Alloy signs $42.5M refi with Maxim Capital for retail conversion in Boerum Hill

Alloy Development through the entity 378 Schermerhorn Street LLC as borrower signed a refi loan with lender Maxim Capital Group through the entity Maxim Credit Group, LLC valued at $42.5 million for the conversion of the three-story former home of the Khalil Gibran International Academy school building (W1) at 362 Schermerhorn Street in Boerum Hill, Brooklyn, to retail, under Department of Buildings Job B01019436.
The deal closed on December 18, 2024 and was recorded on January 14, 2025. The prior lender was Goldman Sachs which held debt that had an original loan amount of $25 million. The property has 39,550 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $1,074 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 Alloy Development was Jared Della Valle. The signatory for Maxim Capital Group was Eric Chan.

The property

The specialty building in Boerum Hill has 39,550 square feet of built space and 178,681 square feet of additional air rights for a total buildable of 218,170 square feet according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 145 feet deep with a total lot size of 21,817 square feet. The lot is irregular. The zoning is C6-9 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $5.5 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 not received any significant violations 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 Boerum Hill, The bulk, or 32 percent of the 9 million square feet of commercial built space are elevator buildings, with mixed-use buildings next occupying 16 percent of the space. In sales, Boerum Hill has 1.4 times the average sales volume among other neighborhoods with $355.2 million in sales volume in the last two years and is the 19th highest in Brooklyn. For development, Boerum Hill has near average amount of major developments among other neighborhoods and is the 13th highest in Brooklyn. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the three commercial properties representing 39,550 square feet of the 39,550 square feet. The identified owner is Jennifer Maldonado Executive Director Education Of Construction Fund.
On the tax block, there were three new building construction projects totaling 1,268,967 square feet. The largest is a 262-unit, 422,989 square-foot residential (R-2) building submitted by Alloy Development and filed by Alexander Pires with plans filed October 5, 2019 and permitted June 22, 2021. The second largest is a 422,989 square-foot educational (E) building submitted by NYC School Construction Authority and filed by Jennifer Maldonado with plans filed October 21, 2019 and permitted February 28, 2022.

The majority, or 100 percent of the 39,550 square feet of built space are specialty buildings, with development buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Alloy Development owned at least one commercial property in New York City with 24,180 square feet and a city-determined market value of $4.9 million. (Market value is typically about 50% of actual value.) The portfolio has $440 million in debt, with top three lenders as New York Life Insurance Company, Goldman Sachs, and Bank of America respectively. The portfolio consists of at least a single P5 property. It is located in Brooklyn.

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