The Real Deal New York

These were the top 10 outer borough loans in July

A $450M mortgage for what will be the tallest building in Queens topped the list
By Eddie Small |
Research by Adam Pincus
August 30, 2018 08:00AM

Clockwise from left: 23-15 44th Drive, 85 Jay Street, and 43-25 Hunter Street (Credit: CityRealty)

The most common sight on July’s list of top outer borough loans was the city’s Housing Development Corporation.

The agency was the lender on five of the top 10 loans last month. HDC typically concentrates its financing during closing periods in June and December, and the July loans stemmed from this year’s June closing period, according to the agency.

The largest loan in July was from JPMorgan Chase and other banks for $450 million to United Construction & Development Group for the Court Square City View Tower, which is set to be the tallest tower in Queens. The No. 2 spot went to Rockrose Development, which received a $348 million loan from the New York State Housing Finance Agency.

Overall, the list was split between four Queens loans, four Brooklyn loans and two Bronx loans.

The full list of the top 10 outer borough loans for July is as follows:

1. See You in Court Square – $450 million
July’s top loan was from a group of banks including JPMorgan Chase to Chris Jiashu Xu’s United Construction & Development Group for the Court Square City View Tower at 23-15 44th Drive in Long Island City. The building will contain 802 units and stand 67 stories tall when completed, making it the tallest tower in Queens. It is expected to cost about $700 million. Sales could begin by the end of the year, with prices ranging from $500,000 to $4 million. Meridian Capital Group brokered the financing.

2. Solid as a Rockrose – $348 million
Rockrose Development received a $348 million loan from the New York State Housing Finance Agency, which has a servicing agreement with Wells Fargo, for its Hayden project. That is also located in Long Island City at 43-25 Hunter Street. The debt replaces a $270 million loan from 2015 on the multifamily project, which will contain 974 units throughout a 14-story building and a 50-story tower. The development will also include a basketball court, a fitness center and a parking garage.

3. Jehovah’s loans – $276.2 million
CIM Group and LIVWRK Holdings landed a $276.2 million loan for the former Jehovah’s Witnesses site at 85 Jay Street in Dumbo from JPMorgan Chase. CIM owns about 95 percent of the project, while LIVWRK has the minority stake. Kushner Companies sold its share of the building in June. The firms plan to build a 21-story, 874,000-square-foot building with 737 units that would cost about $1.1 billion on the site. They bought the property in 2017 for $345 million.

4. M&TF Cornerstone – $265.7 million
M&T Realty Capital loaned TF Cornerstone $265.7 million for the company’s Downtown Brooklyn project at 33 Bond Street. M&T is providing $15.7 million in new financing for the luxury rental project and assuming the $250 million mortgage on the property. The development spans about 600,000 square feet and contains 714 residential units.

5. The Little Mermaid Avenue – $209.8 million
This was the largest of the five loans from HDC on the list. The agency provided L+M Development Partners with $209.8 million for 1926 Mermaid Avenue on Coney Island. The project will feature 1,000 apartments, 80,000 square feet of office space and 150,000 square feet of retail space, according to YIMBY.

6. Rock, Rock, Rockaway Beach – $193 million
The second HDC loan in the top 10 was $193 million for Phipps Houses’ Far Rockaway project at 20-02 Mott Avenue, dubbed Far Rockaway Village. The money will go toward the first phase of the affordable housing development, which consists of 457 residential units. The project will include about 1,700 housing units overall.

7. Omnipresent – $170 million
HDC loaned Omni New York $170 million for its Jamaica project at 92-23 168th Street. The package is comprised of five different notes, the largest of which is a senior building loan for $59.5 million. The 23-story mixed-use development will span 413,000 square feet with 389 apartments, 68,800 square feet of retail space and a 47,600-square-foot parking lot.

8. The Father, the Son and the Holy Loan – $114.8 million
The Association of New York Catholic Homes received a loan from HDC as well. The $114.8 million is going to 1932 Bryant Avenue in the Bronx, where the organization is developing a 15-story, 319-unit affordable housing building spanning about 300,000 square feet, split between roughly 12,000 square feet of commercial space, 9,000 square feet of commercial space and 276,000 square feet of residential space. Work should start in January.

9. My Dear Watson Avenue – $107 million
The final HDC loan in July’s top 10 was to Azimuth Development Group. The agency loaned it $107 million for 1755 Watson Avenue in the Bronx, where it is planning a nine-story, 326-unit apartment complex spanning 313,000 square feet. The development is on the site of the Bronx Pentecostal Deliverance Center, and it will include about 10,000 square feet for the church and 17,000 square feet of retail. Roughly 40 percent of the residential units will be affordable.

10. Midwood’s Millions – $92 million
The final loan on July’s list — and the only one not to crack the $100 million mark — was from Square Mile Capital. The lender provided Hampshire Properties with $92 million for 1277 East 14th Street in Midwood. It replaces a $70 million one from Bank Leumi. Hampshire’s rental project will span roughly 277,000 square feet and include 302 residential units.