Joel Schwartz signs $42M construction loan with Cross River for 227-unit project in East New York
Joel Schwartz through the entity 2700 Atlantic Ny LLC as borrower signed a new construction loan with lender Cross River Bank valued at $42 million for the 227-unit development (V1) at 2700 Atlantic Avenue in East New York, Brooklyn.
On the lot, there is one active new building construction project for a 227-unit, 158,730 square-foot R-2 building. The project was submitted by Joel Schwartz and filed by Joel Schwartz with plans filed September 14, 2020 and it has not been permitted yet.
The deal closed on April 27, 2023 and was recorded on May 2, 2023.
The owner bought the property on May 3, 2022, for $17 million. The signatory for Joel Schwartz was Joel Schwartz.
The property
The development building in East New York has 10,460 square feet of built space and 52,509 square feet of additional air rights for a total buildable of 62,969 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 106 feet deep with a total lot size of 10,460 square feet. The zoning is M1-4/R8A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $501,700.
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 two DOB violations, $15,060 in ECB penalties, and $16,260 in OATH penalties in the last year.
The neighborhood
In East New York, The bulk, or 40 percent of the 44.5 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 21 percent of the space. In sales, East New York has 2.4 times the average sales volume among other neighborhoods with $845.7 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, East New York is the 5th most active neighborhood among other neighborhoods. It had 5 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of one of the four commercial properties representing 10,460 square feet of the 60,871 square feet. The identified owner is Invesco Real Estate.
On the tax block, there were two new building construction projects totaling 227,690 square feet. The largest is a 227-unit, 158,730 square-foot residential (R-2) building submitted by Joel Schwartz and filed by Joel Schwartz with plans filed September 14, 2020 and it has not been permitted yet. The second largest is a 68,960 square-foot storage (S-1) building submitted by SNL Storage and filed by Michael Jayne with plans filed May 1, 2020 and permitted June 26, 2020.
The majority, or 83 percent of the 60,871 square feet of built space are industrial buildings, with development buildings next occupying 17 percent of the space.
The borrower
The PincusCo database currently indicates that Joel Schwartz owned at least 70 commercial properties with 925 residential units in New York City with 1,058,041 square feet. The portfolio has $742.8 million in debt, with top three lenders as Citibank, BridgeCity Capital, and Starwood Capital Group respectively. Within the portfolio, the bulk, or 63 percent of the 1,058,041 square feet of built space are elevator properties, with walkup properties next occupying 15 percent of the space. They are all located in Brooklyn.
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