Avery Hall signs $79.8M construction loan with Square Mile for 193-unit project in Gowanus
Avery Hall Investments through the entity 204 4th Avenue LLC as borrower signed a new construction loan with lender Square Mile Capital Management through the entity SM Tactical Finance III-E LLC valued at $79.8 million for the 193-unit project at 204 4th Avenue in Gowanus, Brooklyn.
On the lot, there is one active new building construction project for a 193-unit, 161,490 square-foot R-2 building. The project was submitted by Avery Hall and filed by Alexander Cutrona with plans filed December 8, 2021 and permitted May 23, 2022.
The deal closed on May 2, 2023 and was recorded on May 12, 2023. The prior lender was Israel Discount Bank which held debt that had an original loan amount of $25 million.
The owner bought the property on November 14, 2019, for $29.8 million. The signatory for Avery Hall Investments was Avishy Fisher. The signatory for Square Mile Capital Management was Brad Cohen.
The property
The parcel has frontage of 190 feet and is 100 feet deep with a total lot size of 19,000 square feet. The zoning is C4-4D which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.5 million. The most recent loan totaled $25 million and was provided by Israel Discount Bank on November 14, 2019.
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 $350 in OATH penalties in the last year.
The neighborhood
In Gowanus, The bulk, or 46 percent of the 9.2 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 19 percent of the space. In sales, Gowanus has 1.2 times the average sales volume among other neighborhoods with $414.3 million in sales volume in the last two years and is the 16th highest in Brooklyn. For development, Gowanus is the 6th most active neighborhood among other neighborhoods. It had 4.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 50 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of two of the 16 commercial properties representing 39,780 square feet of the 122,107 square feet. The two identified owners are Three Wall Capital and Avery Hall Investments.
On the tax block, there were three new building construction projects totaling 196,839 square feet. The largest is a 193-unit, 161,490 square-foot residential (R-2) building submitted by Avery Hall and filed by Alexander Cutrona with plans filed December 8, 2021 and permitted May 23, 2022. The second largest is a 76-unit, 18,962 square-foot hotel/dormitory/shelter (R-1) building submitted by Alec Shtromandel with plans filed March 4, 2013 and permitted August 7, 2014.
The majority, or 51 percent of the 122,107 square feet of built space are hotel buildings, with industrial buildings next occupying 32 percent of the space.
The borrower
The PincusCo database currently indicates that Avery Hall Investments owned at least four commercial properties with 122 residential units in New York City with 243,385 square feet and a city-determined market value of $60 million. (Market value is typically about 50% of actual value.) The portfolio has $176 million in debt, borrowed from QuadReal Property Group. Within the portfolio, the bulk, or 98 percent of the 243,385 square feet of built space are elevator properties, with industrial properties next occupying 2 percent of the space. They are all located in Brooklyn.
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