Eric Miller’s Parkway Realty signs $47M refi with New York Community for 389 units in Brooklyn

Eric Miller’s Parkway Realty Associates signs $47 million in refi loans with New York Community Bank for 389 units in Brooklyn in five separate transactions with a total of seven buildings.

In the largest, Parkway Realty Associates through the entity Uni2532 LLC as borrower signed a refi loan with lender New York Community Bank through the entity New York Community Bank valued at $13.5 million for two residential walkup properties including the midblock 58-unit residential walkup building at 2542 University Avenue in Fordham Manor, Bronx and midblock 56-unit residential walkup building at 2532 University Avenue in Fordham Manor, Bronx.
The deal closed on May 9, 2022 and was recorded on May 24, 2022. The prior lender was New York Community Bank which held debt that had an original loan amount of $6.1 million.The two properties have 85,460 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $157 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 Parkway Realty Associates 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 2542 University Avenue.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Yechiel Weinberger, head officer. The business entity is Uni2542 Llc. The two properties with a total of 85,460 square feet of built space generated revenue of $1.6 million per year or $19 per square foot.

The property

The 2542 University Avenue parcel has frontage of 125 feet and is 100 feet deep with a total lot size of 12,500 square feet. 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 $2.4 million.

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 two DOB violations, 41 housing violations, $2,100 in OATH penalties, and three 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 neighborhood

In Fordham Manor, the bulk, or 32 percent of the 21.6 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 30 percent of the space. In sales, Fordham Manor has had very little sales volume relative to other neighborhoods with $157.8 million in sales volume in the last two years. For development, Fordham Manor has near average amount of major developments among other neighborhoods and is the 9th highest in Bronx. It had 849,436 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On the tax block of 2542 University Avenue, PincusCo has identified the owners of six of the 15 commercial properties representing 279,962 square feet of the 530,642 square feet. The largest owner is Finkelstein, Timberger, East Real Estate, followed by Prana Investments and then Alex Hay. There are no active new building construction projects on this tax block.

The majority, or 60 percent of the 602,127 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 27 percent of the space.

Surrounding

Within a 400-foot radius of 2542 University Avenue, Pincusco identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on April 5, 2021 for the $1,000,000 renovation of 99,463-square-foot I-2 building with zero residential units at 2561 University Avenue.
One of those three items was a sale which Parkway Realty Associates, Eric Miller, and Yechiel Weinberger bought the 78,000-square-foot, 69-unit rental (C1) on 2518 Webb Avenue for $8 million from Roseann Manginelli on April 26, 2022.
One of those three items was a loan which Parkway Realty Associates borrowed $10.6 million from New York Community Bank secured by the 48,000-square-foot, 69-unit rental (C1) on 2518 Webb Avenue and one other property on April 26, 2022.

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