Joel Teitelbaum signs $25.8M construction loan with BridgeCity Capital for 82-unit LIC project

Joel Teitelbaum and Matt Katz through the entity Jackson Holdings NY LLC as borrower signed a new construction loan with lender BridgeCity Capital through the entity BCC Jackson LIC LLC valued at $25.8 million for the 82-unit project (V1) at 26-04 Jackson Avenue in Long Island City, Queens.
On the lot, there is a new building project for an 82-unit, 71,667 square-foot building submitted by Matt Katz with plans filed December 9, 2021 and it has not been permitted yet.
The deal closed on November 7, 2023 and was recorded on November 17, 2023.
The signatory for Joel Teitelbaum and Matt Katz was Joel Teitelbaum.

Prior sales and revenue

The 9,100-square-foot property generated revenue of $188,006 or $21 per square foot, according to the most recent income and expense figures.

The property

The parcel has frontage of 74 feet and is 100 feet deep with a total lot size of 7,199 square feet. The lot is irregular. The zoning is M1-5/R9 which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 7.52 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.2 million.

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 $1,250 in ECB penalties and $1,350 in OATH penalties in the last year.

The neighborhood

In Long Island City, The bulk, or 32 percent of the 60.1 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 31 percent of the space. In sales, Long Island City has the 9th highest sale turnover among other neighborhoods in the city with $1.8 billion in sales volume in the last two years. For development, Long Island City is the 4th most active neighborhood among other neighborhoods. It had 8.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the eight commercial properties representing 554,886 square feet of the 568,060 square feet. The largest owner is Principal Real Estate Investors, followed by Michael S. Field and then Eckstein Development.
On the tax block, there were five new building construction projects totaling 409,781 square feet. The largest is a 270-unit, 206,811 square-foot residential (R-2) building submitted by Brause Realty and filed by David Brause with plans filed August 13, 2014 and permitted April 24, 2015. The second largest is a 82-unit, 71,667 square-foot 51 building submitted by Matt Katz with plans filed December 9, 2021 and it has not been permitted yet.

The majority, or 96 percent of the 568,060 square feet of built space are elevator buildings, with industrial buildings next occupying 2 percent of the space.

The borrower

The PincusCo database currently indicates that Joel Teitelbaum owned at least two commercial properties with eight residential units in New York City with 33,165 square feet and a city-determined market value of $3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 85 percent of the 33,165 square feet of built space are industrial properties, with walkup properties next occupying 15 percent of the space. The bulk, or 85 percent of the built space, is in Bronx, with Brooklyn next at 15 percent of the space.

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