Kenneth Chan, Miriam Chan sign $50M refi with Morgan Stanley for specialty in Greenpoint

Kenneth Chan and Miriam Chan through the entity Java Landing LLC as borrower signed a refi loan with lender Morgan Stanley through the entity Morgan Stanley Bank valued at $50 million for the specialty building (J6) at 8-48 Java Street in Greenpoint, Brooklyn.
The deal closed on September 2, 2022 and was recorded on September 16, 2022. The prior lender was Series 2017-C1 which held debt that had an original loan amount of $33 million. The property has 98,910 square feet of built space and 139,160 square feet of additional air rights for a total buildable of 238,140 square feet according to PincusCo analysis of city data. The loan price per built square foot is $505 and the price per buildable square foot is $209 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 signatory for Kenneth Chan and Miriam Chan was Kenneth Chan.

The property

The 8-48 Java Street parcel has frontage of 200 feet and is 490 feet deep with a total lot size of 98,000 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $13.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Greenpoint, the bulk, or 29 percent of the 23.4 million square feet of commercial built space are walkup buildings, with industrial buildings next occupying 27 percent of the space. In sales, Greenpoint has 2 times the average sales volume among other neighborhoods with $681.9 million in sales volume in the last two years and is the 7th highest in Brooklyn. For development, Greenpoint has 3.4 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Brooklyn. It had 3.3 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

There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 98,910 square feet of built space are specialty buildings.

The borrower

The PincusCo database currently indicates that Miriam Chan owned at least nine commercial properties in New York City with 136,606 square feet and a city-determined market value of $14.5 million. (Market value is typically about 50% of actual value.) The portfolio has $21 million in debt, with top three lenders as Preferred Bank, Dalan Management, and SKW Funding respectively. Within the portfolio, the bulk, or 72 percent of the 136,606 square feet of built space are industrial properties, with walkup properties next occupying 17 percent of the space. The bulk, or 81 percent of the built space, is in Brooklyn, with Manhattan next at 19 percent of the space.

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