FBE Limited signs $29M refi loan with Cross River Bank for new 75-unit building in Crown Heights

FBE Limited through the entity 1120 St Johns LLC as borrower signed a refi loan with lender Cross River Bank valued at $29 million for the 75-unit building at 1120 St Johns Place in Crown Heights, Brooklyn.
The deal closed on December 1, 2022 and was recorded on December 7, 2022. The prior lender was Santander Bank which held debt that had an original loan amount of $22.5 million.
The owner bought the property on February 14, 2019, for $9 million. The signatory for FBE Limited was Yehoshua Leib Fruchthandler. The signatory for Cross River Bank was Shimon Eisikowicz.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Ephraim Fruchthandler, head officer and Matis Tyberg, site manager. The business entity is 1120 St Johns Llc.

The property

The 1120 St Johns Place parcel has frontage of 100 feet and is 140 feet deep with a total lot size of 18,355 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 $740,000.The most recent loan totaled $7.6 million and was provided by Santander Bank on November 13, 2020.

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 received $3,600 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project for a 75-unit, 46,298 square-foot R-2 building. The project was developed by Yehoshua Fruchthandler with plans filed September 11, 2019 and permitted August 4, 2020.

The neighborhood

In Crown Heights, the bulk, or 38 percent of the 46.6 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 36 percent of the space. In sales, Crown Heights has 1.6 times the average sales volume among other neighborhoods with $558.5 million in sales volume in the last two years and is the 10th highest in Brooklyn. For development, Crown Heights has 2.7 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Brooklyn. It had 2.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other development buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 16 of the 36 commercial properties representing 85,810 square feet of the 153,250 square feet. The largest owner is Israel Perlmutter, followed by Shahla Tashkhisi and then Sugar Hill Capital Partners.
On the tax block, there was one new building construction project filed totaling 46,298 square feet. It is a 75-unit, 46,298-square-foot R-2 building developed by Yehoshua Fruchthandler with plans filed September 11, 2019 and permitted August 4, 2020.

The majority, or 51 percent of the 153,250 square feet of built space are walkup buildings, with mixed-use buildings next occupying 49 percent of the space.

The borrower

The PincusCo database currently indicates that FBE Limited owned at least 37 commercial properties in New York City with 1,011,267 square feet and a city-determined market value of $150.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 64 percent of the 1,011,267 square feet of built space are elevator properties, with rental condo properties next occupying 18 percent of the space. The bulk, or 78 percent of the built space, is in Brooklyn, with Manhattan next at 14 percent of the space.

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