CBRE Capital Markets signs $106M loan for Amazon-leased warehouse in East New York

CBRE Capital Markets through the entity Uslp Brooklyn Logistics Center, Lp as borrower signed a initial loan with lender Bank of America valued at $106.1 million for three properties including the industrial building (E1) at 578 Cozine Avenue in East New York, Brooklyn, industrial building (E1) at 554 Cozine Avenue in East New York, Brooklyn, and development building (V1) at 771 Montauk Avenue in East New York, Brooklyn.
The deal closed on July 18, 2022 and was recorded on August 2, 2022. The prior lender was JPMorgan Chase which held debt that had an original loan amount of $45.2 million. The three properties have 211,098 square feet of built space and 22,000 square feet of additional air rights for a total buildable of 216,000 square feet according to PincusCo analysis of city data. The loan price per built square foot is $502 and the price per buildable square foot is $491 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 CBRE Capital Markets was Ty Gerschick. The signatory for Bank of America was Schenelle Villacorta.

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 578 Cozine Avenue.

Prior sales and revenue

Out of the three properties, two with a total of 211,098 square feet of built space generated revenue of $6.3 million per year.

The property

The 578 Cozine Avenue parcel has frontage of 200 feet and is 485 feet deep with a total lot size of 97,000 square feet. The lot is irregular. 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 $11.1 million.The most recent loan totaled $45.2 million and was provided by JPMorgan Chase on April 1, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received three DOB violations and $3,135 in OATH penalties in the last year.

Development

For the tax lot buildings, three out of the three buildings received an initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In East New York, the bulk, or 40 percent of the 44.6 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 21 percent of the space. In sales, East New York has the 3rd highest sale turnover among other neighborhoods in the city with $2.6 billion in sales volume in the last two years. For development, East New York has 2.8 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Brooklyn. It had 2.9 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 the tax block of 578 Cozine Avenue, PincusCo has identified the owner of the one commercial property that spans that spans 105,549 square feet on the block.The identified owner is CBRE Capital Markets. There are no active new building construction projects on this tax block.

All properties are industrial.

The borrower

The PincusCo database currently indicates that CBRE Capital Markets owned at least three commercial properties in New York City with 211,098 square feet and a city-determined market value of $22.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 211,098 square feet of built space are industrial properties, with development properties next occupying 0 percent of the space. They are all located in Brooklyn.

Direct link to Acris document. link