Beitel Group signs $150M construction loan with Slate’s Scale for 452-unit project in Mott Haven

Beitel Group through the entity 120 East 144 Owner LLC as borrower signed a new construction loan with lender Slate Property Group through the entity Scale 144th Mott Haven LLC valued at $150 million for the industrial building (E1) at 120 East 144th Street in Mott Haven, Bronx.
On the lot, there is one active new building construction project for a 452-unit, 306,893 square-foot residential (R-2) building. The project was submitted by Beitel Group and filed by Binyamin Beitel with plans filed January 13, 2022 and permitted April 4, 2024.
The deal closed on March 29, 2024 and was recorded on April 22, 2024. The prior lender was BridgeCity Capital which held debt that had an original loan amount of $29 million.

The owner bought the property on March 30, 2022, for $41.5 million. The signatory for Beitel Group was Ben Beitel. The signatory for Slate Property Group was Stephen Krasman. 86 of the 452 units are slated for Inclusionary Housing, and all 86 are for low income, below 80 AMI.

Prior sales and revenue

The 82,956-square-foot property generated revenue of $1.5 million or $18 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Mott Haven has 82,956 square feet of built space and 185,290 square feet of additional air rights for a total buildable of 268,136 square feet according to a PincusCo analysis of city data. The parcel has frontage of 202 feet and is 225 feet deep with a total lot size of 44,541 square feet. The lot is irregular. The zoning is M1-4/R8A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6.2 million. The most recent loan totaled $32.4 million and was provided by Slate Property Group on March 29, 2024.

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 $3,300 in OATH penalties in the last year.

The neighborhood

In Mott Haven, The bulk, or 45 percent of the 41.7 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 23 percent of the space. In sales, Mott Haven has 1.3 times the average sales volume among other neighborhoods with $356.8 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven has 2.1 times the average amount of major developments relative to other neighborhoods and is the 2nd highest in Bronx. It had 2.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 11 commercial properties representing 292,457 square feet of the 351,966 square feet. The largest owner is Knickpoint Ventures, followed by John Holsapple and then Family Life Academy Charter Schools.
On the tax block, there were four new building construction projects totaling 753,371 square feet. The largest is a 470-unit, 306,893 square-foot residential (R-2) building submitted by Beitel Group and filed by Binyamin Beitel with plans filed January 13, 2022 and permitted April 4, 2024. The second largest is a 240-unit, 192,026 square-foot residential (R-2) building submitted by Michael Lichtenstein and filed by Yechial Lichtenstein with plans filed February 28, 2022 and it has not been permitted yet.

The majority, or 68 percent of the 351,966 square feet of built space are industrial buildings, with specialty buildings next occupying 32 percent of the space.

The borrower

The PincusCo database currently indicates that Beitel Group owned at least 12 commercial properties with 112 residential units in New York City with 344,533 square feet and a city-determined market value of $36 million. (Market value is typically about 50% of actual value.) The portfolio has $191.7 million in debt, with top three lenders as MF1 Capital, Slate Property Group, and BridgeCity Capital respectively. Within the portfolio, the bulk, or 39 percent of the 344,533 square feet of built space are industrial properties, with elevator properties next occupying 31 percent of the space. The bulk, or 62 percent of the built space, is in Brooklyn, with Bronx next at 38 percent of the space.

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