Hirsch, Rosenfeld sign $8M refi loan with IceCap Group for 43-unit project in East New York

Israel Chaim Hirsch and Chayim Rosenfeld through the entity Cyh Milford St LLC as borrower signed a refi loan with lender IceCap Group through the entity Ice Lender Holdings, LLC valued at $8 million for the industrial building (F5) at 22 Milford Street in East New York, Brooklyn.

Moses Rabinowitz submitted a major alteration application for a conversion of the commercial (COM) building to a 43-unit residential (R-2) building. The plan was filed with the New York City Department of Buildings on January 23, 2024 under job number B00994203 and was permitted on May 28, 2024. The project is described in the filing as: interior renovation converting existing commercial 3 story building into residential building.

The deal closed on August 27, 2024 and was recorded on September 27, 2024. The prior lender was Broad X Funding which held debt that had an original loan amount of $2.4 million.The property has 14,631 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $546 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 April 18, 2024, for $2.6 million. The signatory for Israel Chaim Hirsch and Chayim Rosenfeld was Isreal Chaim Hirsch and Chayim Rosenfeld. The signatory for IceCap Group was Joseph Sasson.

The property

The industrial building in East New York has 14,631 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,000 square feet. The zoning is R5B which allows for up to 1.35 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $789,000.

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 44.6 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 1.3 times the average sales volume among other neighborhoods with $327.4 million in sales volume in the last two years and is the 21st highest in Brooklyn. For development, East New York is the 9th most active neighborhood among other neighborhoods. It had 4.9 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. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the 14 commercial properties representing 40,851 square feet of the 162,847 square feet. The largest owner is Israel Chaim Hirsch, followed by Chayim Rosenfeld and then Einav Gelberg.
On the tax block, there was one new building construction project filed totaling 2,875 square feet. It is a three-unit, 2,875 square-foot residential (R-2) building submitted by Eddy Rosario with plans filed November 7, 2018 and it has not been permitted yet.

The majority, or 79 percent of the 162,847 square feet of built space are industrial buildings, with specialty buildings next occupying 17 percent of the space.

The borrower

The PincusCo database currently indicates that Chayim Rosenfeld owned at least two commercial properties in New York City with 34,131 square feet and a city-determined market value of $2.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are industrial properties. They are all located in Brooklyn.
The PincusCo database currently indicates that Israel Chaim Hirsch owned at least one commercial property in New York City with 19,500 square feet and a city-determined market value of $1.6 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Brooklyn.

Direct link to Acris document. link