Cammeby’s International signs $42M loan with Bank Leumi for two properties in Coney Island

Cammeby’s International Group through the entity Neptune South Commercial LLC as borrower signed a loan with lender Bank Leumi through the entity Bank Leumi USA valued at $42 million for two properties including the midblock office building at 614 Sheepshead Bay Road in Coney Island, Brooklyn and retail building at 2837 West 8th Street in Coney Island, Brooklyn.
The deal closed on March 10, 2022 and was recorded on March 22, 2022.The two properties have 149,146 square feet of built space and 12,675 square feet of additional air rights according to PincusCo analysis of city data. The loan price per built square foot is $281 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 Cammeby’s International Group was Avi Schron. The signatory for Bank Leumi was Roland Cablayan.

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 614 Sheepshead Bay Road.

Prior sales and revenue

The two properties with a total of 149,146 square feet of built space generated revenue of $6.2 million per year or $42 per square foot.

The property

The 614 Sheepshead Bay Road parcel has frontage of 203 feet and is 119 feet deep with a total lot size of 27,640 square feet. The lot is irregular. The zoning is C8-2 which allows for up to 2 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $28.5 million.

Violations and lawsuits

The properties were not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the properties have received one DOB violation in the last year.

Development

For the tax lot buildings, two out of the two buildings received an initial certificate of occupancy in the last ten years. On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 114,459 square feet. The largest is a new building project for a N/A-unit, 109,376-square-foot B building developed by Avi Schron with plans filed May 27, 2015 and permitted September 27, 2016. The second largest is a new building project for a N/A-unit, 5,083-square-foot B building developed by Shlomo Diel with plans filed May 28, 2015 and permitted September 27, 2016.

The neighborhood

In Coney Island, the majority, or 70 percent of the 25.1 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 10 percent of the space. In sales, Coney Island has had very little sales volume relative to other neighborhoods with $64.9 million in sales volume in the last two years. For development, Coney Island has 2.2 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Brooklyn. It had 2 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On the tax block of 614 Sheepshead Bay Road, PincusCo has identified the owners of three of the 19 commercial properties representing 181,546 square feet of the 351,470 square feet. The two identified owners are Cammeby’s International Group and New York Police Department.

The majority, or 56 percent of the 338,862 square feet of built space are office buildings, with retail buildings next occupying 28 percent of the space.

The borrower

The PincusCo database currently indicates that Cammeby’s International Group owned at least 106 tax blocks with more than 1,200 buildings and 15,555,228 square feet and a city-determined market value of $1.8 billion. (Market value is typically about 50% of actual value.) The portfolio has $1.7 billion in debt, with top three lenders as Capital One, NewPoint Real Estate Capital, and New York Community Bank respectively. Within the portfolio, the bulk, or 73 percent of the 15,555,228 square feet of built space are residential elevator properties, with residential walkup properties next occupying 19 percent of the space. The bulk, or 51 percent of the built space, is in Queens, with Brooklyn next at 31 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 614 Sheepshead Bay Road that occurred over the past 24 months.

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