Jacob Hager signs $10.4M refi with Chase for nine properties in Flatbush

Jacob Hager through the entity East 22nd Equities LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $10.4 million for nine properties including the midblock 13-unit residential walkup building at 445 East 22nd Street in Flatbush, Brooklyn, midblock 13-unit residential walkup building at 459 East 22nd Street in Flatbush, Brooklyn, and midblock 13-unit residential walkup building at 434 East 22nd Street in Flatbush, Brooklyn.

The deal closed on February 24, 2022 and was recorded on March 4, 2022. The prior lender was Fannie Mae which held debt that had an original loan amount of $7.1 million.The nine properties have 123,760 square feet of built space and 18,489 square feet of additional air rights for a total buildable of 140,763 square feet according to PincusCo analysis of city data. The loan price per built square foot is $84 and the price per buildable square foot is $73 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 Jacob Hager was Jacob Hager. The signatory for JPMorgan Chase was Ursula Flores.

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 437 East 22nd Street.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Naftali Hager, head officer and Jacob Hager, officer. The business entity is East 22nd Equities Llc. Out of the nine properties, seven with a total of 123,760 square feet of built space generated revenue of $1.4 million per year.

The property

The 437 East 22nd Street parcel has frontage of 60 feet and is 83 feet deep with a total lot size of 4,986 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 $2.2 million.

Violations and lawsuits

The properties were not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the properties have received 33 housing violations and $1,400 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 Flatbush, the bulk, or 47 percent of the 51.8 million square feet of built space are residential elevator buildings, with 1-4 family buildings next occupying 17 percent of the space. In sales, Flatbush has had very little sales volume relative to other neighborhoods with $208.8 million in sales volume in the last two years. For development, Flatbush has near average amount of major developments among other neighborhoods and is the 20th highest in Brooklyn. It had 1 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There were four pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On the tax block of 437 East 22nd Street, PincusCo has identified the owners of two of the 27 commercial properties representing 77,844 square feet of the 231,733 square feet. The two identified owners are Isaac Jacobowitz and Carnegie Management. There are no active new building construction projects on this tax block.

The majority, or 35 percent of the 231,733 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 25 percent of the space.

The borrower

The PincusCo database currently indicates that Jacob Hager owned at least seven commercial properties with 249,706 square feet and a city-determined market value of $24.6 million. (Market value is typically about 50% of actual value.) The portfolio has $26.7 million in debt, with top three lenders as New York Community Bank, Capital One, and PIMCO respectively. Within the portfolio, the bulk, or 58 percent of the 249,706 square feet of built space are residential walkup properties, with residential elevator properties next occupying 42 percent of the space. They are all located in Brooklyn.

Surrounding

Within a 400-foot radius of 437 East 22nd Street, Pincusco identified three commercial real estate items of interests occurred over the past 24 months.
One of those three items was a sale which Yechiel Weinberger bought the 47,084-square-foot, 49-unit rental (D1) on 535 East 21st Street for $7 million from Eric Silverstein on January 24, 2020.
Of those three items, two were loans above $5 million totaling $12.5 million. The most recent of the two was Pinnacle Group which borrowed $6.3 million from New York Community Bank secured by the 56,000-square-foot, 66-unit rental (D1) on 426 East 22nd Street on October 4, 2021.

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