Jacob Rosenberg signs $30M refi for newly built elevator properties in Cypress Hills

Jacob Rosenberg through the entity Yc Atlantic 2 LLC as borrower signed a refi loan with lender Citibank through the entity Citi Real Estate Funding Inc. valued at $30 million for two residential elevator properties with 104 residential units including the 41-unit residential elevator building (D7) at 2767 Atlantic Avenue in Cypress Hills, Brooklyn and 63-unit residential elevator building (D7) at 2777 Atlantic Avenue in Cypress Hills, Brooklyn.
The deal closed on August 8, 2024 and was recorded on August 22, 2024. The prior lender was Popular Bank which held debt that had an original loan amount of $20.8 million.The two properties have 65,442 square feet of built space and 2,106 square feet of additional air rights according to a PincusCo analysis of city data. The loan price per built square foot is $458 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 Rosenberg was Jacob Rosenberg. The signatory for Citibank was Ana Rosu Marmann.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Evelyn Rosenberg, head officer and Michael Rosenberg, agent. The business entity is Yc Atlantic 2 Llc. Out of the two properties, one with a total of 65,442 square feet of built space generated revenue of $55,272 per year.

The property

The residential elevator building with 63 residential units in Cypress Hills has 65,442 square feet of built space and 2,106 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 20 feet and is 106 feet deep with a total lot size of 6,383 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $313,000. The most recent loan totaled $20.8 million and was provided by Popular Bank on May 12, 2023.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received two DOB violations, $15,000 in ECB penalties, and $21,350 in OATH penalties in the last year.

Development

On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 65,003 square feet. The largest, B00624645, is a new building project for a 63-unit, 36,923 square-foot R-2 building submitted by Urbane Management Team and filed by Michael Rosenberg with plans filed November 4, 2021 and permitted January 30, 2023. The second largest, B00622896, is a new building project for a 41-unit, 28,080 square-foot R-2 building submitted by Urbane Management Team and filed by Michael Rosenberg with plans filed November 4, 2021 and permitted November 20, 2023.

The block

On the tax block of 2777 Atlantic Avenue, PincusCo has identified the owners of six of the 24 commercial properties representing 46,780 square feet of the 108,299 square feet. The largest owner is Jacob Rosenberg, followed by Evelyn Rosenberg and then Dovie Sperlin.
On the tax block, there were three new building construction projects totaling 82,483 square feet. The largest is a 63-unit, 36,923 square-foot residential (R-2) building submitted by Urbane Management Team and filed by Michael Rosenberg with plans filed November 4, 2021 and permitted January 30, 2023. The second largest is a 41-unit, 28,080 square-foot residential (R-2) building submitted by Urbane Management Team and filed by Michael Rosenberg with plans filed November 4, 2021 and permitted March 4, 2022.

The majority, or 35 percent of the 108,299 square feet of built space are walkup buildings, with mixed-use buildings next occupying 31 percent of the space.

The borrower

The PincusCo database currently indicates that Jacob Rosenberg owned at least five commercial properties with 131 residential units in New York City with 37,619 square feet and a city-determined market value of $6.8 million. (Market value is typically about 50% of actual value.) The portfolio has $20.8 million in debt, borrowed from Popular Bank and CLDDJ Investors Group. Within the portfolio, the bulk, or 67 percent of the 37,619 square feet of built space are walkup properties, with elevator properties next occupying 12 percent of the space. They are all located in Brooklyn.

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