FBE Limited signs $30.8M refi with JLL for 119-unit rental in Brownsville

FBE Limited through the entity FBE Kings Highway LLC as borrower signed a refi loan with lender JLL through the entity JLL Real Estate Capital, LLC valued at $30.8 million for the 119-unit residential elevator building (D7) at 9720 Kings Highway in Brownsville, Brooklyn.
The deal closed on February 21, 2024 and was recorded on March 13, 2024. The prior lender was Santander Bank which held debt that had an original loan amount of $16 million.
The property has 113,398 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $271 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 November 9, 2015, for $21.4 million. The signatory for FBE Limited was Abraham Fruchthandler. The signatory for JLL was Rhonda D. Peare.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Ephraim Fruchthandler, head officer and Abe Pentelnik, agent. The business entity is Mp 9720 Llc.

The property

The residential elevator building with 119 residential units in Brownsville has 113,398 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 250 feet and is 110 feet deep with a total lot size of 23,500 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 $13.1 million. The most recent loan totaled $16 million and was provided by Signature Bank on January 12, 2021.

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 $1,250 in ECB penalties, 19 housing violations, and $1,300 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 $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of three of the five commercial properties representing 204,039 square feet of the 212,189 square feet. The largest owner is Urbane, followed by FBE Limited and then Dovie Sperlin.
There are no active new building construction projects on this tax block.

The majority, or 86 percent of the 212,189 square feet of built space are elevator buildings, with walkup buildings next occupying 10 percent of the space.

The borrower

The PincusCo database currently indicates that FBE Limited owned at least 30 commercial properties with 850 residential units in New York City with 802,558 square feet and a city-determined market value of $116.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 75 percent of the 802,558 square feet of built space are elevator properties, with walkup properties next occupying 11 percent of the space. The bulk, or 77 percent of the built space, is in Brooklyn, with Manhattan next at 18 percent of the space.

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