Adam America signs $44M refi for two residential elevator properties in Boerum Hill

Adam America Real Estate through the entity 577 Baltic Asset LLC as borrower signed a refi loan with lender Valley National Bank valued at $44 million for two residential elevator properties including the 70-unit residential elevator building (D6) at 595 Baltic Street in Boerum Hill, Brooklyn and 27-unit residential elevator building (D3) at 577 Baltic Street in Boerum Hill, Brooklyn.
The deal closed on August 31, 2022 and was recorded on September 2, 2022. The prior lender was Deutsche Bank which held debt that had an original loan amount of $39 million. The two properties have 79,978 square feet of built space and 189 square feet of additional air rights according to PincusCo analysis of city data. The loan price per built square foot is $550 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 Adam America Real Estate was Ron Vaksin.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 595 Baltic Street.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Dvir Cohen Hoshen, head officer and CJ Cintron, site manager. The business entity is 595 Baltic Asset Llc. The two properties with a total of 79,978 square feet of built space generated revenue of $3.7 million per year or $46 per square foot.

The property

The 595 Baltic Street parcel has frontage of 153 feet and is 100 feet deep with a total lot size of 15,367 square feet. The zoning is R7B which allows for up to 3 times floor area ratio (FAR) for residential. The property has a 421A exemption that started in 2018 and expires in 2033. The city-designated market value for the property in 2022 is $16.3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received one DOB violation in the last year.

Development

For the tax lot buildings, two out of the two buildings received a initial certificate of occupancy in the last ten years. 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 the tax block of 595 Baltic Street, PincusCo has identified the owners of three of the six commercial properties representing 171,180 square feet of the 309,748 square feet. The two identified owners are Omni New York and Yiannes Einhorn.
There are two active new building construction projects totaling 28,606 square feet. The largest is a 24-unit, 21,848-square-foot R-2 building developed by Yiannes Einhorn with plans filed October 11, 2018 and permitted April 19, 2021. The second largest is a one-unit, 6,758-square-foot R-3 building developed by Kevin Britt with plans filed June 5, 2019 and it has not been permitted yet.

The majority, or 100 percent of the 309,748 square feet of built space are elevator buildings.

The borrower

The PincusCo database currently indicates that Adam America Real Estate owned at least nine commercial properties in New York City with 424,129 square feet and a city-determined market value of $41.4 million. (Market value is typically about 50% of actual value.) The portfolio has $304.8 million in debt, with top three lenders as Axos Bank, AIG, and MSD Partners respectively. Within the portfolio, the bulk, or 96 percent of the 424,129 square feet of built space are elevator properties, with retail properties next occupying 3 percent of the space. The bulk, or 55 percent of the built space, is in Manhattan, with Brooklyn next at 45 percent of the space.

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