Jack Geula signs $39M refi for eight residential walkup properties in Brooklyn

Jack Geula through the entity 31 Sunset Park Holdings LLC as borrower signed a refi loan with lender Customers Bank valued at $39 million for eight residential walkup properties including the 37-unit residential walkup building (C7) at 4710 7th Avenue in Sunset Park, Brooklyn, 37-unit residential walkup building (C7) at 4714 7th Avenue in Sunset Park, Brooklyn, and 44-unit residential walkup building (C1) at 874 43rd Street in Sunset Park, Brooklyn.
The deal closed on July 19, 2022 and was recorded on August 9, 2022. The prior lender was BankUnited which held debt that had an original loan amount of $26 million. The eight properties have 165,497 square feet of built space and 25,861 square feet of additional air rights for a total buildable of 182,994 square feet according to PincusCo analysis of city data. The loan price per built square foot is $235 and the price per buildable square foot is $213 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 Jack Geula was Jack Geula. The signatory for Customers Bank was Donald A. States.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 4018 5th Avenue.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Jack Guela, head officer and Jack Geula, head officer. The business entity is 5 Sunset Park Holdings Llc. The eight properties with a total of 165,497 square feet of built space generated revenue of $3 million per year or $18 per square foot.

The property

The 4018 5th Avenue parcel has frontage of 78 feet and is 100 feet deep with a total lot size of 9,069 square feet. The lot is irregular. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received one DOB violation, 249 housing violations, $3,520 in OATH penalties, and six housing litigations 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 block

On the tax block of 4018 5th Avenue, PincusCo has identified the owners of eight of the 23 commercial properties representing 58,910 square feet of the 125,023 square feet. The largest owner is Marguerite Behette, followed by Jack Geula and then Thaniel Beinert.
There are no active new building construction projects on this tax block.

The majority, or 76 percent of the 125,023 square feet of built space are walkup buildings, with mixed-use buildings next occupying 18 percent of the space.

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