Joyland Group signs $66M construction loan with iCross Capital in Gowanus
Joyland Group through the entity Third At Third LLC as borrower signed a new construction loan with lender iCross Capital through the entity Elite United LLC valued at $66 million for the industrial building (E9) at 125 3rd Street in Gowanus, Brooklyn.
On the lot, there is one active new building construction project for a 84-unit, 73,135 square-foot R-2 building. The project was submitted by Orange Management and filed by Andrew Bradfield with plans filed November 15, 2021 and permitted May 13, 2022.
The deal closed on February 29, 2024 and was recorded on March 5, 2024. The prior lender was Maxim Capital Group which held debt that had an original loan amount of $16 million.
The owner bought the property on September 12, 2023, for $30.5 million. The signatory for Joyland Group was Joel Wertzberger. The signatory for iCross Capital was Lily Guo.
The property
The parcel has frontage of 157 feet and is 190 feet deep with a total lot size of 20,377 square feet. The lot is irregular. The zoning is M1-4/R7-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3.44 times FAR for residential. The city-designated market value for the property in 2022 is $272,000. The most recent loan totaled $16 million and was provided by Maxim Capital Group on September 12, 2023.
Violations and lawsuits
The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $27.5 million judgment concerning a partnership filed on February 22, 2023, by Orange Management and Andrew Bradfield against Sterling Town Equities, Yossi Ariel, Paul Amit, and Eyal Ben-Yosef. In addition, according to city public data, the property has received $15,650 in OATH penalties in the last year.
The neighborhood
In Gowanus, The bulk, or 46 percent of the 9.2 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 19 percent of the space. In sales, Gowanus has 2.1 times the average sales volume among other neighborhoods with $623.6 million in sales volume in the last two years and is the 7th highest in Brooklyn. For development, Gowanus has near average amount of major developments among other neighborhoods and is the 17th highest in Brooklyn. It had 899,371 square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other industrial buildings in the past 12 months.
The block
On this tax block, PincusCo has identified the owners of three of the seven commercial properties representing 52,050 square feet of the 71,135 square feet. The two identified owners are Monadnock Development and Joyland Group.
On the tax block, there were three new building construction projects totaling 365,649 square feet. The largest is a 301-unit, 265,987 square-foot residential (R-2) building submitted by Monadnock Development and filed by Frank Dubinsky with plans filed December 8, 2021 and permitted April 13, 2022. The second largest is a 84-unit, 73,135 square-foot residential (R-2) building submitted by Orange Management and filed by Andrew Bradfield with plans filed November 15, 2021 and permitted May 13, 2022.
The majority, or 52 percent of the 71,135 square feet of built space are office buildings, with industrial buildings next occupying 39 percent of the space.
The borrower
The PincusCo database currently indicates that Joyland Group owned at least five commercial properties in New York City with 71,781 square feet and a city-determined market value of $5.3 million. (Market value is typically about 50% of actual value.) The portfolio has $58.3 million in debt, with top three lenders as Cross River Bank, Maxim Capital Group, and Sterling National Bank respectively. Within the portfolio, the bulk, or 91 percent of the 71,781 square feet of built space are O3 properties, with industrial properties next occupying 9 percent of the space. The bulk, or 91 percent of the built space, is in Bronx, with Brooklyn next at 9 percent of the space.
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