Beitel Group signs $29M refi with Slate in Mott Haven
Beitel Group through the entity Walton Street GC Developments LLC as borrower signed a refi loan with lender Slate Property Group through the entity Scale 261 Grand Concourse Lender LLC valued at $29 million for three properties including at 261 Grand Concourse, 270 Walton Avenue and at 315 Grand Concourse in Mott Haven, Bronx.
There is a development project, X00561795, for a new building calling for a 96-unit, 73,360 square-foot R-2 building submitted by Beitel Group and filed by Binyamin Beitel with plans filed August 9, 2021 and permitted March 11, 2022.
The loan closed on September 5, 2024 and was recorded on September 16, 2024. The prior lender was Cerco Funding which held debt that had an original loan amount of $27.5 million.The three properties have 46,463 square feet of built space and 230,818 square feet of additional air rights for a total buildable of 256,801 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $624 and the price per buildable square foot is $112 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 signatory for Beitel Group was Ben Beitel. The signatory for Slate Property Group was Stephen Krasman.
Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 315 Grand Concourse.
Prior sales and revenue
The three properties with a total of 46,463 square feet of built space generated revenue of $619,448 per year or $13 per square foot.
The property
The industrial building in Mott Haven has 46,463 square feet of built space and 230,818 square feet of additional air rights for a total buildable of 256,801 square feet according to a PincusCo analysis of city data. The parcel has frontage of 173 feet and is 77 feet deep with a total lot size of 16,062 square feet. The lot is irregular. The zoning is C6-2A which allows for up to 6 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 $1.1 million. The most recent loan totaled $27.5 million and was provided by Cerco Funding on November 23, 2022.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $5,090 in ECB penalties and $6,090 in OATH penalties in the last year.
Development
For the tax lot buildings, one out of the three buildings received a initial certificate of occupancy in the last ten years. On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 265,386 square feet. The largest, X00673520, is a new building project for a 240-unit, 192,026 square-foot R-2 building submitted by Michael Lichtenstein and filed by Yechial Lichtenstein with plans filed February 28, 2022 and permitted June 11, 2024.
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 near average sales volume among other neighborhoods with $296.6 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven has 1.6 times the average amount of major developments relative to other neighborhoods and is the 2nd highest in Bronx. It had 1.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.
The block
On the tax block of 315 Grand Concourse, 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 Altmark Group, followed by Beitel Group and then Knickpoint Ventures.
On the tax block, there were five new building construction projects totaling 784,155 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 permitted June 11, 2024.
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 $358.5 million in debt, with top three lenders as Slate Property Group, MF1 Capital, 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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