Eliahu Nahman signs $30.2M refi with Lincoln Benefit for fee under residential project in Park Slope

Eliahu Nahman through the entity The Deermar LLC as borrower signed a refi loan with lender Lincoln Benefit Life Company through the entity Lincoln Benefit Life Company valued at $30.2 million for the fee under a ground-leased property with 68-unit residential project at 262 9th Street in Park Slope, Brooklyn.
The deal closed on May 27, 2022 and was recorded on June 16, 2022. The prior lender was Goodman Capital which held debt that had an original loan amount of $14.2 million. The property has 66,555 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $453 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 owner bought the property on July 10, 2018, for $15.5 million. The signatory for Eliahu Nahman was Eliahu Nahman. Eliahu Nahman is the owner of the ground-leased fee. The property is controlled by a ground tenant, Joseph Banda. The 99-year ground lease was executed in April 2022.

Banda and Nahman filed plans to develop 72 residential condos at this property, in April 2021.  Lincoln Benefit Life Company is based in Nebraska. In 2019 the company was acquired by Kuvare.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Joseph Banda, head officer and David Oberlander, site manager. The business entity is The Deermar Llc.

The property

The 262 9th Street parcel has frontage of 100 feet and is 92 feet deep with a total lot size of 8,260 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $7.4 million.The most recent loan totaled $16 million and was provided by Goodman Capital on April 13, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

On these lots, there is one active new building construction project for a 67-unit, 57,886-square-foot R-2 building. The project was developed by Joseph Banda with plans filed August 22, 2018 and permitted September 5, 2019.

The neighborhood

In Park Slope, the bulk, or 43 percent of the 26 million square feet of commercial built space are 1-4 family buildings, with residential walkup buildings next occupying 14 percent of the space. In sales, Park Slope has 1.3 times the average sales volume among other neighborhoods with $370.1 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, Park Slope has near average amount of major developments among other neighborhoods and is the 22nd highest in Brooklyn. It had 784,980 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 12 commercial properties representing 231,922 square feet of the 279,597 square feet. The two identified owners are Stellar Management and Joseph Banda. There are two active new building construction projects totaling 59,399 square feet. The largest is a 67-unit, 57,886-square-foot R-2 building developed by Joseph Banda with plans filed August 22, 2018 and permitted September 5, 2019. The second largest is a three-unit, 1,513-square-foot R-2 building developed by Lyle Kamesaki with plans filed October 14, 2021 and it has not been permitted yet.

The majority, or 76 percent of the 303,184 square feet of built space are residential elevator buildings, with mixed-use buildings next occupying 8 percent of the space.

The borrower

The PincusCo database currently indicates that Eliahu Nahman owned at least four commercial properties with 73,506 square feet and a city-determined market value of $12.1 million. (Market value is typically about 50% of actual value.) The portfolio has $42.2 million in debt, with top three lenders as Peapack-Gladstone Bank, Bank of Princeton, and Popular Bank respectively. Within the portfolio, the bulk, or 68 percent of the 73,506 square feet of built space are elevator properties, with mixed-use properties next occupying 28 percent of the space. They are all located in Brooklyn.

Surrounding

Within a 400-foot radius of 262 9th Street, Pincusco identified one commercial real estate item of interests occurred over the past 24 months.
It was a loan which Stellar Management borrowed $22.7 million from New York Community Bank secured by the 154-unit rental (D3) on 288 9th Street on May 21, 2021.

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