David Bawabeh, Morris Bawabeh sign $80.8M refi for three properties in Ozone Park

David Bawabeh and Morris Bawabeh through the entity Jsb Realty No. 2 LLC as borrower signed a refi loan with lender Signature Bank valued at $80.8 million for three retail properties including the mixed-use building (K4) at 78-04 South Conduit Avenue in Ozone Park, Queens, retail building (K2) at 135-25 79th Street in Ozone Park, Queens, and retail building (K1) at 133-35 79th Street in Ozone Park, Queens.
The deal closed on January 31, 2023 and was recorded on February 1, 2023. The prior lender was Signature Bank which held debt that had an original loan amount of nan.The three properties have 252,064 square feet of built space and 39,555 square feet of additional air rights according to PincusCo analysis of city data. The loan price per built square foot is $320 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 David Bawabeh and Morris Bawabeh was David Bawabeh and Morris Bawabeh. The signatory for Signature Bank was Paul Kotronis.

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 78-04 South Conduit Avenue.

Prior sales and revenue

The three properties with a total of 252,064 square feet of built space generated revenue of $7.2 million per year or $29 per square foot.

The property

The 78-04 South Conduit Avenue parcel has frontage of 235 feet and is 663 feet deep with a total lot size of 140,971 square feet. The lot is irregular. The zoning is R4 which allows for up to 0.75 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $16.3 million.

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 $2,570 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the three buildings received a 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 Ozone Park, the bulk, or 28 percent of the 5.4 million square feet of commercial built space are mixed-use buildings, with industrial buildings next occupying 22 percent of the space. In sales, Ozone Park has the 29th highest sale turnover among other neighborhoods in Queens with $64.6 million in sales volume in the last two years. For development, Ozone Park has had very little major development activity relative to other neighborhoods.It had 109,661 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

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

all properties are mixed-use.

The borrower

The PincusCo database currently indicates that Morris Bawabeh owned at least nine commercial properties in New York City with 126,182 square feet and a city-determined market value of $13.7 million. (Market value is typically about 50% of actual value.) The portfolio has $36.1 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 50 percent of the 126,182 square feet of built space are retail properties, with specialty properties next occupying 37 percent of the space. They are all located in Brooklyn.
The PincusCo database currently indicates that David Bawabeh owned at least four commercial properties in New York City with 191,554 square feet and a city-determined market value of $33 million. (Market value is typically about 50% of actual value.) The portfolio has $69.2 million in debt, with top three lenders as Interaudi Bank, Signature Bank, and OceanFirst Bank respectively. Within the portfolio, the bulk, or 97 percent of the 191,554 square feet of built space are specialty properties, with development properties next occupying 3 percent of the space. The bulk, or 65 percent of the built space, is in Brooklyn, with Queens next at 35 percent of the space.

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