Beltway Capital Management buys two notes for $20M in Crown Heights, Chelsea

Note buyer Beltway Capital Management paid $20 million for two notes secured by unrelated properties in Crown Heights and in Chelsea in two separate transactions.

In the larger, Beltway Capital Management through the entity Mccormick 101, LLC, bought a note with an original principal of $16.1 million from Investors Bank secured by E&M Associates’s 28-unit residential elevator building (D7) at 90 Sullivan Place in Crown Heights, Brooklyn.
The deal closed on October 18, 2022 and was recorded on December 13, 2022. The prior lender was Investors Bank which held debt that had an original loan amount of $16.1 million. The property has 46,900 square feet of built space according to PincusCo analysis of city data.
The owner bought the property on August 24, 2016, for $21.5 million. The signatory for E&M Associates was Leibel Lederman.

In the smaller, Beltway Capital Management through the entity Mccormick 101 LLC bought a note with an original principal of $4 million from Investors Bank secured by Westfair Property Management’s mixed-use building (K4) at 230 Seventh Avenue in Chelsea, Manhattan. The deal closed on October 18, 2022 and was recorded on December 13, 2022. The prior lender was Investors Bank which held debt that had an original loan amount of $4 million. The property has 5,710 square feet of built space and 8,447 square feet of additional air rights for a total buildable of 14,157 square feet according to PincusCo analysis of city data. The owner bought the property on October 25, 2012, for $4.2 million. The signatory for Westfair Property Management was Anthony LoConte.

Prior sales and revenue

The owners of 90 Sullivan Place according to the Department of Housing Preservation and Development includes Scott Katz, head officer and Anand Ramsawak, site manager. The business entities are Soft Stone Development Group Llc and 90 Sullivan Owner Llc. The 46,900-square-foot property generated revenue of $1.5 million or $31 per square foot, according to the most recent income and expense figures.

The property

The 90 Sullivan Place parcel has frontage of 140 feet and is 100 feet deep with a total lot size of 14,000 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $6.1 million.

Development

For the tax lot building, it received its initial certificate of occupancy on January 26, 2016. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On this tax block of 90 Sullivan Place, PincusCo has identified the owners of four of the 14 commercial properties representing 85,579 square feet of the 178,014 square feet. The largest owner is E&M Associates, followed by Alex Adjmi and ACHS Management.
On the tax block, there was one new building construction project filed totaling 134,391 square feet. It is a 57-unit, 134,391-square-foot R-2 building developed by Jack Gold with plans filed November 9, 2021 and it has not been permitted yet.

The majority, or 40 percent of the 178,014 square feet of built space are industrial buildings, with retail buildings next occupying 31 percent of the space.

The borrower

The PincusCo database currently indicates that E&M Associates owned at least 33 commercial properties in New York City with 352,531 square feet and a city-determined market value of $27.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 60 percent of the 352,531 square feet of built space are walkup properties, with elevator properties next occupying 38 percent of the space. The bulk, or 74 percent of the built space, is in Manhattan, with Brooklyn next at 24 percent of the space.

Direct link to Acris document. link