Bushburg Properties signs $26M refi loan with Kearny Bank for residential elevator in Ridgewood

Bushburg Properties through the entity The Theater Building Enterprise LLC as borrower signed a refi loan with lender Kearny Bank valued at $26 million for the midblock 50-unit residential elevator building at 55-27 Myrtle Avenue in Ridgewood, Queens.
The deal closed on March 30, 2022 and was recorded on April 14, 2022. The prior lender was Signature Bank which held debt that had an original loan amount of $23.7 million.The property has 54,166 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $480 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 owner bought the property on July 25, 2013, for $7 million. The signatory for Bushburg Properties was Abraham J. Hoffman. The signatory for Kearny Bank was Kenneth Stevenson. Bushburg is located at the same address as owner LLC. https://www.bushburg.com/

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Abraham Hoffman, head officer and Laura Vivoni, site manager. The business entity is The Theater Building Enterprise Llc. The 54,166-square-foot property generated revenue of $1.9 million or $35 per square foot, according to the most recent income and expense figures.

The property

The 55-27 Myrtle Avenue parcel has frontage of 40 feet and is 100 feet deep with a total lot size of 17,746 square feet. The lot is irregular. The zoning is C4-3A which allows for up to 3 times floor area ratio (FAR) for commercial and up to 3 times FAR for residential with inclusionary housing. The property has a 421A exemption that started in 2019.0 and expires in 2034.0. The city-designated market value for the property in 2022 is $9.6 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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on April 3, 2017. 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 Ridgewood, the bulk, or 39 percent of the 33.3 million square feet of commercial built space are 1-4 family buildings, with residential walkup buildings next occupying 23 percent of the space. In sales, Ridgewood has had very little sales volume relative to other neighborhoods with $107.5 million in sales volume in the last two years. For development, Ridgewood has had very little major development activity relative to other neighborhoods.It had 253,953 square feet of commercial and multi-family construction under development in the last two years, which represents 0.76 percent of the neighborhood’s built space.

The block

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

the majority, or 51 percent of the 109,800 square feet of built space are mixed-use buildings, with residential elevator buildings next occupying 49 percent of the space.

The borrower

The PincusCo database currently indicates that Bushburg Properties owned at least two commercial properties with 201,800 square feet and a city-determined market value of $12.3 million. (Market value is typically about 50% of actual value.) The portfolio has $28.2 million in debt, borrowed from Jovia Financial Federal Credit Union and Cross River Bank. Within the portfolio, the bulk, or 62 percent of the 201,800 square feet of built space are C5 properties, with industrial properties next occupying 38 percent of the space. They are all located in Brooklyn.

Surrounding

Within a 400-foot radius of 55-27 Myrtle Avenue, Pincusco identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on February 9, 2022 for the $537,655 renovation of 5,329-square-foot R-2 building with eight residential units at 1710 Madison Street.
One of those three items was a sale which Kevin D. Gray bought the 17,031-square-foot development site (V1) on 55-03 Myrtle Avenue for $17.5 million from Infinity Collective on May 14, 2021.
One of those three items was a loan which Kevin D. Gray borrowed $9 million from Minnesota Life Insurance Company secured by the 17,031-square-foot development site (V1) on 55-03 Myrtle Avenue on May 14, 2021.

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