Gotham, Monadnock, church, sign $217.4M construction loan for 386 units in East New York

Gotham Organization, Christian Cultural Center, and Monadnock Development through the entity IUV Phase 1A Housing Development Fund Corporation as borrower signed a new construction loan with lender NYS Housing Finance Agency and the NYC Department of Housing Preservation and Development valued at $217.4 million for the 386-unit development at 30 Inspiration Lane in East New York, Brooklyn.

The partners plan to build a 386-unit building on this parcel, part of a 2,100-unit plan called Urban Village.

The deal closed on March 27, 2024 and was recorded on April 8, 2024.
The development venture bought the property on March 27, 2024, for $13.9 million. The signatory for Gotham Organization, Christian Cultural Center, and Monadnock Development was David L. Picket and James Halek. The signatory for NYS Housing Finance Agency, NYC Department of Housing Preservation and Development, and was Patrick Love.

The property

The parcel has frontage of 235 feet and is 290 feet deep with a total lot size of 68,456 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $5.5 million.

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 not received any significant violations in the last year.

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 2.2 times the average sales volume among other neighborhoods with $605.3 million in sales volume in the last two years and is the 8th highest in Brooklyn. For development, East New York is the 9th most active neighborhood among other neighborhoods. It had 5.1 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 one of the four commercial properties representing zero square feet of the 208,624 square feet. The identified owner is Monadnock Development.
On the tax block, there were two new building construction projects totaling 909,085 square feet. The largest is a 460-unit, 470,902 square-foot residential (R-2) building submitted by Gotham Organization and filed by David Picket with plans filed April 14, 2023 and it has not been permitted yet. The second largest is a 386-unit, 438,183 square-foot residential (R-2) building submitted by Gotham Organization and filed by David Picket with plans filed April 14, 2023 and it has not been permitted yet.

The majority, or 100 percent of the 208,624 square feet of built space are elevator buildings, with development buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Monadnock Development owned at least 77 commercial properties with 2,992 residential units in New York City with 2,155,336 square feet and a city-determined market value of $295.9 million. (Market value is typically about 50% of actual value.) The portfolio has $864.8 million in debt, with top three lenders as New York City Housing Authority, NYC Housing Development Corporation, and NYS Housing Finance Agency respectively. Within the portfolio, the bulk, or 64 percent of the 2,155,336 square feet of built space are elevator properties, with walkup properties next occupying 20 percent of the space. The bulk, or 82 percent of the built space, is in Manhattan, with Bronx next at 17 percent of the space.

The PincusCo database currently indicates that Gotham Organization owned at least five commercial properties with 938 residential units in New York City with 903,586 square feet and a city-determined market value of $52.8 million. (Market value is typically about 50% of actual value.) The portfolio has $418.8 million in debt, borrowed from Wells Fargo. Within the portfolio, the bulk, or 51 percent of the 903,586 square feet of built space are elevator properties, with D6 properties next occupying 38 percent of the space. The bulk, or 62 percent of the built space, is in Manhattan, with Queens next at 38 percent of the space.

The PincusCo database currently indicates that Christian Cultural Center owned at least two commercial properties in New York City with 0.0 square feet and a city-determined market value of $5.9 million. (Market value is typically about 50% of actual value.) The portfolio has $12.8 million in debt, borrowed from AdelFi Credit Union. Within the portfolio, the bulk, or 0 percent of the 0.0 square feet of built space are specialty properties, with development properties next occupying 0 percent of the space.

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