Abraham Grunhut signs $9M construction loan with Popular Bank for 18-unit project in Bushwick
Abraham Grunhut through the entity Broadway Halsey Lofts LLC as borrower signed a new construction loan with lender Popular Bank valued at $9 million for the development building (V1) at 1587-1591 Broadway in Bushwick, Brooklyn.
On the lot, there is a new building project for a 18-unit, 17,849 square-foot R-2 building submitted by Greenrock Funding and filed by Abraham Greenhut with plans filed March 16, 2022 and it has not been permitted yet.
The deal closed on March 30, 2023 and was recorded on April 20, 2023. The prior lender was Metropolitan Commercial Bank which held debt that had an original loan amount of $1.4 million.The property has zero square feet of built space and 6,801 square feet of additional air rights for a total buildable of 6,801 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $N/A and the price per buildable square foot is $1,328 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 owner bought the property on June 15, 2015, for $2 million. The signatory for Abraham Grunhut was Abraham Grunhut. The signatory for Popular Bank was Wendy Scarlett.
The property
The parcel has frontage of 35 feet and is 80 feet deep with a total lot size of 2,799 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $192,000.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has not received any significant violations in the last year.
The neighborhood
In Bushwick, The bulk, or 44 percent of the 33.6 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 18 percent of the space. In sales, Bushwick has 3.1 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Bushwick has 1.4 times the average amount of major developments relative to other neighborhoods and is the 12th highest in Brooklyn. It had 1.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of four of the seven commercial properties representing 21,926 square feet of the 54,676 square feet. The largest owner is Solomon Landau, followed by David Miao and then Abraham Grunhut.
The majority, or 82 percent of the 54,676 square feet of built space are walkup buildings, with retail buildings next occupying 18 percent of the space.
The borrower
The PincusCo database currently indicates that Abraham Grunhut owned at least 44 commercial properties with 381 residential units in New York City with 317,791 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $90.4 million in debt, with top three lenders as Signature Bank, KeyBank, and Goldman Sachs respectively. Within the portfolio, the bulk, or 73 percent of the 317,791 square feet of built space are walkup properties, with elevator properties next occupying 18 percent of the space. The bulk, or 87 percent of the built space, is in Brooklyn, with Bronx next at 11 percent of the space.
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