Coltown Properties signs $10.7M loan modification for two walkups in Brooklyn

Coltown Properties signed two loan modification agreements with New York Community Bank with $10.7 in debt for two walkup properties in Brooklyn.

In the first, Coltown Properties through the entity 1202 Avenue K LLC as borrower signed a refi loan with lender New York Community Bank valued at $5.7 million for the 38-unit residential walkup building (C1) at 1202-1212 Avenue K in Midwood, Brooklyn.
In the second, Coltown Properties through the entity 2391 Bedford Avenue LLC as borrower signed a refi loan with lender New York Community Bank through the entity New York Community Bank valued at $5 million for the 39-unit residential walkup building (C1) at 2391 Bedford Avenue in Flatbush, Brooklyn.

The deals closed on May 1, 2022 and were recorded on November 25, 2022. The prior lenders were New York Community Bank. The signatory for Coltown Properties was Steven Neuman. The signatory for New York Community Bank was John Feijoo. This is a mortgage modification, which states the interest rate is 3.125 percent and there are pre-payment penalties starting at 4% of the outstanding balance. In addition, there is an adjustable rate period from May 1, 2027 to March 31, 2029, which is 275 bps over prime, with the rate between 3.125% and 16%.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Steven Gewirtz, head officer. The business entity is 1202 Avenue K Llc. The 36,000-square-foot property generated revenue of $696,063 or $19 per square foot, according to the most recent income and expense figures.

The property

The 1202-1212 Avenue K parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received 19 housing violations and $50 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

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

All properties are walkup.

The borrower

The PincusCo database currently indicates that Coltown Properties owned at least 10 commercial properties in New York City with 653,159 square feet and a city-determined market value of $54.9 million. (Market value is typically about 50% of actual value.) The portfolio has $94.6 million in debt, with top three lenders as Berkadia Commercial Mortgage, ConnectOne Bank, and Signature Bank respectively. Within the portfolio, the bulk, or 92 percent of the 653,159 square feet of built space are elevator properties, with retail properties next occupying 5 percent of the space. The bulk, or 70 percent of the built space, is in Manhattan, with Brooklyn next at 30 percent of the space.

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