Angelo Rigas signs $30M loan with Hirshmark for dev site in South Slope, other properties

Angelo Rigas through the entity Zoriano, Inc. as borrower signed a loan with lender Hirshmark Capital through the entity 263 Prospect Ave Funding LLC valued at $30 million for development site at 263 Prospect Avenue in South Slope, Brooklyn, the industrial building (E1) at 4920 3rd Avenue in Sunset Park, Brooklyn and other properties.
On these lots, there is one active new building construction project for a 147-unit, 140,420 square-foot R-2 building. The project was submitted by George Rigas and filed by George Rigas with plans filed January 27, 2022 and permitted April 22, 2022.
The deal closed on August 31, 2023 and was recorded on September 7, 2023. The 21 properties have 135,868 square feet of built space and 97,262 square feet of additional air rights for a total buildable of 232,957 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $220 and the price per buildable square foot is $128 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 Angelo Rigas was Angelo Rigas.

The property

The specialty building in South Slope has 135,868 square feet of built space and 97,262 square feet of additional air rights for a total buildable of 232,957 square feet according to a PincusCo analysis of city data. The parcel has frontage of 175 feet and is 177 feet deep with a total lot size of 32,199 square feet. The lot is irregular. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $7.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received four DOB violations, $16,050 in ECB penalties, and $17,230 in OATH penalties in the last year.

The neighborhood

In South Slope, The bulk, or 47 percent of the 4.6 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, South Slope has had very little sales volume relative to other neighborhoods with $267.2 million in sales volume in the last two years. For development, South Slope has had very little major development activity relative to other neighborhoods.It had 262,876 square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On the tax block of 263 Prospect Avenue, PincusCo has identified the owners of 14 of the 30 commercial properties representing 69,655 square feet of the 149,152 square feet. The largest owner is Luba Vainer, followed by Kupferman Family and then John Scarpinito.
On the tax block, there were two new building construction projects totaling 146,044 square feet. The largest is a 147-unit, 140,420 square-foot residential (R-2) building submitted by George Rigas and filed by George Rigas with plans filed January 27, 2022 and permitted April 22, 2022. The second largest is a three-unit, 5,624 square-foot residential (R-2) building submitted by Robert Saffayeh with plans filed December 8, 2021 and permitted November 14, 2022.

The majority, or 34 percent of the 149,152 square feet of built space are elevator buildings, with mixed-use buildings next occupying 24 percent of the space.

The borrower

The PincusCo database currently indicates that Angelo Rigas owned at least 12 commercial properties with 10 residential units in New York City with 70,738 square feet and a city-determined market value of $13 million. (Market value is typically about 50% of actual value.) The portfolio has $5.2 million in debt, borrowed from TD Bank. Within the portfolio, the bulk, or 86 percent of the 70,738 square feet of built space are P9 properties, with elevator properties next occupying 11 percent of the space. The bulk, or 89 percent of the built space, is in Brooklyn, with Queens next at 11 percent of the space.

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