Avdoo & Partners signs $105M construction loan for 104-unit development in Boerum Hill
Avdoo & Partners Development through the entity Bergen Owner LLC as borrower signed a new construction loan with lender Valley National Bank through the entity Valley National Bank valued at $105 million for the development building (V0) at 325 Bergen Street in Boerum Hill, Brooklyn.
On the lot, there is one active new building construction project for a 104-unit, 136,001 square-foot R-2 building. The project was submitted by Shlomo Avdoo with plans filed July 20, 2022 and permitted March 3, 2023.
The deal closed on December 21, 2023 and was recorded on January 3, 2024.
The owner bought the property on December 28, 2021, for $32.3 million. The signatory for Avdoo & Partners Development was Shlomo Avdoo. The signatory for Valley National Bank was Roland Cablayan.
The property
The parcel has frontage of 375 feet and is 100 feet deep with a total lot size of 37,500 square feet. The zoning is R7B which allows for up to 3 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.4 million. The most recent loan totaled $27.8 million and was provided by Bank Leumi on December 28, 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 $1,250 in ECB penalties in the last year.
The neighborhood
In Boerum Hill, The bulk, or 32 percent of the 9 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 16 percent of the space. In sales, Boerum Hill has 1.2 times the average sales volume among other neighborhoods with $384.2 million in sales volume in the last two years and is the 20th highest in Brooklyn. For development, Boerum Hill has 2 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Brooklyn. It had 2 million square feet of commercial and multi-family construction under development in the last two years, which represents 22 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of 20 of the 26 commercial properties representing 85,870 square feet of the 128,328 square feet. The largest owner is Stuart Venner, followed by Patrick Plunkett and then Patrick Cheung.
On the tax block, there were five new building construction projects totaling 208,343 square feet. The largest is a 104-unit, 136,001 square-foot residential (R-2) building submitted by Shlomi Avdoo with plans filed July 20, 2022 and permitted March 3, 2023. The second largest is a 53-unit, 46,985 square-foot residential (R-2) building submitted by Frank J. Rio and filed by Martin Jospeh with plans filed December 16, 2020 and permitted November 16, 2021.
The majority, or 32 percent of the 128,328 square feet of built space are industrial buildings, with walkup buildings next occupying 32 percent of the space.
The borrower
The PincusCo database currently indicates that Avdoo & Partners Development owned at least 14 commercial properties with 75 residential units in New York City with 158,143 square feet and a city-determined market value of $30.8 million. (Market value is typically about 50% of actual value.) The portfolio has $78.1 million in debt, with top three lenders as Bank Leumi, Valley National Bank, and Kearny Bank respectively. Within the portfolio, the bulk, or 22 percent of the 158,143 square feet of built space are retail properties, with mixed-use properties next occupying 22 percent of the space. They are all located in Brooklyn.
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