Arcus Development signs $33M construction loan with Derby Copeland in East Village
Arcus Development through the entity Astor Nine LLC as borrower signed a new construction loan with lender Derby Copeland Capital through the entity Derby Hilliard 88, LLC valued at $33 million for the 18-unit project at 220 East 9th Street in the East Village, Manhattan.
On the lot, there is one active major alteration construction project, M01042621, for a 18-unit, 31,231 square-foot residential (R-2) building. The project was submitted by Arcus Development and filed by Roger Bittenbender with plans filed May 28, 2024 and permitted February 24, 2025.
The deal closed on March 14, 2025 and was recorded on March 25, 2025. The prior lender was Derby Copeland Capital which held debt that had an original loan amount of $8.4 million.The property has 22,460 square feet of built space and 9,056 square feet of additional air rights for a total buildable of 31,500 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $1,469 and the price per buildable square foot is $1,047 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 March 1, 2024, for $14 million. The signatory for Arcus Development was Roger Bittenbender .
The property
The industrial building in East Village has 22,460 square feet of built space and 9,056 square feet of additional air rights for a total buildable of 31,500 square feet according to a PincusCo analysis of city data. The parcel has frontage of 105 feet and is 75 feet deep with a total lot size of 7,875 square feet. The zoning is R8B which allows for up to 4 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $6 million. The most recent loan totaled $8.4 million and was provided by Derby Copeland Capital on March 1, 2024.
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 $50 in OATH penalties in the last year.
The neighborhood
In East Village, The bulk, or 44 percent of the 15.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 20 percent of the space. In sales, East Village has 2.2 times the average sales volume among other neighborhoods with $597.4 million in sales volume in the last two years and is the 19th highest in Manhattan. For development, East Village has had very little major development activity relative to other neighborhoods.It had 558,132 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of 16 of the 30 commercial properties representing 162,008 square feet of the 270,844 square feet. The largest owner is GPG Properties, followed by Derby Copeland Capital and then Movcap.
On the tax block, there was one new building construction project filed totaling 29,089 square feet. It is a 29,089 square-foot business (B) building submitted by Mark Seigel with plans filed October 12, 2018 and permitted April 27, 2023.
The majority, or 56 percent of the 270,844 square feet of built space are walkup buildings, with mixed-use buildings next occupying 16 percent of the space.
The borrower
The PincusCo database currently indicates that Arcus Development owned at least one commercial property in New York City with 22,460 square feet and a city-determined market value of $6 million. (Market value is typically about 50% of actual value.) The portfolio has $8.4 million in debt, borrowed from Derby Copeland Capital. The portfolio consists of at least a single industrial property. It is located in Manhattan.
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