Icon Realty signs $8M refi loan with BCB for 8-unit walkup in East Village

Icon Realty Management through the entity 43 Orchard Realty LLC as borrower signed a refi loan with lender BCB Community Bank valued at $8 million for the midblock eight-unit residential walkup building at 352 East 13th Street in East Village, Manhattan.
The deal closed on May 13, 2022 and was recorded on June 2, 2022. The prior lender was BankUnited which held debt that had an original loan amount of $7.3 million. The property has 8,215 square feet of built space and 455 square feet of additional air rights for a total buildable of 8,672 square feet according to PincusCo analysis of city data. The loan price per built square foot is $971 and the price per buildable square foot is $920 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 10, 2014, for $5.1 million. The signatory for Icon Realty Management was Terrence Lowenberg and Todd Cohen. The signatory for BCB Community Bank was Angeles DeSantis.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Terrence Lowenberg, head officer and Todd Cohen, officer. The business entity is 43 Orchard Realty, Llc. The 8,215-square-foot property generated revenue of $361,131 or $44 per square foot, according to the most recent income and expense figures.

The property

The 352 East 13th Street parcel has frontage of 21 feet and is 103 feet deep with a total lot size of 2,168 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 $4.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $150 in OATH penalties in the last year.

Development

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 East Village, the bulk, or 35 percent of the 19.3 million square feet of commercial built space are residential walkup buildings, with residential elevator buildings next occupying 27 percent of the space. In sales, East Village has 2.1 times the average sales volume among other neighborhoods with $593.6 million in sales volume in the last two years and is the 21st highest in Manhattan. For development, East Village has had very little major development activity relative to other neighborhoods.It had 152,634 square feet of commercial and multi-family construction under development in the last two years, which represents 0.79 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 20 of the 26 commercial properties representing 228,444 square feet of the 287,654 square feet. The largest owner is Kambiz Hakim, followed by A&E Real Estate Holdings and then Icon Realty Management. There are no active new building construction projects on this tax block.

The majority, or 63 percent of the 413,685 square feet of built space are residential walkup buildings, with specialty buildings next occupying 16 percent of the space.

The borrower

The PincusCo database currently indicates that Icon Realty Management owned at least 100 commercial properties with 1,113,852 square feet and a city-determined market value of $374.6 million. (Market value is typically about 50% of actual value.) The portfolio has $231.3 million in debt, with top three lenders as Signature Bank, New York Community Bank, and Bank Leumi respectively. Within the portfolio, the bulk, or 65 percent of the 1,113,852 square feet of built space are walkup properties, with elevator properties next occupying 14 percent of the space. The bulk, or 87 percent of the built space, is in Manhattan, with Brooklyn next at 13 percent of the space.

Surrounding

Within a 400-foot radius of 352 East 13th Street, PincusCo identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, four were sales above $5 million totaling $68.2 million. The most recent of the four was L3C Capital Partners which bought the 10,730-square-foot, 14-unit rental (C4) on 337 East 13th Street and two other properties for $24.2 million from J. Stuart Lemle, Russell Lemle, and L. Craig Lemle on February 8, 2022.
Of those nine items, five were loans above $5 million totaling $117.9 million. The most recent of the five was L3C Capital Partners which borrowed $18 million from Signature Bank secured by the 10,730-square-foot, 14-unit rental (C4) on 337 East 13th Street and two other properties on February 8, 2022.

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