Heatherwood signs $32.9M refi with PNC Bank for 101-unit elevator rental in Greenpoint

470 Manhattan Avenue (Credit: Google)

Heatherwood Luxury Rentals through the entity New 470 De LLC. as borrower signed a refi loan with lender PNC Bank valued at $32.9 million for the 101-unit residential elevator building at 470 Manhattan Avenue in Greenpoint, Brooklyn.
The deal closed on December 15, 2021 and was recorded on March 31, 2022.

The prior lender was PNC Bank which held debt that had an original loan amount of $26 million.The property has 107,137 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $307 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 October 8, 2013, for $6.1 million. The signatory for Heatherwood Luxury Rentals was Douglas S. Patrick. The signatory for PNC Bank was Tara Suaya.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Douglas Patrick, head officer and Martin Marin, site manager. The business entities are New470 Llc and New 470 Llc. The 107,137-square-foot property generated revenue of $3.7 million or $35 per square foot, according to the most recent income and expense figures.

The property

The 470 Manhattan Avenue parcel has frontage of 51 feet and is 117 feet deep with a total lot size of 10,020 square feet. The lot is irregular. The zoning is M1-2/R6A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $19.8 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 two DOB violations, two housing violations, and $475 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on May 19, 2020. 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 two of the 14 commercial properties representing 111,262 square feet of the 169,012 square feet. The two identified owners are Heatherwood Luxury Rentals and Eric Lewin.

The majority, or 61 percent of the 176,641 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 21 percent of the space.

The borrower

The PincusCo database, which is incomplete, currently indicates that Heatherwood Luxury Rentals owned at least four commercial properties with 806,734 square feet and a city-determined market value of $159.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are residential elevator properties. The bulk, or 59 percent of the built space, is in Queens, with Brooklyn next at 41 percent of the space.

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