Brookfield signs $438.1M construction loan with Athene for 921-unit development in Mott Haven

Brookfield Properties through the entity BOP 101 Lincoln Avenue LLC as borrower signed a new construction loan with lender Athene Annuity And Life Company, an affiliate of Apollo Global Management, valued at $438.1 million for the 921-unit residential elevator building at 101 Lincoln Avenue in Mott Haven, Bronx.
The deal closed on March 8, 2022 and was recorded on March 16, 2022. The prior lender was HSBC Bank which held debt that had an original loan amount of $96.2 million.
The owner bought the property on September 5, 2018, for $125.4 million. The signatory for Brookfield Properties was Noah Daniels. The signatory for Athene Annuity And Life Company was Michael Lotito.

The property

The 101 Lincoln Avenue parcel has frontage of 333 feet and is 430 feet deep with a total lot size of 127,721 square feet. The lot is irregular. The zoning is M1-3/R8 which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 6.02 times FAR for residential. The city-designated market value for the property in 2022 is $16.4 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received four DOB violations, $58,125 in ECB penalties in the last year.

Development

On these lots, there is one active new building construction project for a 921-unit, 781,036-square-foot R-2 building. The project was developed by Dan Berger with plans filed September 3, 2015 and it has not been permitted yet.

The neighborhood

In Mott Haven, the bulk, or 38 percent of the 43.4 million square feet of built space are residential elevator buildings, with industrial buildings next occupying 23 percent of the space. In sales, Mott Haven has 2.7 times the average sales volume among other neighborhoods with $744 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven is the 7th most active neighborhood among other neighborhoods. It had 4.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

There is one active new building construction project totaling 781,036 square feet. It is a 921-unit, 781,036-square-foot R-2 building developed by Dan Berger with plans filed September 3, 2015 and it has not been permitted yet.

The borrower

The PincusCo database currently indicates that Brookfield Properties owned at least 44 commercial properties with 39,602,166 square feet and a city-determined market value of $5.8 billion. (Market value is typically about 50% of actual value.) The portfolio has $8.5 billion in debt, with top three lenders as Wells Fargo, JPMorgan Chase, and Blackstone Mortgage Trust respectively. Within the portfolio, the bulk, or 87 percent of the 39,602,166 square feet of built space are office properties, with residential elevator properties next occupying 10 percent of the space. The bulk, or 86 percent of the built space, is in Manhattan, with Brooklyn next at 13 percent of the space.

Surrounding

Within a 400-foot radius of 101 Lincoln Avenue, PincusCo identified six commercial real estate items of interests occurred over the past 24 months.
Of those six items, two were in new building development. There were two new building permits. The most recent of these two items was a permit on October 28, 2021 for a 165,391-square-foot R-2 building with 200 residential units at 2413 Third Avenue.
Of those six items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on October 4, 2021 for the $432,500 renovation of 32,823-square-foot M building with zero residential units at 2403 3rd Avenue.
Of those six items, two were sales above $5 million totaling $75.5 million. The most recent of the two was RXR Realty which bought the 16,205-square-foot, one-unit industrial (F9) on 9 Bruckner Boulevard for $10.8 million from Somerset Partners on March 20, 2020.
One of those six items was a loan which ZG Capital Partners borrowed $44.8 million from Ladder Capital secured by the 154,380-square-foot development site (V1) on 2415 3rd Avenue and one other property on January 9, 2020.

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