Joel Landau signs $26.5M refi with Metropolitan Commercial for dev parcel in Bed Stuy

Joel Landau through the entity Nnrc Properties LLC as borrower signed a refi loan with lender Metropolitan Commercial Bank valued at $26.5 million for the development building at 600 Dekalb Avenue in Bed Stuy, Brooklyn.
The deal closed on March 31, 2022 and was recorded on April 14, 2022. The prior lender was Welltower Inc. which held debt that had an original loan amount of $25 million.The property has zero square feet of built space and 190,400 square feet of additional air rights for a total buildable of 190,400 square feet according to PincusCo analysis of city data. The loan price per buildable square foot is $139 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 June 30, 2015, for $15.6 million. The signatory for Joel Landau was Joel Landau. The signatory for Metropolitan Commercial Bank was Craig Zajac and Vivek Baid.

The property

The 600 Dekalb Avenue parcel has frontage of 238 feet and is 200 feet deep with a total lot size of 47,600 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 $9.1 million. The most recent loan totaled $25 million and was provided by Welltower, Inc. on March 2, 2021.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $2,500 in ECB penalties and $3,430 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 362,728 square feet. The largest is a new building project for a 226-unit, 199,111-square-foot R-2 building developed by Jack Gold with plans filed February 15, 2022 and it has not been permitted yet. The second largest is a new building project for a 241-unit, 163,617-square-foot R-2 building developed by Aaron Lebovits with plans filed August 27, 2015 and permitted December 18, 2015.

The neighborhood

In Bed Stuy, the bulk, or 38 percent of the 92.5 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 20 percent of the space. In sales, Bed Stuy has 1.5 times the average sales volume among other neighborhoods with $417.3 million in sales volume in the last two years and is the 6th highest in Brooklyn. For development, Bed Stuy is the 8th most active neighborhood among other neighborhoods. It had 4.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other development buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 12 of the 20 commercial properties representing 268,528 square feet of the 281,603 square feet. The largest owner is Marvin Rubin, followed by Anshel Fridman and then St. Nicholas Neighborhood Preservation Corp.. There are two active new building construction projects totaling 362,728 square feet. The largest is a 226-unit, 199,111-square-foot R-2 building developed by Jack Gold with plans filed February 15, 2022 and it has not been permitted yet.The second largest is a 241-unit, 163,617-square-foot R-2 building developed by Aaron Lebovits with plans filed August 27, 2015 and permitted December 18, 2015.

The majority, or 43 percent of the 327,545 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 39 percent of the space.

Surrounding

Within a 400-foot radius of 600 Dekalb Avenue, PincusCo identified four commercial real estate items of interests occurred over the past 24 months.
One of those four items was a sale which Healthcare Trust of America bought the 45,600-square-foot industrial (I5) on 616 Dekalb Avenue for $21.3 million from EmblemHealth on January 21, 2020.
Of those four items, three were loans above $5 million totaling $90.6 million. The most recent of the three was Aron Karpen which borrowed $7.5 million from Greystone & Co. secured by the 21,990-square-foot, 32-unit rental (C1) on 70 Kosciuszko Street on February 22, 2022.

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