Food Bazaar Supermarket affiliate signs $44.9M acquisition loan with ACORE Capital for five properties in East New York

Food Bazaar Supermarket and Bogopa Service Corp. through the entity 2784 Linden LLC as borrower signed an acquisition loan with lender ACORE Capital through the entity Acore Capital Mortgage valued at $44.9 million for five properties including the specialty building (J8) at 2770 Linden Boulevard in East New York, Brooklyn, development building (V1) at N/A Loring Avenue in East New York, Brooklyn, and industrial building (G7) at N/A Linden Boulevard in East New York, Brooklyn.
The deal closed on July 17, 2023 and was recorded on July 27, 2023. The prior lender was Bank of America which held debt that had an original loan amount of $19.1 million.The five properties have 69,178 square feet of built space and 398,934 square feet of additional air rights for a total buildable of 468,293 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $649 and the price per buildable square foot is $95 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 Food Bazaar Supermarket and Bogopa Service Corp. was Edward Suh. The signatory for ACORE Capital was David Cordova. The Bank of America loan with an original 2009 principal of $19.1 million was fully paid off, not assigned.

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 2770 Linden Boulevard.

The property

The specialty building in East New York has 69,178 square feet of built space and 398,934 square feet of additional air rights for a total buildable of 468,293 square feet according to a PincusCo analysis of city data. The parcel has frontage of 450 feet and is 269 feet deep with a total lot size of 165,141 square feet. The lot is irregular. The zoning is C4-1 which allows for up to 1 times floor area ratio (FAR) for commercial and up to 1.25 times FAR for residential. The city-designated market value for the property in 2022 is $21 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations 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 neighborhood

In East New York, The bulk, or 40 percent of the 44.5 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 21 percent of the space. In sales, East New York has 2.5 times the average sales volume among other neighborhoods with $872.8 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, East New York is the 5th most active neighborhood among other neighborhoods. It had 4.7 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.

The block

There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 69,178 square feet of built space are specialty buildings, with industrial buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Bogopa Service Corp. owned at least one commercial property in New York City with 81,740 square feet and a city-determined market value of $6.3 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Brooklyn.
The PincusCo database currently indicates that Food Bazaar Supermarket owned at least one commercial property in New York City with 81,740 square feet and a city-determined market value of $6.3 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Brooklyn.

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