GFP Real Estate signs $11M refi with JPMorgan Chase for industrial in East Williamsburg

GFP Real Estate through the entity 7 Bushwick Place Associates LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $11 million for the industrial building (F5) at 246 Meserole Street in East Williamsburg, Brooklyn.
The deal closed on December 9, 2022 and was recorded on December 13, 2022. The prior lender was Signature Bank. The property has 71,500 square feet of built space according to PincusCo analysis of city data.
The owner bought the property on October 30, 2014, for $12.5 million. The signatory for GFP Real Estate was Brian Steinwurtzel. The signatory for JPMorgan Chase was Jennifer Smith.

Prior sales and revenue

The 71,500-square-foot property generated revenue of $825,449 or $12 per square foot, according to the most recent income and expense figures.

The property

The 246 Meserole Street parcel has frontage of 205 feet and is 135 feet deep with a total lot size of 36,336 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $3.9 million.

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 $1,000 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on November 6, 2014. 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 East Williamsburg, the majority, or 63 percent of the 16.3 million square feet of commercial built space are industrial buildings, with walkup buildings next occupying 10 percent of the space. In sales, East Williamsburg has 1.2 times the average sales volume among other neighborhoods with $430.4 million in sales volume in the last two years and is the 16th highest in Brooklyn. For development, East Williamsburg has 1.2 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Brooklyn. It had 1.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 11 of the 25 commercial properties representing 266,988 square feet of the 673,833 square feet. The largest owner is Steel Equities, followed by Zvi Steven Landman and then Lirr.
there are no active new building construction projects on this tax block.

The majority, or 63 percent of the 673,833 square feet of built space are industrial buildings, with specialty buildings next occupying 25 percent of the space.

The borrower

The PincusCo database currently indicates that GFP Real Estate owned at least 15 commercial properties in New York City with 3,325,720 square feet and a city-determined market value of $489.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 94 percent of the 3,325,720 square feet of built space are office properties, with hotel properties next occupying 4 percent of the space. The bulk, or 97 percent of the built space, is in Manhattan, with Bronx next at 2 percent of the space.

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