Arie Bar Chaim signs $5.8M refi loan with White Oak for condo project in Bushwick

Arie Bar Chaim through the entity 68 Eldert St LLC as borrower signed a refi loan with lender White Oak Financial through the entity White Oak Assets LLC valued at $5.8 million for the 10-unit condominium project at 68 Eldert Street in Bushwick, Brooklyn.
The deal closed on March 8, 2023 and was recorded on May 25, 2023. The prior lender was Quanta Finance which held debt that had an original loan amount of $5 million.

This is a major alteration project. Arie Bar Chaim, also known as Arik Bar-Chaim, of 68 Eldert St LLC submitted a major alteration application for the conversion of a 4,748 square-foot religious building at 68 Eldert Street in Bushwick, Brooklyn to a 13,475-square foot building with five stories and 10 units. The plan was filed with the New York City Department of Buildings on September 13, 2018 under job number 321384328 and was permitted on April 9, 2021.
The owner bought the property on June 27, 2019, for $1.9 million. The signatory for Arie Bar Chaim was Arie Bar Chaim. The signatory for White Oak Financial was Ian Axelrod.

The property

The parcel has frontage of 45 feet and is 100 feet deep with a total lot size of 4,500 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 $419,000.

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 one DOB violation, $2,500 in ECB penalties, and $2,500 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. On the tax lot, the most recent condominium plan was filed by 68 ELDERT ST LLC to create 10 residential units and 1 commercial units in a building at 68 Eldert Street in Bushwick, Brooklyn, called 68 Eldert Street Condominium that has a $11.4 million sellout, according to an January 13, 2022 submission to the New York State Attorney General.

The neighborhood

In Bushwick, The bulk, or 44 percent of the 33.6 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 18 percent of the space. In sales, Bushwick has 3.1 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Bushwick has 1.4 times the average amount of major developments relative to other neighborhoods and is the 12th highest in Brooklyn. It had 1.4 million 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 two of the four commercial properties representing 48,340 square feet of the 53,770 square feet. The two identified owners are Sol Sinay and Pennrose.
There are no active new building construction projects on this tax block.

The majority, or 90 percent of the 53,770 square feet of built space are walkup buildings, with mixed-use buildings next occupying 10 percent of the space.

The borrower

The PincusCo database currently indicates that Arie Bar Chaim owned at least two commercial properties in New York City with 1,875 square feet and a city-determined market value of $249,490. (Market value is typically about 50% of actual value.) The portfolio has $5.5 million in debt, borrowed from Quanta Finance. Within the portfolio, all identified are specialty properties. They are all located in Brooklyn.

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