Lightstone Group signs $165.6M refi with JLL for 429-unit rental in Gowanus
Lightstone Group through the entity LSG 365 Bond Street LLC as borrower signed a refi loan with lender JLL through the entity JLL Real Estate Capital LLC valued at $165.6 million for the 429-unit residential elevator building (D6) at 365 Bond Street in Gowanus, Brooklyn.
The deal closed on December 5, 2023 and was recorded on December 8, 2023. The prior lender was Series 2019-GC38 which held debt that had an original loan amount of $113 million.
The property has 323,193 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $512 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 June 20, 2013, for $19 million. The signatory for Lightstone Group was Joseph E. Teichman. The signatory for JLL was Steven D. Henderson.
Prior sales and revenue
The owners according to the Department of Housing Preservation and Development includes Ariel Feldhamer, head officer and Jennifer Jennings, officer. The business entity is Lsg 365 Bond Street LLC. The 323,193-square-foot property generated revenue of $11.9 million or $37 per square foot, according to the most recent income and expense figures.
The property
The residential elevator building with 429 residential units in Gowanus has 323,193 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 180 feet and is 470 feet deep with a total lot size of 89,300 square feet. The lot is irregular. The zoning is M1-4/R7-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3.44 times FAR for residential. The property has a 421A exemption that started in 2018 and expires in 2043. The city-designated market value for the property in 2022 is $64.4 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 received 14 housing violations, $2,025 in OATH penalties, and one housing litigation in the last year.
Development
For the tax lot building, it received its initial certificate of occupancy on March 15, 2016. 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 owner of the one commercial property that spans that spans 323,193 square feet on the block. The identified owner is Lightstone Group.
There are no active new building construction projects on this tax block.
All properties are elevator.
The borrower
The PincusCo database currently indicates that Lightstone Group owned at least 34 commercial properties with 2,314 residential units in New York City with 2,823,226 square feet and a city-determined market value of $351.6 million. (Market value is typically about 50% of actual value.) The portfolio has $1 billion in debt, with top three lenders as Goldman Sachs, JPMorgan Chase, and Square Mile Capital Management respectively. Within the portfolio, the bulk, or 61 percent of the 2,823,226 square feet of built space are elevator properties, with hotel properties next occupying 17 percent of the space. The bulk, or 37 percent of the built space, is in Bronx, with Queens next at 26 percent of the space.
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