Jacob Kempler Family signs $9M refi with Santander for two rentals in Flatbush

Jacob Kempler Family Partnership through the entity 116 Lenox Realty, LLC as borrower signed a refi loan with lender Santander Bank valued at $9 million for two residential elevator properties including the 82-unit residential elevator building (D1) at 116 Lenox Road in Flatbush, Brooklyn and 81-unit residential elevator building (D1) at 75 Lenox Road in Flatbush, Brooklyn.
The deal closed on February 24, 2023 and was recorded on March 8, 2023. The prior lender was JPMorgan Chase which held debt that had an original loan amount of $4.6 million.
The two properties have 132,129 square feet of built space and 22,066 square feet of additional air rights for a total buildable of 154,200 square feet according to PincusCo analysis of city data. The loan price per built square foot is $68 and the price per buildable square foot is $58 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 Kempler Family Partnership was David Blau. The signatory for Santander Bank was Margaret M. Fahy.

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 75 Lenox Road.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Yehuda Fridman, head officer and Leib Twerski, officer. The business entity is 75 Lenox Realty Llc. The two properties with a total of 132,129 square feet of built space generated revenue of $1.8 million per year or $14 per square foot.

The property

The 75 Lenox Road parcel has frontage of 100 feet and is 200 feet deep with a total lot size of 20,000 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 $3 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 four DOB violations, $5,000 in ECB penalties, 416 housing violations, $7,355 in OATH penalties, and four 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 75 Lenox Road, PincusCo has identified the owners of seven of the 32 commercial properties representing 338,697 square feet of the 666,508 square feet. The largest owner is Reginald Martin, followed by Joseph Popack and then Goldmont Realty.
On the tax block, there were two new building construction projects totaling 59,763 square feet. The largest is a 43-unit, 32,956-square-foot R-2 building developed by Marc Jacobowitz with plans filed March 30, 2020 and permitted January 28, 2022. The second largest is a 37-unit, 26,807-square-foot R-2 building developed by Ofer Prager with plans filed January 25, 2016 and it has not been permitted yet.

The majority, or 73 percent of the 666,508 square feet of built space are elevator buildings, with walkup buildings next occupying 14 percent of the space.

The borrower

The PincusCo database currently indicates that Jacob Kempler Family Partnership owned at least four commercial properties in New York City with 328,689 square feet and a city-determined market value of $13.3 million. (Market value is typically about 50% of actual value.) The portfolio has $22.1 million in debt, borrowed from New York Community Bank and Santander Bank. Within the portfolio, the bulk, or 87 percent of the 328,689 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 73 percent of the built space, is in Brooklyn, with Bronx next at 27 percent of the space.

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