Jay Group signs $100M senior refi with Affinius in Downtown Brooklyn, part of $160M package
Jay Group through the entity 101 Fleet Holding LLC as borrower signed a senior refi construction loan with lender Affinius Capital through the entity SM Finance III LLC valued at $100 million for the specialty building (W9) at 101 Fleet Place in Downtown Brooklyn, Brooklyn. The Commercial Observer reported the financing that has a total debt of $160 million.
The deal closed on May 24, 2024 and was recorded on June 7, 2024. The prior lender was G4 Capital Partners which held debt that had an original loan amount of $100 million.The property has 20,073 square feet of built space and 180,657 square feet of additional air rights for a total buildable of 200,730 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $4,981 and the price per buildable square foot is $498 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 December 9, 2021, for $42.8 million. The signatory for Jay Group was Jacob Kohn. The signatory for Affinius Capital was Brad Cohen.
The property
The specialty building in Downtown Brooklyn has 20,073 square feet of built space and 180,657 square feet of additional air rights for a total buildable of 200,730 square feet according to a PincusCo analysis of city data. The parcel has frontage of 127 feet and is 168 feet deep with a total lot size of 20,073 square feet. The lot is irregular. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.5 million. The most recent loan totaled $100.8 million and was provided by G4 Capital Partners on December 9, 2021.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $21,675 in ECB penalties and $5,000 in OATH penalties in the last year.
Development
On the lot, there is one active new building construction project for a 292-unit, 240,092 square-foot R-2 building. The project was submitted by Jay Group and filed by Joel Kohn with plans filed January 4, 2022 and permitted December 7, 2023.
The neighborhood
In Downtown Brooklyn, The bulk, or 40 percent of the 22.4 million square feet of commercial built space are office buildings, with elevator buildings next occupying 24 percent of the space. In sales, Downtown Brooklyn has 3.3 times the average sales volume among other neighborhoods with $900.9 million in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Downtown Brooklyn has 3.3 times the average amount of major developments relative to other neighborhoods and is the 3rd highest in Brooklyn. It had 3.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of one of the three commercial properties representing 20,073 square feet of the 396,402 square feet. The identified owner is AB & Sons.
On the tax block, there were two new building construction projects totaling 634,045 square feet. The largest is a 440-unit, 393,953 square-foot residential (R-2) building submitted by Red Apple Group and filed by John Catsimatidis with plans filed September 19, 2014 and permitted April 28, 2015. The second largest is a 292-unit, 240,092 square-foot residential (R-2) building submitted by Jay Group and filed by Joel Kohn with plans filed January 4, 2022 and permitted December 7, 2023.
The majority, or 95 percent of the 396,402 square feet of built space are elevator buildings, with specialty buildings next occupying 5 percent of the space.
The borrower
The PincusCo database currently indicates that Jay Group owned at least seven commercial properties in New York City with 54,642 square feet and a city-determined market value of $9.2 million. (Market value is typically about 50% of actual value.) The portfolio has $287.9 million in debt, with top three lenders as Bank Hapoalim, G4 Capital Partners, and Cross River Bank respectively. Within the portfolio, the bulk, or 63 percent of the 54,642 square feet of built space are industrial properties, with specialty properties next occupying 37 percent of the space. The bulk, or 58 percent of the built space, is in Manhattan, with Brooklyn next at 42 percent of the space.
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