Cayre Equities signs $24.2M refi for storage in Crown Heights

Cayre Equities through the entity 1260 Atlantic Avenue LLC as borrower signed a refi loan with lender Bank Hapoalim through the entity Bank Hapoalim B.M valued at $24.2 million for the storage building (E7) at 1260 Atlantic Avenue in Crown Heights, Brooklyn.
The deal closed on September 12, 2023 and was recorded on September 19, 2023. The prior lender was Bank Hapoalim which held debt that had an original loan amount of $25.2 million.

The property has 92,191 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $263 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 January 29, 2019, for $23.5 million. The signatory for Cayre Equities was Kenneth Cayre. The signatory for Bank Hapoalim was Gerard DePoalo and Judy Barnes.

The property

The industrial building in Crown Heights has 92,191 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 306 feet and is 100 feet deep with a total lot size of 30,674 square feet. 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 $10.6 million. The most recent loan totaled $25.2 million and was provided by Bank Hapoalim on June 5, 2020.

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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on February 5, 2021. 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 Crown Heights, The bulk, or 39 percent of the 46.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 36 percent of the space. In sales, Crown Heights has 1.5 times the average sales volume among other neighborhoods with $536.8 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, Crown Heights has 3.2 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Brooklyn. It had 3.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 11 of the 22 commercial properties representing 233,200 square feet of the 278,877 square feet. The largest owner is Yosi Cohen, followed by Workable City Development and then Seung H. Kim.
There are no active new building construction projects on this tax block.

The majority, or 36 percent of the 278,877 square feet of built space are elevator buildings, with industrial buildings next occupying 33 percent of the space.

The borrower

The PincusCo database currently indicates that Cayre Equities owned at least 10 commercial properties in New York City with 531,040 square feet and a city-determined market value of $73.9 million. (Market value is typically about 50% of actual value.) The portfolio has $139.9 million in debt, with top three lenders as Bank Hapoalim, Santander Bank, and TD Bank respectively. Within the portfolio, the bulk, or 82 percent of the 531,040 square feet of built space are industrial properties, with specialty properties next occupying 9 percent of the space. The bulk, or 47 percent of the built space, is in Manhattan, with Brooklyn next at 29 percent of the space.

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