L+M Development signs $57.6M construction loan for 109-unit project in Brownsville
L+M Development Partners through the entity Mgx Associates Phase 2 G LLC as borrower signed a new construction loan with lender NYS Housing Finance Agency valued at $57.6 million for the 109-unit project at 251 Chester Street in Brownsville, Brooklyn.
On the lot, there is one active new building construction project for a 109-unit, 86,340 square-foot R-2 building. The project was submitted by L+M Development Partners and filed by David Dishy with plans filed November 9, 2021.
The deal closed on December 13, 2023 and was recorded on January 5, 2024.
The signatory for L+M Development Partners was Spencer Orkus. The signatory for NYS Housing Finance Agency was Patrick Love.
The property
The parcel has frontage of 251 feet and is 100 feet deep with a total lot size of 25,123 square feet. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.3 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.
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 $164.4 million in sales volume in the last two years. For development, Brownsville has near average amount of major developments among other neighborhoods and is the 20th highest in Brooklyn. It had 853,016 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of one of the six commercial properties representing 5,390 square feet of the 39,690 square feet. The identified owner is Natalie Lewis.
On the tax block, there was one new building construction project filed totaling 86,340 square feet. It is a 109-unit, 86,340 square-foot residential (R-2) building submitted by L+M Development Partners and filed by David Dishy with plans filed November 9, 2021 and it has not been permitted yet.
The majority, or 62 percent of the 39,690 square feet of built space are specialty buildings, with walkup buildings next occupying 19 percent of the space.
The borrower
The PincusCo database currently indicates that L+M Development Partners owned at least 216 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 billion in debt, with top three lenders as NYC Housing Development Corporation, Wells Fargo, and Barings 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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