GDC Properties signs $11.5M acquisition loan with KeyBank for 19-unit rental in Williamsburg

GDC Properties through the entity Peregrine Funding, LLC as borrower signed an acquisition loan with lender KeyBank valued at $11.5 million for the 19-unit 625 Driggs Avenue in Williamsburg, Brooklyn.
The deal closed on September 16, 2022 and was recorded on November 4, 2022. The prior lender was M&T Bank which held debt that had an original loan amount of $24.4 million.
The signatory for GDC Properties was William F. Ingraham IV. The signatory for KeyBank was Peter Rand.
Mavik Capital Management sold this property for $21.4 million to GDC Properties on September 14, 2022.

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 625 Driggs Avenue.

The property

PincusCo cannot determine the lot area of the 625 Driggs Avenue parcel at this time.

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 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 $5 million on this tax lot.

The block

On the tax block of 625 Driggs Avenue, PincusCo has identified the owners of three of the nine commercial properties representing 39,568 square feet of the 95,366 square feet. The two identified owners are Abraham Grunhut and Robert Vigorito.
On the tax block, there was one new building construction project filed totaling 17,985 square feet. It is a 19-unit, 17,985-square-foot R-2 building developed by Benjamin Stokes with plans filed May 24, 2017 and permitted June 1, 2018.

The majority, or 60 percent of the 30,135 square feet of built space are elevator buildings, with mixed-use buildings next occupying 26 percent of the space.

The borrower

The PincusCo database currently indicates that GDC Properties owned at least 42 commercial properties in New York City with 442,066 square feet and a city-determined market value of $153.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 68 percent of the 442,066 square feet of built space are elevator properties, with B1 properties next occupying 32 percent of the space. The bulk, or 68 percent of the built space, is in Brooklyn, with Queens next at 32 percent of the space.

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