Joyland, Loketch sign $150M refi with TPG for 270-unit project in Williamsburg

Joyland Group and Loketch Group through the entity 555 Broadway LLC as borrower signed a refi loan with lender TPG Real Estate Partners through the entity Treco Loan Origination Spv 31, LLC valued at $150 million for the newly built 270-unit building at 28 Boerum Street in Williamsburg, Brooklyn.

The deal closed on July 26, 2024 and was recorded on July 31, 2024. The prior lender was Slate Property Group which held debt that had an original loan amount of $137 million.
The owner bought the property on January 25, 2022, for $53.9 million. The signatory for Joyland Group and Loketch Group was Joel Wertzberger, Allan Lebovits, and Pinchos Loketch. The signatory for TPG Real Estate Partners was Martin Davidson.

The property

The parcel has frontage of 316 feet and is 195 feet deep with a total lot size of 45,128 square feet. The lot is irregular. The zoning is C4-4 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 3.44 times FAR for residential. The city-designated market value for the property in 2022 is $4.2 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 not received any significant violations in the last year.

The neighborhood

In Williamsburg, The bulk, or 39 percent of the 50.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 25 percent of the space. In sales, Williamsburg has the 5th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, Williamsburg has 4.1 times the average amount of major developments relative to other neighborhoods and is the 2nd highest in Brooklyn. It had 4.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the two commercial properties representing 52,648 square feet of the 52,648 square feet. The two identified owners are Jacob Fulop and Meral Property Group.

The borrower

The PincusCo database currently indicates that Loketch Group owned at least 19 commercial properties with 219 residential units in New York City with 304,644 square feet and a city-determined market value of $53.4 million. (Market value is typically about 50% of actual value.) The portfolio has $157.1 million in debt, with top three lenders as Societe Generale, Maxim Capital Group, and BridgeCity Capital respectively. Within the portfolio, the bulk, or 67 percent of the 304,644 square feet of built space are elevator properties, with office properties next occupying 17 percent of the space. They are all located in Brooklyn.
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 $124.3 million in debt, with top three lenders as iCross Capital, Cross River Bank, and Maxim Capital Group 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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