Graph Group modifies 22 NYC loans with $74.6M debt at former All Year rentals

Avi Philipson’s Graph Group modified 22 loans for a total of $74.6 million on a mostly Brooklyn rental portfolio with a total of 197 units that was formerly owned by Yoel Goldman’s All Year Management. The securitized loans including Series 2018-SB46 were all in the care of a U.S. Bank trustee. The loans ranged from $1.7 million to $5.8 million. The properties had between six and 15 units and were located in Bedford Stuyvesant, Bushwick, Crown Heights, Greenpoint, Ridgewood and Williamsburg.

Graph Group acquired the 133-building All Year Management portfolio valued at $435 million in early 2023 through a bankruptcy process, The Real Deal reported at the time. Philipson also was reported to be buying the William Vale hotel, but has not. And in addition he owns nursing homes.

The properties with the loan modifications included 506 Dekalb Avenue, 1221 Atlantic Avenue, 28 Wilson Avenue, 254 Palmetto Street, 311 Melrose Street and 1420 Putnam Avenue.

The borrowers on these loans are the same legal entities as those that All Year Management owned. The bankruptcy process provided for Graph Group to acquire the equity and did not involve individual deed transfers of each asset.

For example, Graph Group through the entity 1058 Bergen Street, LLC as borrower signed a loan modification with lender Series 2018-SB46 through the trustee U.S. Bank valued at $5.8 million for the 15-unit residential elevator building (D9) at 1058 Bergen Street in Crown Heights, Brooklyn.
The deal closed on September 1, 2023 and was recorded on November 15, 2023. The prior lender was Series 2018-SB46 which held debt that had an original loan amount of $5.8 million.The property has 10,848 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $530 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 Graph Group was Abraham Kraus. The signatory for Series 2018-SB46 was Mike Jenkins. This is a loan modification.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Nathan Schwarcz, head officer. The business entity is 1058 Bergen Street Llc.

The property

The residential elevator building with 15 residential units in Crown Heights has 10,848 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 38 feet and is 125 feet deep with a total lot size of 4,750 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The property has a J-51 exemption that started in 2013 and expires in 2027. The city-designated market value for the property in 2022 is $2.3 million.

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 block

On this tax block, PincusCo has identified the owners of 24 of the 38 commercial properties representing 153,953 square feet of the 200,278 square feet. The largest owner is Yossel Lichtman, followed by Local Development Corporation Of Crown Heights and then Graph Group.
On the tax block, there were two new building construction projects totaling 23,997 square feet. The largest is a 10-unit, 16,570 square-foot residential (R-2) building submitted by Massimo Cocco with plans filed December 20, 2018 and permitted April 1, 2021. The second largest is a nine-unit, 7,427 square-foot residential (R-2) building submitted by Shai Birenzweig with plans filed February 27, 2018 and permitted January 8, 2019.

The majority, or 62 percent of the 200,278 square feet of built space are walkup buildings, with elevator buildings next occupying 19 percent of the space.

Correction: A prior version of this story said Ari Philipson had acquired the William Vale hotel, but that property remains in bankruptcy.

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