L+M signs $13.7M ground lease with NYCHA in East New York, obtains $391M rehab loan

L+M Development Partners through the entity Stanley Avenue Preservation Hdfc signed a 99-year lease as tenant valued at $13.7 million with New York City Housing Authority as landlord for NYCHA buildings including 756-unit residential elevator building at 215-247 Wortman Avenue in East New York, Brooklyn, 571-unit residential elevator building at 195-245 Cozine Avenue in East New York, Brooklyn, and 336-unit residential elevator building at 520-530 Stanley Avenue in East New York, Brooklyn. The total number of units is 1,922.
The deal closed on December 28, 2021 and was recorded on January 12, 2022.

L+M Development Partners through the entity Stanley Avenue Preservation Hdfc as borrower signed a rehab construction loan with lender NYC Housing Development Corporation at the same time.

In addition to the NYC HDC loan, L+M obtained a purchase money loan from NYCHA totaling $49.4 million.

The five properties have 2,005,755 square feet of built space and 146,086 square feet of additional air rights according to PincusCo analysis of city data. (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 signatory for New York City Housing Authority was Jonathan Gouveia. The signatory for L+M Development Partners was Jed Resnick.
Prior to this transaction, the buyer L+M Development Partners purchased seven properties in five transactions for a total of $97.2 million and sold eight properties in eight transactions for a total of $105 million over the past 24 months.
The seller New York City Housing Authority had not purchased any properties and ground leased 139 properties in five transactions for a total of $163.2 million over the same time period.
Out of the five properties, four with a total of 2,005,755 square feet of built space generated revenue of $34.7 million per year.

In East New York, the majority, or 31 percent of the 68.3 million square feet of built space are 1-4 family buildings, with residential elevator buildings next occupying 26 percent of the space. In sales, East New York has the 4th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, East New York has 2.5 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Brooklyn. It had 2.2 million square feet of commercial construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.
On the tax block, all properties are residential elevator.
The owners according to the Department of Housing Preservation and Development includes Richard Barnhart, head officer and Michael Prush, officer. The business entities are C&C Apartment Management Llc and Quincy Greene Associates Lp.

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