Equity Resource, SNL sign $7.1M refi with Extra Space Storage in Greenwood Heights

Equity Resource Investments and SNL Storage through the entity SNL Orix Third Ave, LLC as borrower signed a refi loan with lender Extra Space Storage Inc. through the entity Extra Space Capital LLC valued at $7.1 million for the storage building (E7) at 629 3rd Avenue in Greenwood Heights, Brooklyn.
The deal closed on April 5, 2024 and was recorded on July 25, 2024. The prior lender was Santander Bank which held debt that had an original loan amount of $7.6 million.The property has 29,758 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $239 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 September 28, 2017, for $4 million. The signatory for Equity Resource Investments and SNL Storage was Eggert Dagbjartsson. The signatory for Extra Space Storage Inc. was Kirk Grimshaw.

The property

The industrial building in Greenwood Heights has 29,758 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,017 square feet. The zoning is M1-2D which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $4.3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 20, 2020. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Greenwood Heights, The bulk, or 37 percent of the 16.2 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 36 percent of the space. In sales, Greenwood Heights has 1.7 times the average sales volume among other neighborhoods with $441.5 million in sales volume in the last two years and is the 15th highest in Brooklyn. For development, Greenwood Heights has 1.6 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Brooklyn. It had 1.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of seven of the 18 commercial properties representing 143,143 square feet of the 229,772 square feet. The largest owner is Aaron Jungreis, followed by Ada Torres and then Carlyle Group.
On the tax block, there were four new building construction projects totaling 88,254 square feet. The largest is a 78,076 square-foot educational (E) building submitted by Louis Greco Jr. and filed by Louis Greco Jr. with plans filed October 19, 2017 and permitted December 18, 2020. The second largest is a three-unit, 3,394 square-foot residential (R-2) building submitted by David Lin with plans filed September 23, 2022 and it has not been permitted yet.

The majority, or 49 percent of the 229,772 square feet of built space are industrial buildings, with walkup buildings next occupying 32 percent of the space.

The borrower

The PincusCo database currently indicates that Snl Storage owned at least three commercial properties in New York City with 143,254 square feet and a city-determined market value of $13 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 80 percent of the 143,254 square feet of built space are industrial properties, with development properties next occupying 20 percent of the space. The bulk, or 46 percent of the built space, is in Brooklyn, with Bronx next at 35 percent of the space.
The PincusCo database currently indicates that Equity Resource Investments owned at least two commercial properties in New York City with 101,498 square feet and a city-determined market value of $9.1 million. (Market value is typically about 50% of actual value.) The portfolio has $9.7 million in debt, borrowed from Extra Space Storage Inc.. Within the portfolio, all identified are industrial properties. The bulk, or 51 percent of the built space, is in Brooklyn, with Bronx next at 49 percent of the space.

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