Benzion Reifer, Mordechai Getz sign $19M refi for office development in Bed Stuy

Benzion Reifer and Mordechai Getz through the entity 886 Broadway LLC as borrower signed a refi loan with lender Signature Bank valued at $19 million for the development building (V1) at 886-892 Broadway in Bed Stuy, Brooklyn.
The deal closed on July 29, 2022 and was recorded on August 11, 2022. Benzion Reifer filed plans for a 47,743-square-foot office (B) building.
The owner bought the property on March 16, 2018, for $6.8 million. The signatory for Benzion Reifer and Mordechai Getz was Israel Elbogen.

The property

The 886-892 Broadway parcel has frontage of 75 feet and is 91 feet deep with a total lot size of 10,084 square feet. The lot is irregular. The zoning is C4-4L which allows for up to nan times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $286,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $2,500 in ECB penalties and $2,600 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a  47,743-square-foot office (B) building. The project was developed by Benzion Reifer with plans filed October 18, 2019 and permitted June 25, 2020.

The neighborhood

In Bed Stuy, the bulk, or 34 percent of the 53.9 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, Bed Stuy has 1.9 times the average sales volume among other neighborhoods with $637.9 million in sales volume in the last two years and is the 7th highest in Brooklyn. For development, Bed Stuy is the 10th most active neighborhood among other neighborhoods. It had 5 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 14 commercial properties representing 24,376 square feet of the 53,662 square feet. The largest owner is 906 Broadway LLC, followed by Chaskel Babad and then JEAN VINCENT of BROOKLYN COOPERATIVE FCU.
There are two active new building construction projects totaling 55,363 square feet. The largest is a N/A-unit, 47,743-square-foot B building developed by Benzion Reifer with plans filed October 18, 2019 and permitted June 22, 2020. The second largest is a 13-unit, 7,620-square-foot R-2 building developed by F Goldberger with plans filed November 25, 2020 and permitted June 28, 2022.

the majority, or 68 percent of the 53,662 square feet of built space are mixed-use buildings, with retail buildings next occupying 17 percent of the space.

The borrower

The PincusCo database currently indicates that Benzion Reifer owned at least 11 commercial properties in New York City with 164,528 square feet and a city-determined market value of $21.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 86 percent of the 164,528 square feet of built space are walkup properties, with elevator properties next occupying 14 percent of the space. The bulk, or 45 percent of the built space, is in Brooklyn, with Manhattan next at 35 percent of the space.
The PincusCo database currently indicates that Mordechai Getz owned at least two commercial properties in New York City with 53,788 square feet and a city-determined market value of $2.8 million. (Market value is typically about 50% of actual value.) The portfolio has $11.2 million in debt, borrowed from Santander Bank and Signature Bank. Within the portfolio, all identified are walkup properties. The bulk, or 60 percent of the built space, is in Bronx, with Brooklyn next at 40 percent of the space.

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