Bushburg Properties signs $16.5M refi for two properties in East Williamsburg

Bushburg Properties through the entity Fptk LLC as borrower signed a refi loan with lender Cross River Bank valued at $16.5 million for two properties with 60 residential units including the 45-unit residential elevator building (D6) at 1087 Flushing Avenue in East Williamsburg, Brooklyn and 15-unit property at 125 Knickerbocker Avenue in East Williamsburg, Brooklyn.
The deal closed on June 28, 2023 and was recorded on July 12, 2023. The prior lender was Customers Bank which held debt that had an original loan amount of $16.1 million.The two properties have 99,532 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $165 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 Bushburg Properties was Abraham J. Hoffman. The signatory for Cross River Bank was Allan J. Weiss.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 1087 Flushing Avenue.

Prior sales and revenue

The two properties with a total of 99,532 square feet of built space generated revenue of $2.5 million per year or $25 per square foot.

The property

The residential elevator building with 45 residential units in East Williamsburg has 99,532 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 125 feet and is 135 feet deep with a total lot size of 16,913 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 $9.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received two DOB violations and $820 in OATH penalties in the last year.

Development

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

There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 99,532 square feet of built space are elevator buildings, with specialty buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Bushburg Properties owned at least four commercial properties with 423 residential units in New York City with 492,766 square feet and a city-determined market value of $54.2 million. (Market value is typically about 50% of actual value.) The portfolio has $196.7 million in debt, with top three lenders as Valley National Bank, Webster Bank, and Kearny Bank respectively. Within the portfolio, the bulk, or 67 percent of the 492,766 square feet of built space are elevator properties, with walkup properties next occupying 25 percent of the space. The bulk, or 89 percent of the built space, is in Brooklyn, with Queens next at 11 percent of the space.

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