Camba signs $27.5M construction loan property including 57-unit project in Bed Stuy

Camba through the entity Chv 1038 Broadway Housing Development Fund Corporation as borrower signed a new construction loan with lender Bank of America and NYS Homeless Housing and Assistance valued at $27.5 million for construction including the midblock, 57-unit project at 1038 Broadway in Bed Stuy, Brooklyn.
The deal closed on February 10, 2022 and was recorded on March 10, 2022. The property has 3,480 square feet of built space and 28,924 square feet of additional air rights for a total buildable of 32,408 square feet according to PincusCo analysis of city data.
The signatory for Camba was Joanne M. Oplustil. The signatory for Bank of America and NYS Homeless Housing and Assistance was Lisa Awaya and Dana Greenberg.

Prior sales and revenue

The 3,480-square-foot property generated revenue of $122,635 or $35 per square foot, according to the most recent income and expense figures.

The property

The 1038 Broadway parcel has frontage of 79 feet and is 83 feet deep with a total lot size of 8,102 square feet. The lot is irregular. The zoning is C4-4L which allows for up to nan times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $457,000.The most recent loan totaled $118.8 million and was provided by NYS Dormitory Authority on December 30, 2020.

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 $330 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 57-unit, 36,767-square-foot R-2 building. The project was developed by Joanne Oplustil with plans filed March 4, 2020 and it has not been permitted yet.

The neighborhood

In Bed Stuy, the bulk, or 38 percent of the 92.5 million square feet of built space are 1-4 family buildings, with residential elevator buildings next occupying 20 percent of the space. In sales, Bed Stuy has 1.5 times the average sales volume among other neighborhoods with $417.3 million in sales volume in the last two years and is the 6th highest in Brooklyn. For development, Bed Stuy is the 8th 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 5 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the 10 commercial properties representing 9,722 square feet of the 115,635 square feet. The two identified owners are Andreas Steiner and Brookdale Hospital Medical Center. There are two active new building construction projects totaling 103,020 square feet. The largest is a 93-unit, 66,253-square-foot M building developed by George Kelesidis with plans filed September 12, 2012 and permitted April 6, 2018. The second largest is a 57-unit, 36,767-square-foot R-2 building developed by Camba with plans filed March 4, 2020 and it has not been permitted yet.

The majority, or 41 percent of the 197,257 square feet of built space are 1-4 family buildings, with residential elevator buildings next occupying 37 percent of the space.

Surrounding

Within a 400-foot radius of 1038 Broadway, Pincusco identified four commercial real estate items of interests occurred over the past 24 months.
Of those four items, two were for major renovation including a certificate of occupancy change. They were two initial temporary certificate of occupancy issuances for projects that initially costed $1.8 million. The most recent of these two items was the temporary certificate of occupancy on January 28, 2021 for a 4,623-square-foot R-2 building with seven residential units at 900 Willoughby Avenue.
Of those four items, two were loans above $5 million totaling $28.5 million. The most recent of the two was Simon Kaufman which borrowed $6.5 million from Berkadia Commercial Mortgage secured by the 10,727-square-foot, 11-unit rental (C7) on 893 Willoughby Avenue on January 13, 2021.

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