BEB, SK Development, Totem, Ofer Cohen sign $96M construction loan for 187-unit project
A joint venture composed of BEB Capital, SK Development, Totem, and Ofer Cohen through the entity 745 4th Avenue, LLC as borrower signed a new construction loan with lender Canyon Partners and JPMorgan Chase through the entity Cred III-SL Acquisition LLC valued at $96 million for the 187-unit mixed-use project at 737 4th Avenue in Sunset Park, Brooklyn.
On the lot, there is one active new building construction project for a 187-unit, 144,201 square-foot R-2 building. The project was submitted by BEB Capital and filed by Craig Miller with plans filed September 23, 2021 and permitted May 13, 2022.
The deal closed on March 12, 2024 and was recorded on March 29, 2024. The prior lender was HSBC Bank which held debt that had an original loan amount of $7.4 million.
The owner bought the property on December 11, 2018, for $7.2 million. The signatory for BEB Capital, SK Development, Totem, and Ofer Cohen was Scott Shnay of SK Development. The signatory for Canyon Partners and JPMorgan Chase was Jonathan M. Kaplan of Canyon Partners.
Aaron Appel, Jonathan Schwartz, Adam Schwartz, Keith Kurland, and Michael Ianno of Walker & Dunlop advised on the financing. In addition to the construction loan, Tribeca Investment Group made a $25 million preferred equity investment, The Real Deal reported.
The property
The parcel has frontage of 200 feet and is 100 feet deep with a total lot size of 20,033 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.8 million. The most recent loan totaled $7.4 million and was provided by HSBC Bank on January 1, 2022.
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 $400 in OATH penalties in the last year.
The block
On this tax block, PincusCo has identified the owners of two of the 13 commercial properties representing 65,491 square feet of the 156,760 square feet. The two identified owners are Joel Shafran and BEB Capital.
On the tax block, there was one new building construction project filed totaling 144,201 square feet. It is a 187-unit, 144,201 square-foot residential (R-2) building submitted by BEB Capital and filed by Craig Miller with plans filed September 23, 2021 and permitted May 13, 2022.
The majority, or 81 percent of the 156,760 square feet of built space are industrial buildings, with specialty buildings next occupying 7 percent of the space.
The borrower
The PincusCo database currently indicates that BEB Capital owned at least 14 commercial properties with 197 residential units in New York City with 187,956 square feet and a city-determined market value of $44.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 77 percent of the 187,956 square feet of built space are elevator properties, with F4 properties next occupying 6 percent of the space. The bulk, or 53 percent of the built space, is in Brooklyn, with Manhattan next at 45 percent of the space.
The PincusCo database currently indicates that SK Development owned at least three commercial properties with 124 residential units in New York City with 101,470 square feet and a city-determined market value of $19.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 95 percent of the 101,470 square feet of built space are walkup properties, with mixed-use properties next occupying 5 percent of the space. The bulk, or 95 percent of the built space, is in Brooklyn, with Manhattan next at 5 percent of the space.
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