ELH Mgmt. signs $15.2M refi loan with Deutsche Bank for 31 properties in Bedford Stuyvesant

ELH Mgmt. through the entity 27 Bed Stuy LLC as borrower signed a refi loan with lender Deutsche Bank through the entity DBR Investments Co. Limited valued at $15.2 million for 31 properties including the 20-unit residential walkup building (C1) at 150 Tompkins Avenue in Bedford Stuyvesant, Brooklyn, 13-unit residential walkup building (C7) at 1078 Putnam Avenue in Bedford Stuyvesant, Brooklyn, and 13-unit residential walkup building (C7) at 1076 Putnam Avenue in Bedford Stuyvesant, Brooklyn.
The deal closed on March 13, 2023 and was recorded on March 20, 2023. The 31 properties have 193,433 square feet of built space and 20,029 square feet of additional air rights according to PincusCo analysis of city data. The loan price per built square foot is $78 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 ELH Mgmt. was Larry Hirschfield. The loan is borrowed in an agreement with the nonprofit Settlement Housing Fund.

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 1078 Putnam Avenue.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Larry Hirschfield, head officer and Bridget Marachlian, agent. The business entities are Elh Mgmt. Llc and 27 Bedstuy. Llc. Out of the 31 properties, 10 with a total of 193,433 square feet of built space generated revenue of $1.5 million per year.

The property

The 1078 Putnam Avenue parcel has frontage of 78 feet and is 100 feet deep with a total lot size of 5,494 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.6 million.The most recent loan totaled $16.3 million and was provided by Walker & Dunlop on December 20, 2019.

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, $4,405 in ECB penalties, 183 housing violations, $14,045 in OATH penalties, and five housing litigations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On the tax block of 1078 Putnam Avenue, PincusCo has identified the owners of 12 of the 22 commercial properties representing 86,937 square feet of the 172,512 square feet. The largest owner is Omni New York, followed by Northeast Brooklyn Housing Development Corporation and then Moshe Kirshenbaum.
There are no active new building construction projects on this tax block.

The majority, or 53 percent of the 172,512 square feet of built space are walkup buildings, with specialty buildings next occupying 29 percent of the space.

The borrower

The PincusCo database currently indicates that Elh Mgmt. owned at least 77 commercial properties in New York City with 1,345,166 square feet and a city-determined market value of $135.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 64 percent of the 1,345,166 square feet of built space are walkup properties, with elevator properties next occupying 31 percent of the space. The bulk, or 74 percent of the built space, is in Brooklyn, with Manhattan next at 15 percent of the space.

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