EJS Group signs $28M land loan with Signature Bank for 38-unit dev site in Lenox Hill

EJS Group through the entity Ejs 1303 Third, LLC as borrower signed a loan with lender Signature Bank valued at $28 million for a four parcel development site including 1303 Third Avenue in Lenox Hill, Manhattan.

On these lots, there is one active new building construction project for a 38-unit, 123,495-square-foot R-2 building. The project was developed by Bill Shaughnessy of EJS with plans filed May 9, 2022 and it has not been permitted yet.

The deal closed on July 11, 2022 and was recorded on July 19, 2022. The four properties have 12,600 square feet of built space and 19,053 square feet of additional air rights for a total buildable of 31,650 square feet according to PincusCo analysis of city data. The loan price per built square foot is $2,222 and the price per buildable square foot is $884 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.) Ted Segal is the founder and president of EJS Group.

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 202 East 75th Street.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Adam Koplewicz, head officer and Theodore Segal, officer. The business entity is Ejs 1303 Third, Llc.

The property

The 202 East 75th Street parcel has frontage of 42 feet and is 75 feet deep with a total lot size of 3,165 square feet. The zoning is C1-9 which allows for up to 2 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.8 million.The most recent loan totaled $16.2 million and was provided by JPMorgan Chase on October 1, 2021.
The 1307-1309 3rd Avenue parcel has frontage of 42 feet and is 75 feet deep with a total lot size of 3,165 square feet. The zoning is C1-9 which allows for up to 2 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.8 million.The most recent loan totaled $16.2 million and was provided by JPMorgan Chase on October 1, 2021.
The 200 East 75th Street parcel has frontage of 42 feet and is 75 feet deep with a total lot size of 3,165 square feet. The zoning is C1-9 which allows for up to 2 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.8 million.The most recent loan totaled $16.2 million and was provided by JPMorgan Chase on October 1, 2021.

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 $10,620 in ECB penalties and $8,170 in OATH penalties in the last year.

The block

On the tax block of 202 East 75th Street, PincusCo has identified the owners of 18 of the 33 commercial properties representing 163,512 square feet of the 288,817 square feet. The largest owner is Related Companies, followed by EJS Group and then Elad Group.
There are two active new building construction projects totaling 235,365 square feet. The largest is a 47-unit, 111,870-square-foot R-2 building developed by Sara Rubenstein with plans filed March 7, 2018 and permitted October 24, 2018. The second largest is a 38-unit, 123,495-square-foot R-2 building developed by Bill Shaughnessy with plans filed May 9, 2022 and it has not been permitted yet.

The majority, or 52 percent of the 239,033 square feet of built space are walkup buildings, with elevator buildings next occupying 38 percent of the space.

Surrounding

Within a 400-foot radius of 202 East 75th Street, Pincusco identified 12 commercial real estate items of interests occurred over the past 24 months.
Of those 12 items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on February 28, 2022 for the $646,020 renovation of 5,341-square-foot R-2 building with four residential units at 206 East 75th Street.
Of those 12 items, four were sales above $5 million totaling $85 million. The most recent of the four was Elad Group which bought the 4,320-square-foot development site (V1) on 1297 3rd Avenue and two other properties for $61 million from Premier Equities on May 16, 2022.
Of those 12 items, seven were loans above $5 million totaling $83.8 million. The most recent of the seven was Elad Group which borrowed $40.9 million from Valley National Bank secured by the 4,320-square-foot development site (V1) on 1297 3rd Avenue and two other properties on May 16, 2022.

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