Joel Schwartz signs $27.4M refi for residential elevator in Cypress Hills

Joel Schwartz through the entity 2815 Atlantic Holdings LLC as borrower signed a refi loan with lender Cathay Bank through the entity Cathay Bank valued at $27.4 million for the 68-unit residential elevator building (D7) at 2817 Atlantic Avenue in Cypress Hills, Brooklyn.
The deal closed on July 6, 2023 and was recorded on July 18, 2023. The prior lender was Bank of Princeton which held debt that had an original loan amount of $20 million.

The property has 64,322 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $426 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 January 16, 2019, for $2.8 million. The signatory for Joel Schwartz was Joel Schwartz. The signatory for Cathay Bank was Peggy Chan and Jacky Yuan.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Charles Schwartz, head officer. The business entity is 2815 Atlantic Holdings Llc.

The property

The residential elevator building with 68 residential units in Cypress Hills has 64,322 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 91 feet deep with a total lot size of 6,658 square feet. The lot is irregular. 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 $820,000. The most recent loan totaled $20 million and was provided by Bank of Princeton on December 3, 2020.

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 one DOB violation, $16,250 in ECB penalties, six housing violations, and $16,250 in OATH penalties in the last year.

Development

On the lot, there was one active new building construction project for a 68-unit, 47,454 square-foot R-2 building. The project was submitted by Joel Schwartz and filed by Joel Schwartz with plans filed April 2, 2019 and permitted May 5, 2021.

The block

On this tax block, PincusCo has identified the owners of one of the 14 commercial properties representing 64,322 square feet of the 99,696 square feet. The identified owner is Shaindy Schwartz.
On the tax block, there was one new building construction project filed totaling 47,454 square feet. It is a 68-unit, 47,454 square-foot residential (R-2) building submitted by Joel Schwartz and filed by Joel Schwartz with plans filed April 2, 2019 and permitted May 5, 2021.

The majority, or 65 percent of the 99,696 square feet of built space are elevator buildings, with mixed-use buildings next occupying 35 percent of the space.

The borrower

The PincusCo database currently indicates that Joel Schwartz owned at least 76 commercial properties with 938 residential units in New York City with 1,001,267 square feet and a city-determined market value of $171 million. (Market value is typically about 50% of actual value.) The portfolio has $873.4 million in debt, with top three lenders as BridgeCity Capital, Citibank, and Popular Bank respectively. Within the portfolio, the bulk, or 56 percent of the 1,001,267 square feet of built space are elevator properties, with walkup properties next occupying 17 percent of the space. They are all located in Brooklyn.

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