LBA Realty signs $22.8M initial loan with City National Bank for industrial in Red Hook
LBA Realty through the entity 110 Beard Street, LLC as borrower signed a initial loan with lender City National Bank through the entity City National Bank valued at $22.8 million for the industrial building (F5) at 236 Richards Street in Red Hook, Brooklyn.
The deal closed on May 31, 2023 and was recorded on June 13, 2023. The property has 88,000 square feet of built space and 29,249 square feet of additional air rights for a total buildable of 116,998 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $258 and the price per buildable square foot is $194 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 owner bought the property on August 9, 2022, for $34 million. The signatory for LBA Realty was Tom Rutherford. The signatory for City National Bank was Brandon Roberts.
Prior sales and revenue
The 88,000-square-foot property generated revenue of $1 million or $11 per square foot, according to the most recent income and expense figures.
The property
The industrial building in Red Hook has 88,000 square feet of built space and 29,249 square feet of additional air rights for a total buildable of 116,998 square feet according to a PincusCo analysis of city data. The parcel has frontage of 330 feet and is 200 feet deep with a total lot size of 58,499 square feet. The lot is irregular. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $4.3 million. The most recent loan totaled $13.9 million and was provided by Tel Aviv Stock Exchange bondholders on May 6, 2021.
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
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 Red Hook, The bulk, or 49 percent of the 9.4 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 30 percent of the space. In sales, Red Hook has 1.7 times the average sales volume among other neighborhoods with $589.8 million in sales volume in the last two years and is the 10th highest in Brooklyn. For development, Red Hook has had very little major development activity relative to other neighborhoods.It had 387,372 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of eight of the nine commercial properties representing 125,180 square feet of the 135,980 square feet. The largest owner is Phillip Hogue, followed by Leser Group and then LBA Realty.
There are no active new building construction projects on this tax block.
The majority, or 68 percent of the 135,980 square feet of built space are industrial buildings, with hotel buildings next occupying 17 percent of the space.
The borrower
The PincusCo database currently indicates that Lba Realty owned at least five commercial properties in New York City with 102,610 square feet and a city-determined market value of $13.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 93 percent of the 102,610 square feet of built space are industrial properties, with specialty properties next occupying 7 percent of the space. The bulk, or 93 percent of the built space, is in Brooklyn, with Queens next at 7 percent of the space.
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