GDC Properties signs $17.7M refi loan with KeyBank for 38-unit elevator rental in Greenpoint

GDC Properties through the entity 305 McGuinness Investors, LLC as borrower signed a refi loan with lender KeyBank valued at $17.7 million for the 38-unit residential elevator building at 305 McGuinness Boulevard in Greenpoint, Brooklyn.
The deal closed on March 14, 2022 and was recorded on March 28, 2022. The prior lender was Bethpage Federal Credit Union which held debt that had an original loan amount of $21.1 million. The property has 40,000 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $442 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 January 20, 2016, for $31 million. The signatory for GDC Properties was William F. Ingraham. The signatory for KeyBank was Sherry Witt. There was $19,571,224 remaining on the loan, which was assigned to KeyBank. William Ingraham is president of GDC Properties.  GDC owns at least four Brooklyn elevator buildings with a total of 253 units, according to PincusCo data.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Jordan Wolf, head officer and David Kearney, shareholder. The business entity is 305 Mcguinness Investors,Llc.

The property

The 305 Mcguinness Boulevard parcel has frontage of 60 feet and is 200 feet deep with a total lot size of 12,000 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The property has a 421A exemption that started in 2010.0 and expires in 2025.0. The city-designated market value for the property in 2022 is $11.1 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received one DOB violation and two housing 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 neighborhood

In Greenpoint, the bulk, or 23 percent of the 29.6 million square feet of commercial built space are residential walkup buildings, with industrial buildings next occupying 21 percent of the space. In sales, Greenpoint has 1.6 times the average sales volume among other neighborhoods with $450.6 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, Greenpoint has 3.7 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 3.4 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

On this tax block, PincusCo has identified the owners of eight of the 40 commercial properties representing 53,248 square feet of the 226,433 square feet. The largest owner is Peak Capital Advisors, followed by Walter Besser and then Jack Kolacz. There is one active new building construction project totaling 9,997 square feet. It is a 10-unit, 9,997-square-foot R-2 building developed by Gilad Tamir with plans filed March 19, 2020 and permitted August 7, 2020.

The majority, or 62 percent of the 244,000 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 16 percent of the space.

Surrounding

Within a 400-foot radius of 305 McGuinness Boulevard, Pincusco identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, three were loans above $5 million totaling $25.8 million. The most recent of the three was Maria Kodogiannis-Olszewski which borrowed $5.6 million from Customers Bank secured by the 1,984-square-foot, one-unit retail building (G4) on 321 Mcguinness Blvd and one other property on July 17, 2020.

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