Eric Miller signs $14.3M refi for two elevator rentals in Prospect Lefferts Gardens

Eric Miller through the entity Beekman Flats LLC as borrower signed a refi loan with lender New York Community Bank through the entity New York Community Bank valued at $14.3 million for two residential elevator properties including the midblock 61-unit residential elevator building at 2111 Beekman Place in Prospect Lefferts Gardens, Brooklyn and midblock 56-unit residential elevator building at 2101 Beekman Place in Prospect Lefferts Gardens, Brooklyn.
The deal closed on March 21, 2022 and was recorded on March 29, 2022. The prior lender was New York Community Bank which held debt that had an original loan amount of $12.4 million. The two properties have 82,284 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $174 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 Eric Miller was Eric Miller. The signatory for New York Community Bank was Alan L. Kaufman.

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 2111 Beekman Place.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Yechiel Weinberger, head officer. The business entity is Beekman Flats Llc. The two properties with a total of 82,284 square feet of built space generated revenue of $1.8 million per year or $22 per square foot.

The property

The 2111 Beekman Place parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 square feet. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.9 million.

Violations and lawsuits

The properties were not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the properties have received two DOB violations, 50 housing violations, and $330 in OATH penalties 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 neighborhood

In Prospect Lefferts Gardens, the bulk, or 42 percent of the 16.2 million square feet of commercial built space are residential elevator buildings, with 1-4 family buildings next occupying 26 percent of the space. In sales, Prospect Lefferts Gardens has the 44th highest sale turnover among other neighborhoods in Brooklyn with $11.1 million in sales volume in the last two years. For development, Prospect Lefferts Gardens has had very little major development activity relative to other neighborhoods.It had 175,880 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

The block

On the tax block of 2111 Beekman Place, PincusCo has identified the owners of 16 of the 61 commercial properties representing 1,304,029 square feet of the 2,373,985 square feet. The largest owner is Moshe Drizin, followed by Eric Miller and then Pinnacle Group. There is one active new building construction project totaling 227,297 square feet.

The majority, or 82 percent of the 2.7 million square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 9 percent of the space.

The borrower

The PincusCo database currently indicates that Eric Miller owned at least 49 commercial properties with 2,743,094 square feet and a city-determined market value of $176.2 million. (Market value is typically about 50% of actual value.) The portfolio has $413.7 million in debt, with top three lenders as New York Community Bank, Sterling National Bank, and Santander Bank respectively. Within the portfolio, the bulk, or 72 percent of the 2,743,094 square feet of built space are residential elevator properties, with residential walkup properties next occupying 28 percent of the space. The bulk, or 75 percent of the built space, is in Brooklyn, with Bronx next at 18 percent of the space.

Surrounding

Within a 400-foot radius of 2111 Beekman Place, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
Of those five items, five were loans above $5 million totaling $59.1 million. The most recent of the five was Eric Miller which borrowed $19.5 million from New York Community Bank secured by the 50,226-square-foot, 59-unit rental (D7) on 11 Midwood Street and one other property on December 29, 2021.

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