Allied Realty & Development signs $8.8M refi for retail in Coney Island

Allied Realty & Development through the entity Allied IX LLC as borrower signed a refi loan with lender Customers Bank valued at $8.8 million for the retail building (K1) at 3002 Mermaid Avenue in Coney Island, Brooklyn.
The deal closed on March 6, 2025 and was recorded on March 28, 2025. The prior lender was Alma Bank which held debt that had an original loan amount of $9 million.The property has 23,700 square feet of built space and 63,109 square feet of additional air rights for a total buildable of 86,641 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $369 and the price per buildable square foot is $100 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 November 12, 2014, for $12 million. The signatory for Allied Realty & Development was Bahram Hakakian . The signatory for Customers Bank was Jonathan Lieblich.

Prior sales and revenue

The 23,700-square-foot property generated revenue of $967,434 or $41 per square foot, according to the most recent income and expense figures.

The property

The retail building in Coney Island has 23,700 square feet of built space and 63,109 square feet of additional air rights for a total buildable of 86,641 square feet according to a PincusCo analysis of city data. The parcel has frontage of 237 feet and is 150 feet deep with a total lot size of 35,655 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 $4.6 million.

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 $350 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Coney Island, The majority, or 68 percent of the 14.4 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 10 percent of the space. In sales, Coney Island has near average sales volume among other neighborhoods with $263.1 million in sales volume in the last two years and is the 25th highest in Brooklyn. For development, Coney Island has 1.5 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Brooklyn. It had 1.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the three commercial properties representing 410,400 square feet of the 410,400 square feet. The two identified owners are Brookfield Asset Management and Allied Realty & Development.
There are no active new building construction projects on this tax block.

The majority, or 94 percent of the 410,400 square feet of built space are elevator buildings, with retail buildings next occupying 6 percent of the space.

The borrower

The PincusCo database currently indicates that Allied Realty & Development owned at least 47 commercial properties with 475 residential units in New York City with 510,443 square feet and a city-determined market value of $104.4 million. (Market value is typically about 50% of actual value.) The portfolio has $54.4 million in debt, with top three lenders as Citizens Bank, First Republic Bank, and Peapack-Gladstone Bank respectively. Within the portfolio, the bulk, or 51 percent of the 510,443 square feet of built space are walkup properties, with retail properties next occupying 24 percent of the space. The bulk, or 74 percent of the built space, is in Manhattan, with Brooklyn next at 14 percent of the space.

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