Joseph Riegler signs $8M renovation loan with LISC for school in East New York

Joseph Riegler through the entity 822 Dumont Millenium LLC as borrower signed a renovation construction loan with lender Local Initiatives Support Corporation valued at $8 million for the school building (W2) at 588 Hendrix Street, also known as 818 Dumont Avenue, in East New York, Brooklyn.
The deal closed on December 8, 2023 and was recorded on December 20, 2023. The prior lender was CDK Lending which held debt that had an original loan amount of $4.4 million.
The property has 19,000 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $421 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 April 19, 2023, for $5.4 million. The signatory for Joseph Riegler was Joseph Riegler.

The property

The specialty building in East New York has 19,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 140 feet deep with a total lot size of 14,000 square feet. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.4 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 one DOB violation, $10,000 in ECB penalties, and $11,000 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

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 2.3 times the average sales volume among other neighborhoods with $795.7 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, East New York is the 7th 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 six commercial properties representing 19,000 square feet of the 40,900 square feet. The identified owner is Joseph Riegler.
On the tax block, there was one new building construction project filed totaling 2,991 square feet. It is a three-unit, 2,991 square-foot residential (R-2) building submitted by Rona Reodica with plans filed September 10, 2019 and it has not been permitted yet.

The majority, or 54 percent of the 40,900 square feet of built space are walkup buildings, with specialty buildings next occupying 46 percent of the space.

The borrower

The PincusCo database currently indicates that Joseph Riegler owned at least six commercial properties with 79 residential units in New York City with 174,752 square feet and a city-determined market value of $12.4 million. (Market value is typically about 50% of actual value.) The portfolio has $28.3 million in debt, with top three lenders as Fairview Partners Investment Management, DH1 Holdings, and Sterling National Bank respectively. Within the portfolio, the bulk, or 32 percent of the 174,752 square feet of built space are industrial properties, with elevator properties next occupying 32 percent of the space. The bulk, or 89 percent of the built space, is in Bronx, with Brooklyn next at 11 percent of the space.

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