Cayre Equities signs $25.3M refi for storage in East Flatbush

Cayre Equities through the entity CS Utica & Remsen LLC as borrower signed a refi loan with lender Bank Hapoalim valued at $25.3 million for the industrial building (E7) at 25 Remsen Avenue in East Flatbush, Brooklyn.
The deal closed on September 12, 2023 and was recorded on September 25, 2023. The prior lender was Goldman Sachs which held debt that had an original loan amount of $15.2 million.

The property has 111,391 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $227 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 2, 2015, for $12.9 million. The signatory for Cayre Equities was Kenneth Cayre. The signatories for Bank Hapoalim were Gerard DePoalo and Judy Barnes.

The property

The industrial building in East Flatbush has 111,391 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 377 feet and is 101 feet deep with a total lot size of 35,999 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 $14.2 million.

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 $1,250 in ECB penalties and $1,250 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on July 22, 2016. 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 East Flatbush, The bulk, or 32 percent of the 42.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 24 percent of the space. In sales, East Flatbush has had very little sales volume relative to other neighborhoods with $285.6 million in sales volume in the last two years. For development, East Flatbush has 2.3 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Brooklyn. It had 2.3 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.

The block

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

All properties are industrial.

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 $164.1 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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