The Real Deal New York

These were the top 10 outer borough loans in November

A $275M loan from Bank of the Ozarks for a Queens office development topped the list
By Eddie Small | December 07, 2018 07:00AM

Renderings of the JACX and Admiral’s Row

The largest outer borough loan last month was once again in Long Island City.

The top loan in November was for $275 million for Tishman Speyer’s 28-10 Queens Plaza South, better known as the “JACX” office complex. Queens had four spots on the top 10 overall, while Brooklyn had five, the Bronx had one and Staten Island had none.

The loans were worth about $1.4 billion overall, and every loan in the top five cracked the $100 million mark. Major deals included $269 million from Newmark Knight Frank to the Blackstone Group for Parker Towers and $228 million from M&T Bank and BNY Mellon to Doug Steiner for Admiral’s Row.

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

1.) Ozark – $275 million

The largest outer borough loan in November was $275 million from Bank of the Ozarks for Tishman Speyer’s “JACX” complex in Long Island City. The office development is located at 28-10 Queens Plaza South and includes a pair of 27-story towers that are already 75 percent leased, according to Tishman. This includes a 250,000-square-foot lease from WeWork that the co-working giant signed in 2016. The complex should be done by the end of 2019.

2.) Hello, Newmark – $269 million

The No. 2 loan was $269.1 million from Newmark Knight Frank for the Blackstone Group’s $500 million purchase of Queens’ Parker Towers housing complex. The financing adds $104.1 million to an existing $165 million loan. Blackstone had agreed to buy Parker Towers from the Jack Parker Corporation in September, which includes 1,327 units across three buildings in Forest Hills.

3.) Nothing Could be Steiner – $228 million

Brooklyn made its first appearance at No. 3 with developer Doug Steiner’s $228 million loan for Admiral’s Row, his mixed-use project at the Brooklyn Navy Yard. The construction financing came from M&T Bank and BNY Mellon, and it was arranged by JLL. A 75,000-square-foot Wegman’s will be the anchor tenant, and the project will also include an additional 85,000 square feet of retail space and 356,000 square feet of office and light industrial space that will be master leased to the Brooklyn Navy Yard Development Corporation.

4.) Que Zara, Zara – $173 million

Zara Realty took the No. 4 spot with a $173 million refinancing package for 15 buildings in Queens. The loan came from M&T Bank and included a gap mortgage of $48.2 million. Zara is making several long-term investments in the buildings, including upgrading their heating and cooling systems and installing new elevators, kitchens, bathrooms and floors.

5.) Wouldn’t be Prudential – $102 million

This roughly $102 million loan arranged through Prudential is being used to help finance Jonathan Rose Companies’ roughly $150 million purchase of Shore Hill Housing, a Section 8 housing complex at 9000 Shore Road in Bay Ridge. The firm purchased it from NYU Langone in partnership with the affordable housing nonprofit NHP Foundation and TIAA investment manager Nuveen. The site consists of two 14-story buildings spanning roughly 414,000 square feet and including 558 apartments. The new owners plan to improve resident services at the buildings and make them more environmentally friendly.

6.) Greystone Serves – $98.9 million

Greystone Servicing Corporation loaned Clipper Equity and the Chetrit Group $98.9 million for their Parkside Brooklyn residential complex. The property consists of two buildings at 123 and 125 Parkside Avenue in Prospect Park South with 131 residential units each, and the new debt replaces a $38 million mortgage from TD Bank. The luxury rental building was built on the old Caledonian Hospital site and has become a popular source of local ghost stories.

7.) Greystone Funds – $71.8 million

Greystone Funding Corporation loaned Centers Health Care about $71.8 million for its recovery and rehabilitation facility at 1160 Teller Avenue in the Bronx. The 35-year loan is HUD-insured and will be used to refinance existing debt on the property and renovate parts of the facility, according to GlobeSt.

8.) SUNY Skies – $71.3 million

Investor Abraham Leser received this $71.3 million loan from TD Bank for SUNY Downstate Medical Center’s Bay Ridge location. The financing replaces a $25 million mortgage that Continental Casualty Company issued in 2011. The building is based at 9036 7th Avenue and stands seven stories tall, offering services like urgent care and ambulatory surgery.

9.) 28 Properties Later – $70 million

Delshah Capital received a $70 million loan from Signature Bank for a 28-property portfolio it bought for $102 million earlier this year. The purchase is centered on properties in Brooklyn but includes two on the Lower East Side as well. Collectively, the buildings span about 200,000 square feet with 210 residential units and 12 commercial units. Delshah Capital head Michael Shah plans to renovate them and raise rents by a collective 31 percent in two years.

10.) Pi Day – $60 million

First Republic Bank closed out November’s list with a $60 million loan to Pi Capital Partners for 85-15 Queens Boulevard in Elmhurst. The deal replaces $55 million in financing from People’s United Bank. The 147-unit residential building is known as Elm West and also contains 30,000 square feet of ground floor retail and a 32,000-square-foot charter school.