Kingsdel signs $7M loan with Urban Standard for 56-unit developments in Brooklyn
Kingsdel Real Estate through the entity 447 Fenimore 2022 LLC as borrower signed an acquisition loan with lender Urban Standard Capital through the entity USC 447 Fenimore LLC valued at $7 million for five properties including the industrial building (E1) at 629 New York Avenue in East Flatbush, Brooklyn, retail building (K1) at 625 New York Avenue in East Flatbush, Brooklyn, and specialty building (Z9) at 447 Fenimore Street in Prospect Lefferts Gardens, Brooklyn.
On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 56,876 square feet. The largest is a new building project for a 45-unit, 43,380 square-foot R-2 building developed by Nigel Boyden with plans filed September 16, 2022 and it has not been permitted yet. The second largest is a new building project for a 11-unit, 13,496 square-foot R-2 building developed by Nigel Boyden with plans filed September 16, 2022 and it has not been permitted yet.
The deal closed on February 22, 2023 and was recorded on March 10, 2023. The five properties have 2,800 square feet of built space and 45,592 square feet of additional air rights for a total buildable of 48,357 square feet according to PincusCo analysis of city data. The loan price per built square foot is $2,500 and the price per buildable square foot is $144 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 Kingsdel Real Estate was Nigel Boyden.
Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 447 Fenimore Street.
Prior sales and revenue
Out of the five properties, two with a total of 2,800 square feet of built space generated revenue of $74,204 per year.
The property
The 447 Fenimore Street parcel has frontage of 45 feet and is 100 feet deep with a total lot size of 4,500 square feet. 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 $199,000.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have not received any significant violations in the last year.
The neighborhood
In Prospect Lefferts Gardens, the majority, or 55 percent of the 11.1 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 24 percent of the space. In sales, Prospect Lefferts Gardens has the 43rd highest sale turnover among other neighborhoods in Brooklyn with $48.7 million in sales volume in the last two years. For development, Prospect Lefferts Gardens has had very little major development activity relative to other neighborhoods.It had 208,732 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.
The block
On the tax block of 447 Fenimore Street, PincusCo has identified the owners of two of the 13 commercial properties representing 39,633 square feet of the 105,152 square feet. The two identified owners are Yaakov Geldzahler and Wolf Sicherman.
On the tax block, there was one new building construction project filed totaling 13,496 square feet. It is a 11-unit, 13,496-square-foot R-2 building developed by Nigel Boyden with plans filed September 16, 2022 and it has not been permitted yet.
the majority, or 84 percent of the 105,152 square feet of built space are walkup buildings, with mixed-use buildings next occupying 9 percent of the space.
The borrower
The PincusCo database currently indicates that Kingsdel Real Estate owned at least five commercial properties in New York City with 2,800 square feet and a city-determined market value of $721,000. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 71 percent of the 2,800 square feet of built space are industrial properties, with retail properties next occupying 29 percent of the space. They are all located in Brooklyn.
Direct link to Acris document. link