Lalezarian Properties signs $29.9M refi for 266-unit rental in Downtown Brooklyn

Lalezarian Properties through the entity Brooklyn Tillary LLC as borrower signed a refi loan with lender TD Bank valued at $29.9 million for the 266-unit residential elevator building (D7) at 277 Gold Street in Downtown Brooklyn, Brooklyn.
The deal closed on March 12, 2024 and was recorded on March 18, 2024. The prior lender was Santander Bank which held debt that had an original loan amount of $34 million.
The property has 125,691 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $238 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 Lalezarian Properties was Kevin Lalezarian. The signatory for TD Bank was Brian J. Terry.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Kevin Lalezarian, head officer and David Sani, officer. The business entity is Brooklyn Tillary Llc.

The property

The residential elevator building with 266 residential units in Downtown Brooklyn has 125,691 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 59 feet and is 170 feet deep with a total lot size of 14,395 square feet. The lot is irregular. The zoning is C6-2 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential. The property has a 421A exemption that started in 2012 and expires in 2027. The city-designated market value for the property in 2022 is $34.5 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.

Development

For the tax lot building, it received its initial certificate of occupancy on March 3, 2015. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of two of the four commercial properties representing 418,946 square feet of the 714,903 square feet. The two identified owners are Marvin Rubinstein and Lalezarian Properties.
There are no active new building construction projects on this tax block.

The majority, or 63 percent of the 714,903 square feet of built space are elevator buildings, with industrial buildings next occupying 37 percent of the space.

The borrower

The PincusCo database currently indicates that Lalezarian Properties owned at least 15 commercial properties with 1,450 residential units in New York City with 1,473,448 square feet and a city-determined market value of $402.6 million. (Market value is typically about 50% of actual value.) The portfolio has $724.7 million in debt, with top three lenders as JPMorgan Chase, New York Community Bank, and Bank of New York Mellon respectively. Within the portfolio, the bulk, or 89 percent of the 1,473,448 square feet of built space are elevator properties, with office properties next occupying 7 percent of the space. The bulk, or 62 percent of the built space, is in Manhattan, with Brooklyn next at 38 percent of the space.

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