Lam Group signs $41M refi loan with Bank Hapoalim for hotel in Downtown Brooklyn
Lam Group through the entity Ahsat Holdings LLC as borrower signed a refi loan with lender Bank Hapoalim valued at $41 million for the hotel building (H2) at 216 Duffield Street in Downtown Brooklyn, Brooklyn.
The deal closed on April 15, 2024 and was recorded on April 22, 2024. The prior lender was East West Bank which held debt that had an original loan amount of $42.5 million.
The property has 94,420 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $434 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 signatories for the Lam Group were Shuet Chun Lam, Joann Lee, Charles K. Luk, Leon K. Luk, Kin Chung Lam, Keith Lam, Hung Luk, Yuk Jin Lam Suey and Jin Lam Tang. The signatories for Bank Hapoalim were Mimi Vu and Benjamin Azizi.
Prior sales and revenue
The owners according to the Department of Housing Preservation and Development includes Kin Chun Lam, head officer and Joann Lee, officer. The business entity is Brooklyn Downtown Hotel, Llc.
The property
The hotel building in Downtown Brooklyn has 94,420 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 61 feet and is 100 feet deep with a total lot size of 6,198 square feet. The zoning is C6-4.5 which allows for up to 12 times floor area ratio (FAR) for commercial. The city-designated market value for the property in 2022 is $21.1 million. The most recent loan totaled $42.5 million and was provided by East West Bank on November 13, 2023.
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 received $4,380 in OATH penalties in the last year.
Development
There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.
The neighborhood
In Downtown Brooklyn, The bulk, or 40 percent of the 22.4 million square feet of commercial built space are office buildings, with elevator buildings next occupying 24 percent of the space. In sales, Downtown Brooklyn has 3.4 times the average sales volume among other neighborhoods with $933.1 million in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Downtown Brooklyn has 3.5 times the average amount of major developments relative to other neighborhoods and is the 3rd highest in Brooklyn. It had 3.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 17 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of six of the six commercial properties representing 316,627 square feet of the 316,627 square feet. The largest owner is United American Land, followed by Thor Equities and then Solil Management.
There are no active new building construction projects on this tax block.
The majority, or 84 percent of the 316,627 square feet of built space are hotel buildings, with office buildings next occupying 11 percent of the space.
The borrower
The PincusCo database currently indicates that Lam Group owned at least eight commercial properties with 192 residential units in New York City with 1,432,846 square feet and a city-determined market value of $400.3 million. (Market value is typically about 50% of actual value.) The portfolio has $459.1 million in debt, with top three lenders as Shanghai Commercial Bank, H.I.G. Capital, and Deutsche Bank respectively. Within the portfolio, the bulk, or 70 percent of the 1,432,846 square feet of built space are hotel properties, with elevator properties next occupying 28 percent of the space. The bulk, or 81 percent of the built space, is in Manhattan, with Brooklyn next at 19 percent of the space.
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