Green Street Group signs $26M construction loan for 67-unit project in Greenpoint
Green Street Group through the entity 170 Freeman LLC as borrower signed a new construction loan with lender Preferred Bank valued at $26 million for the development (V1) at 170 Freeman Street in Greenpoint, Brooklyn.
On the lot, there is one active new building construction project for a 67-unit, 44,637 square-foot R-2 building. The project was submitted by Jenna Goldman with plans filed September 24, 2020 and permitted May 18, 2022.
The deal closed on May 16, 2024 and was recorded on May 30, 2024. The property has zero square feet of built space and 39,996 square feet of additional air rights for a total buildable of 39,996 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $650 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 August 2, 2023, for $14 million. The signatory for Green Street Group was Joshua Greenberg. The signatory for Preferred Bank was Nick Wang.
The property
The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 9,999 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.2 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 received $2,500 in ECB penalties and $2,500 in OATH penalties in the last year.
The neighborhood
In Greenpoint, The bulk, or 29 percent of the 23.7 million square feet of commercial built space are walkup buildings, with industrial buildings next occupying 25 percent of the space. In sales, Greenpoint has 2.1 times the average sales volume among other neighborhoods with $572.1 million in sales volume in the last two years and is the 11th highest in Brooklyn. For development, Greenpoint has 1.5 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Brooklyn. It had 1.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of 28 of the 31 commercial properties representing 159,338 square feet of the 171,555 square feet. The largest owner is Zdzislaw Zylka, followed by John Romanczyk and then Carlo Casalino.
On the tax block, there were two new building construction projects totaling 44,637 square feet. The largest is a 67-unit, 44,637 square-foot residential (R-2) building submitted by Jenna Goldman with plans filed September 24, 2020 and permitted May 18, 2022. The second largest is a 35-unit residential (R-2) building submitted by Brend Development Corporation and filed by Witold Brend with plans filed September 13, 2021 and permitted March 14, 2022.
The majority, or 81 percent of the 171,555 square feet of built space are walkup buildings, with elevator buildings next occupying 13 percent of the space.
The borrower
The PincusCo database currently indicates that Green Street Group owned at least six commercial properties with 28 residential units in New York City with 6,000 square feet and a city-determined market value of $4.2 million. (Market value is typically about 50% of actual value.) The portfolio has $45.3 million in debt, with top three lenders as Bankwell Bank, Bank Leumi, and ConnectOne Bank respectively. Within the portfolio, the bulk, or 50 percent of the 6,000 square feet of built space are mixed-use properties, with S2 properties next occupying 50 percent of the space. They are all located in Brooklyn.
Direct link to Acris document. link