ACHS Management signs $11M refi with Valley National Bank for retail in Crown Heights

73-97 Empire Boulevard (Credit - Google)

73-97 Empire Boulevard (Credit - Google)

The Adjmi family’s ACHS Management through the entity Empire Boulevard Holdings LLC as borrower signed a refi loan with lender Valley National Bank valued at $11 million for the retail building (K1) at 73-97 Empire Boulevard in Crown Heights, Brooklyn.
The deal closed on June 28, 2024 and was recorded on July 12, 2024. The prior lender was Blackstone Group which held debt that had an original loan amount of $10 million. The property has 38,679 square feet of built space and 68,231 square feet of additional air rights for a total buildable of 76,236 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $284 and the price per buildable square foot is $144 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 April 12, 2021, for $15.2 million. The signatory for ACHS Management was Alex Adjmi. The signatory for Valley National Bank was Leo J. Kuba.

The property

The retail building in Crown Heights has 38,679 square feet of built space and 68,231 square feet of additional air rights for a total buildable of 76,236 square feet according to a PincusCo analysis of city data. The parcel has frontage of 198 feet and is 199 feet deep with a total lot size of 38,118 square feet. The lot is irregular. The zoning is C8-2 which allows for up to 2 times floor area ratio (FAR) for commercial. The city-designated market value for the property in 2022 is $2 million. The most recent loan totaled $10 million and was provided by Signature Bank on April 12, 2021.

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 received $1,250 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project for a 47,559 square-foot M building. The project was submitted by Moses Strulovitch with plans filed February 25, 2015 and it has not been permitted yet.

The neighborhood

In Crown Heights, The bulk, or 39 percent of the 46.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 36 percent of the space. In sales, Crown Heights has 2.4 times the average sales volume among other neighborhoods with $641.3 million in sales volume in the last two years and is the 7th highest in Brooklyn. For development, Crown Heights has 2.1 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Brooklyn. It had 2.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 12 commercial properties representing 85,579 square feet of the 153,014 square feet. The largest owner is Yaakov Gold, followed by E&M Associates and then ACHS Management.
On the tax block, there was one new building construction project filed totaling 134,391 square feet. It is a 57-unit, 134,391 square-foot residential (R-2) building submitted by Seventh Street Development Group and filed by Jack Gold with plans filed November 9, 2021 and permitted January 5, 2023.

The majority, or 40 percent of the 153,014 square feet of built space are industrial buildings, with elevator buildings next occupying 31 percent of the space.

The borrower

The PincusCo database currently indicates that ACHS Management owned at least 71 commercial properties with 127 residential units in New York City with 1,346,033 square feet and a city-determined market value of $406.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 57 percent of the 1,346,033 square feet of built space are retail properties, with mixed-use properties next occupying 24 percent of the space. The bulk, or 34 percent of the built space, is in Manhattan, with Brooklyn next at 34 percent of the space.

Direct link to Acris document. link

Share this article