Canon Hospitality Management signs $11.9M loan with Poppy Bank for hotel in Sunset Park

Canon Hospitality Management through the entity Ch Associates XII LLC as borrower signed a acquisition loan with lender Poppy Bank valued at $11.9 million for the hotel building (H3) at 833 39th Street in Sunset Park, Brooklyn.
The deal closed on October 1, 2024 and was recorded on November 6, 2024. The prior lender was Berkshire Bank which held debt that had an original loan amount of $11.9 million.The property has 48,423 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $245 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 October 1, 2024, for $20 million. The signatory for Canon Hospitality Management was Canon J. Patel. The signatory for Poppy Bank was Yvonne Caro.

The property

The hotel building in Sunset Park has 48,423 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 100 feet deep with a total lot size of 7,512 square feet. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $14.4 million. The most recent loan totaled $15.2 million and was provided by Berkshire Bank on August 1, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $150 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on November 16, 2022. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Sunset Park, The bulk, or 30 percent of the 35 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 26 percent of the space. In sales, Sunset Park has 1.6 times the average sales volume among other neighborhoods with $401.6 million in sales volume in the last two years and is the 16th highest in Brooklyn. For development, Sunset Park has had very little major development activity relative to other neighborhoods.It had -31,540 square feet of commercial and multi-family construction under development in the last two years, which represents -0.09 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 19 commercial properties representing 52,344 square feet of the 155,034 square feet. The two identified owners are Canon Hospitality Management and Tommis Zontanos.
There are no active new building construction projects on this tax block.

The majority, or 31 percent of the 155,034 square feet of built space are hotel buildings, with office buildings next occupying 31 percent of the space.

The borrower

The PincusCo database currently indicates that Canon Hospitality Management owned at least one commercial property in New York City with 48,423 square feet and a city-determined market value of $14.4 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single hotel property. It is located in Brooklyn.

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