Diversified Healthcare signs $19.1M initial loan for two medical buildings in Dyker Heights

Diversified Healthcare Trust through the entity The Lsmd Fund Propco LLC as borrower signed an initial loan with lender Wells Fargo and Bank of America valued at $19.1 million for two specialty buildings including the specialty building at 6300 8th Avenue in Dyker Heights, Brooklyn and specialty building at 6324 8th Avenue in Dyker Heights, Brooklyn.
The deal closed on January 28, 2022 and was recorded on February 8, 2022.
The two properties have 74,401 square feet of built space and 79,900 square feet of additional air rights for a total buildable of 144,742 square feet according to PincusCo analysis of city data. The loan price per built square foot is $257 and the price per buildable square foot is $132 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 Diversified Healthcare Trust was Richard W. Siedel Jr..
Over the past five years, there have been 4 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. There were 4 renovation/alteration projects (A2) applied for with a total estimated value of $459,600.
Diversified Healthcare Trust is affiliated with and managed by the RMR Group, a public company. This property is occupied by the Maimonides Cancer Center.
In Dyker Heights, the majority, or 62 percent of the 20.3 million square feet of built space are 1-4 family buildings, with mixed-use buildings next occupying 10 percent of the space. In sales, Dyker Heights has had very little sales volume relative to other neighborhoods with $62.3 million in sales volume in the last two years. For development, Dyker Heights has had very little major development activity relative to other neighborhoods.It had 303,035 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.
On the tax block, the majority, or 62 percent of the 392,108 square feet of built space are office buildings, with specialty buildings next occupying 19 percent of the space.
Within a 400-foot radius of 6300 8th Avenue, PincusCo identified two commercial real estate items of interests occurred over the past 24 months.
One of those two items was a sale which Watermark Capital Group bought the industrial (G7) on 6128 8th Avenue for $11.5 million from Wing Fung Chau on December 10, 2021.
One of those two items was a loan which John Giuffre borrowed $19.3 million from Bank of China secured by the 22,000-square-foot, one-unit retail building (K1) on 6301 8th Avenue and one other property on December 11, 2020.

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