Abraham Brach signs $15M refi loan with Blue Foundry Bank for 59-unit rental in Bedford Stuyvesant

Abraham Brach through the entity Cascade Building G LLC as borrower signed a refi loan with lender Blue Foundry Bank valued at $15 million for the 59-unit residential elevator building (D7) at 869 Myrtle Avenue in Bedford Stuyvesant, Brooklyn.
The deal closed on November 30, 2022 and was recorded on December 14, 2022. The prior lender was G4 Capital Partners which held debt that had an original loan amount of $14.9 million. The property has 71,947 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $208 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Abraham Brach was Abraham Brach. The signatory for Blue Foundry Bank was Christopher Canlas. Cascade Linen was developed by Abraham Brach’s Signature Acquisitions, Isaac Deutsch’s Empire State Management and Nachman Leibowitz.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Abraham Brach, head officer and Joel Redek, agent. The business entities are Williamsburg Property Management and Cascade 553 Llc. The 71,947-square-foot property generated revenue of $1.5 million or $21 per square foot, according to the most recent income and expense figures.

The property

The 869 Myrtle Avenue parcel has frontage of 145 feet and is 80 feet deep with a total lot size of 11,600 square feet. The zoning is R7D which allows for up to 4.2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $7.3 million.The most recent loan totaled $78.7 million and was provided by G4 Capital Partners on April 16, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received one DOB violation and $5,000 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on September 29, 2022. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of eight of the 19 commercial properties representing 292,826 square feet of the 416,996 square feet. The largest owner is Abraham Brach, followed by Michele Sottile and then Yitzchok Schwartz.
On the tax block, there were four new building construction projects totaling 159,486 square feet. The largest is a 58-unit, 114,340-square-foot R-2 building developed by Isaac Deutsch with plans filed December 8, 2014 and permitted June 8, 2015. The second largest is a 16-unit, 15,598-square-foot R-2 building developed by Jose Jorge with plans filed May 29, 2018 and permitted November 21, 2018.

The majority, or 93 percent of the 376,318 square feet of built space are elevator buildings, with mixed-use buildings next occupying 7 percent of the space.

The borrower

The PincusCo database currently indicates that Abraham Brach owned at least seven commercial properties in New York City with 225,038 square feet and a city-determined market value of $18.1 million. (Market value is typically about 50% of actual value.) The portfolio has $105.1 million in debt, with top three lenders as G4 Capital Partners, BridgeCity Capital, and Webster Bank respectively. Within the portfolio, the bulk, or 86 percent of the 225,038 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. They are all located in Brooklyn.

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