Broadway Stages increases debt to $40M for industrial in Canarsie, up from $11.25M

Gina Argento’s Broadway Stages through the entity 570 East 108th St Realty LLC as borrower signed a refi loan with lender First Republic Bank valued at $40 million for the industrial building (E1) at 570 East 108th Street in Canarsie, Brooklyn.
The deal closed on July 8, 2022 and was recorded on July 13, 2022. The prior lender was BankUnited which held debt that had an original loan amount of $11.25 million. The property has 177,386 square feet of built space and 108,300 square feet of additional air rights for a total buildable of 285,000 square feet according to PincusCo analysis of city data. The loan price per built square foot is $225 and the price per buildable square foot is $140 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 Broadway Stages was Gina Argento. The financing includes $30 million in new debt.

The property

The 570 East 108th Street parcel has frontage of 678 feet and is 487 feet deep with a total lot size of 285,000 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $15.7 million.

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 not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Canarsie, the bulk, or 36 percent of the 14 million square feet of commercial built space are specialty buildings, with residential elevator buildings next occupying 24 percent of the space. In sales, Canarsie has had very little sales volume relative to other neighborhoods with $83.2 million in sales volume in the last two years. For development, Canarsie has had very little major development activity relative to other neighborhoods.It had 54,437 square feet of commercial and multi-family construction under development in the last two years, which represents 0.39 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the seven commercial properties representing 177,386 square feet of the 234,786 square feet. The identified owner is Broadway Stages. There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 234,786 square feet of built space are industrial buildings, with development buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Broadway Stages owned at least 111 commercial properties in New York City with 3,208,287 square feet and a city-determined market value of $332.4 million. (Market value is typically about 50% of actual value.) The portfolio has $63.7 million in debt, borrowed from Investors Bank and Lakeland Bank. Within the portfolio, the bulk, or 58 percent of the 3,208,287 square feet of built space are industrial properties, with specialty properties next occupying 24 percent of the space. The bulk, or 51 percent of the built space, is in Brooklyn, with Queens next at 48 percent of the space.

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