Maxim Properties signs $14.5M refi with Benmark Capital for shelter in East New York

Maxim Properties through the entity Triple Five Holdings, L.L.C. as borrower signed a refi loan with lender Benmark Capital through the entity Benmark VNB Lender LLC valued at $14.5 million for the specialty 157-bed homeless shelter building (M1) run by Care for the Homeless at 476-486 Liberty Avenue in East New York, Brooklyn.
The deal closed on October 1, 2024 and was recorded on October 16, 2024. The prior lender was LG Capital Partners which held debt that had an original loan amount of $12.5 million.The property has 15,750 square feet of built space and 14,200 square feet of additional air rights for a total buildable of 30,000 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $920 and the price per buildable square foot is $483 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 signatory for Maxim Properties was Hillel D. Krinsky. The signatory for Benmark Capital was Mark Simon.

The property

The specialty building in East New York has 15,750 square feet of built space and 14,200 square feet of additional air rights for a total buildable of 30,000 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 square feet. The zoning is M1-4/R6A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $327,000. The most recent loan totaled $9.9 million and was provided by Liberty Lenders on April 23, 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 received one DOB violation, $625 in ECB penalties, and $7,825 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project, 321595939, for a 11-unit, 27,865 square-foot R-1 building. The project was submitted by David Krinsky with plans filed November 18, 2019 and permitted May 21, 2021.

The neighborhood

In East New York, The bulk, or 40 percent of the 44.6 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 21 percent of the space. In sales, East New York has 1.2 times the average sales volume among other neighborhoods with $315.3 million in sales volume in the last two years and is the 22nd highest in Brooklyn. For development, East New York is the 10th most active neighborhood among other neighborhoods. It had 4.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 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 4,500 square feet of the 9,750 square feet. The identified owner is Mhany Management.
On the tax block, there were two new building construction projects totaling 6,100 square feet. The largest is a three-unit, 3,050 square-foot residential (R-2) building submitted by Yair Mullokandov with plans filed May 31, 2022 and it has not been permitted yet. The second largest is a three-unit, 3,050 square-foot residential (R-2) building submitted by Yair Mullokandov with plans filed May 31, 2022 and it has not been permitted yet.

The majority, or 100 percent of the 9,750 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 Maxim Properties owned at least two commercial properties in New York City with 57,750 square feet and a city-determined market value of $10.6 million. (Market value is typically about 50% of actual value.) The portfolio has $22 million in debt, borrowed from Flushing Bank and Liberty Lenders. Within the portfolio, the bulk, or 73 percent of the 57,750 square feet of built space are office properties, with M1 properties next occupying 27 percent of the space. The bulk, or 73 percent of the built space, is in Queens, with Brooklyn next at 27 percent of the space.

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