Breaking Ground signs $14.1M rehab construction loan for 180-unit rental in Chelsea

Breaking Ground through the entity Breaking Ground III Housing Development as borrower signed a rehab construction loan with lender Low Income Investment Fund valued at $14.1 million for the 180-unit residential elevator building (D9) at 202 West 24th Street in Chelsea, Manhattan.
The deal closed on June 28, 2023 and was recorded on July 20, 2023. The property has 68,879 square feet of built space and 43,529 square feet of additional air rights for a total buildable of 112,465 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $204 and the price per buildable square foot is $125 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 Breaking Ground was David Beer. The signatory for Low Income Investment Fund was Molly Anderson.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Brenda Rosen, head officer and Dave Beer, officer. The business entities are Breaking Ground Management and Chelsea Residence Lp. The 68,879-square-foot property generated revenue of $2.4 million or $36 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 180 residential units in Chelsea has 68,879 square feet of built space and 43,529 square feet of additional air rights for a total buildable of 112,465 square feet according to a PincusCo analysis of city data. The parcel has frontage of 113 feet and is 98 feet deep with a total lot size of 18,682 square feet. The lot is irregular. 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 $14.4 million.

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 $312 in ECB penalties, 88 housing violations, $412 in OATH penalties, and three housing litigations in the last year.


There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of seven of the 17 commercial properties representing 83,339 square feet of the 417,562 square feet. The largest owner is Westfair Property Management, followed by Viking Management and then Kenneth Rosenblum.
On the tax block, there was one new building construction project filed totaling 132,694 square feet. It is a 190-unit, 132,694 square-foot residential (R-2) building submitted by JJ Operating and filed by William Jemal with plans filed July 8, 2021 and permitted March 21, 2022.

The majority, or 58 percent of the 417,562 square feet of built space are elevator buildings, with retail buildings next occupying 13 percent of the space.

The borrower

The PincusCo database currently indicates that Breaking Ground owned at least two commercial properties with 681 residential units in New York City with 571,574 square feet and a city-determined market value of $57.5 million. (Market value is typically about 50% of actual value.) The portfolio has $349.3 million in debt, with top three lenders as City of New York, NYS Housing Finance Agency, and NYC Department of Housing Preservation and Development respectively. Within the portfolio, all identified are elevator properties. They are all located in Brooklyn.

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