Dov Lebovits signs $25M refi with Dime Community Bank for two office properties in Brooklyn

Dov Lebovits through the entity Lebgutt Realty, LLC as borrower signed a refi loan with lender Dime Community Bank valued at $25 million for two office properties including the office building (O7) at 16 Sumner Place in Bushwick, Brooklyn and office building (O5) at 2557 Nostrand Avenue in Flatlands, Brooklyn.
The deal closed on January 3, 2023 and was recorded on January 10, 2023. The prior lender was Dime Community Bank which held debt that had an original loan amount of $10 million. The two properties have 50,148 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $498 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 Dov Lebovits was Dov Lebovits. The signatory for Dime Community Bank was Mario Colon.

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 16 Sumner Place.

Prior sales and revenue

The two properties with a total of 50,148 square feet of built space generated revenue of $2 million per year or $40 per square foot.

The property

The 16 Sumner Place parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,000 square feet. The zoning is C4-3 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $3.1 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 one DOB violation, $13,780 in ECB penalties, and $14,130 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the two 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 Bushwick, the bulk, or 44 percent of the 33.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 18 percent of the space. In sales, Bushwick has 3 times the average sales volume among other neighborhoods with $1 billion in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Bushwick has 1.5 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Brooklyn. It had 1.6 million 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 the tax block of 16 Sumner Place, PincusCo has identified the owners of five of the 15 commercial properties representing 70,285 square feet of the 260,176 square feet. The largest owner is Michael Whalen, followed by Mordechai Retek and then Linda Vera-Benitez.
On the tax block, there was one new building construction project filed totaling 21,275 square feet. It is a 61-unit, 21,275-square-foot R-1 building developed by Moris Yeroshalmi with plans filed October 4, 2016 and permitted March 9, 2018.

The majority, or 26 percent of the 201,678 square feet of built space are retail buildings, with hotel buildings next occupying 23 percent of the space.

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