Aurora Capital Associates, Midtown Equities sign $66M refi in Brooklyn Heights

Aurora Capital Associates and Midtown Equities through the entity 200 SJA Montague LLC as borrower signed a refi loan with lender Webster Bank through the entity Webster Bank, National Association valued at $66 million for the 121-unit residential elevator building (D7) at 200 Montague Street in Brooklyn Heights, Brooklyn.
The deal closed on June 2, 2023 and was recorded on June 22, 2023. The prior lender was Centennial Bank which held debt that had an original loan amount of $65 million.The property has 123,474 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $534 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 16, 2007, for $25 million. The signatory for Aurora Capital Associates and Midtown Equities was Robert Cayre. The signatory for Webster Bank was Adam Brenner.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Matthew Abreu, head officer and Eileen Arroyo, site manager. The business entities are Pinnacle City Living and 200 Sja Montague Llc. The 123,474-square-foot property generated revenue of $6.4 million or $52 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 121 residential units in Brooklyn Heights has 123,474 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 9,999 square feet. The zoning is C5-2A which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is in the Borough Hall Skyscraper Historic District. The city-designated market value for the property in 2022 is $17.3 million. The most recent loan totaled $43.5 million and was provided by Centennial Bank on July 27, 2021.

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 two DOB violations, $2,400 in ECB penalties, and $3,750 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project for a 121-unit, 110,000 square-foot R-2 building. The project was submitted by Aurora Capital Associates|Midtown Equities and filed by Matthew Abreu with plans filed April 1, 2019 and permitted February 5, 2021.

The block

On this tax block, PincusCo has identified the owners of nine of the 12 commercial properties representing 631,272 square feet of the 1,262,899 square feet. The largest owner is Treeline Companies, followed by Quinlan Development Group and then Midtown Equities.
On the tax block, there was one new building construction project filed totaling 110,000 square feet. It is a 121-unit, 110,000 square-foot residential (R-2) building submitted by Aurora Capital Associates|Midtown Equities and filed by Matthew Abreu with plans filed April 1, 2019 and permitted February 5, 2021.

The majority, or 60 percent of the 1.3 million square feet of built space are office buildings, with elevator buildings next occupying 36 percent of the space.

The borrower

The PincusCo database currently indicates that Aurora Capital Associates owned at least 17 commercial properties with 126 residential units in New York City with 1,107,650 square feet and a city-determined market value of $318.4 million. (Market value is typically about 50% of actual value.) The portfolio has $381.5 million in debt, with top three lenders as Deutsche Pfandbriefbank, New York Community Bank, and Wells Fargo respectively. Within the portfolio, the bulk, or 29 percent of the 1,107,650 square feet of built space are retail properties, with office properties next occupying 22 percent of the space. The bulk, or 58 percent of the built space, is in Manhattan, with Brooklyn next at 40 percent of the space.
The PincusCo database currently indicates that Midtown Equities owned at least four commercial properties with 121 residential units in New York City with 370,212 square feet and a city-determined market value of $94 million. (Market value is typically about 50% of actual value.) The portfolio has $300.5 million in debt, with top three lenders as ACORE Capital, Signature Bank, and Centennial Bank respectively. Within the portfolio, the bulk, or 43 percent of the 370,212 square feet of built space are specialty properties, with elevator properties next occupying 33 percent of the space. The bulk, or 57 percent of the built space, is in Brooklyn, with Manhattan next at 43 percent of the space.

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