Daten Group signs $46.9M refi loan with H.I.G. Capital for 135-unit building in Clinton Hill

Daten Group through the entity Cad Waverly LLC as borrower signed a refi loan with lender H.I.G. Capital through the entity H.I.G. Realty Financing II, LLC valued at $46.9 million for the 135-unit building (E9) at 540 Waverly Avenue in Clinton Hill, Brooklyn.
On the lot, there is one active new building construction project for a 135-unit, 96,095 square-foot R-2 building. The project was developed by David Ennis with plans filed December 20, 2019 and permitted September 24, 2020.
The deal closed on December 28, 2022 and was recorded on January 24, 2023.
The owner bought the property on December 18, 2019, for $17.2 million. The signatory for Daten Group was David Ennis. The signatory for H.I.G. Capital was Michael Mestel.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes David Ennis, head officer and Stephanie Knight, agent. The business entities are Choice New York Management and Cad Waverly Llc.

The property

The 540 Waverly Avenue parcel has frontage of 219 feet and is 218 feet deep with a total lot size of 24,055 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 $1.3 million.The most recent loan totaled $38 million and was provided by SL Green Realty on December 18, 2019.

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 $11,250 in ECB penalties and $11,250 in OATH penalties in the last year.

The neighborhood

In Clinton Hill, the bulk, or 33 percent of the 10.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Clinton Hill has near average sales volume among other neighborhoods with $328.9 million in sales volume in the last two years and is the 22nd highest in Brooklyn. For development, Clinton Hill has had very little major development activity relative to other neighborhoods.It had 549,150 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

On this tax block, PincusCo has identified the owners of five of the 13 commercial properties representing 246,610 square feet of the 365,049 square feet. The largest owner is Bonjour Capital, followed by Marc Goodman and then Larry Malitzky.
On the tax block, there were two new building construction projects totaling 106,427 square feet. The largest is a 135-unit, 96,095-square-foot R-2 building developed by David Ennis with plans filed December 20, 2019 and permitted September 24, 2020. The second largest is a 10-unit, 10,332-square-foot R-2 building developed by Uval Golan with plans filed September 4, 2014 and it has not been permitted yet.

the majority, or 59 percent of the 286,408 square feet of built space are elevator buildings, with specialty buildings next occupying 26 percent of the space.

The borrower

The PincusCo database currently indicates that Daten Group owned at least three commercial properties in New York City with 128,502 square feet and a city-determined market value of $8.2 million. (Market value is typically about 50% of actual value.) The portfolio has $98 million in debt, with top three lenders as Mack Real Estate Group, SL Green Realty, and Israel Discount Bank respectively. Within the portfolio, the bulk, or 67 percent of the 128,502 square feet of built space are D6 properties, with elevator properties next occupying 33 percent of the space. They are all located in Brooklyn.

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