L+M Development signs $106.6M construction loan for development in Brownsville
L+M Development Partners through the entity Mgx Associates Phase 2 Ce LLC as borrower signed a new construction loan with lender NYS Housing Finance Agency and the NYC Department of Housing Preservation and Development valued at $106.6 million for eight properties in Brownsville, Brooklyn.
On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 155,387 square feet. The largest is a new building project for an 88-unit, 73,784 square-foot R-2 building submitted by L+M Development Partners and filed by David Dishy with plans filed August 5, 2021 and permitted April 2, 2024. The second largest is a new building project for a 84-unit, 81,603 square-foot R-2 building submitted by L+M Development Partners and filed by David Dishy with plans filed August 5, 2021 and permitted April 1, 2024.
The deal closed on March 27, 2024 and was recorded on April 8, 2024.
The signatory for L+M Development Partners was Spencer Orkus.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $300 in OATH penalties in the last year.
The neighborhood
In Brownsville, The bulk, or 46 percent of the 28.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Brownsville has had very little sales volume relative to other neighborhoods with $166.7 million in sales volume in the last two years. For development, Brownsville has 1.2 times the average amount of major developments relative to other neighborhoods and is the 13th highest in Brooklyn. It had 1.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.
The block
On the tax block, PincusCo has identified the owners of one of the two commercial properties representing 116,000 square feet of the 116,000 square feet. The identified owner is L+M Development Partners.
The majority, or 100 percent of the 116,000 square feet of built space are walkup buildings, with development buildings next occupying 0 percent of the space.
The borrower
The PincusCo database currently indicates that L+M Development Partners owned at least 217 commercial properties with 20,392 residential units in New York City with 19,569,988 square feet and a city-determined market value of $2.1 billion. (Market value is typically about 50% of actual value.) The portfolio has $3.1 billion in debt, with top three lenders as NYC Housing Development Corporation, Wells Fargo, and NYS Housing Finance Agency respectively. Within the portfolio, the bulk, or 83 percent of the 19,569,988 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. The bulk, or 47 percent of the built space, is in Brooklyn, with Manhattan next at 35 percent of the space.
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