Meridian Properties signs $10.5M refi for 82-unit rental in Prospect Lefferts Gardens

Meridian Properties through the entity Lefferts Gardens LLC as borrower signed a refi loan with lender Esquire Bank valued at $10.5 million for the 82-unit residential elevator building (D1) at 115 Lincoln Road in Prospect Lefferts Gardens, Brooklyn.
The deal closed on June 22, 2023 and was recorded on September 26, 2023. The prior lender was Signature Bank through a receiver which held debt that had an original loan amount of $10.2 million.
The property has 84,260 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $124 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 September 28, 2005, for $6.7 million. The signatory for Meridian Properties was Michael Niamonitakis. The signatory for Esquire Bank was Steven Dorritie.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Michael Niamonitakis, head officer and James Dimitriades, officer. The business entity is Lefferts Gardens, LLC. The 84,260-square-foot property generated revenue of $990,556 or $12 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 82 residential units in Prospect Lefferts Gardens has 84,260 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 110 feet and is 205 feet deep with a total lot size of 22,550 square feet. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.1 million. The most recent loan totaled $10.2 million and was provided by Signature Bank on December 27, 2022.

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 two DOB violations, $7,500 in ECB penalties, 36 housing violations, and $7,550 in OATH penalties in the last year.

Development

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 owners of seven of the 11 commercial properties representing 436,344 square feet of the 525,279 square feet. The largest owner is Meridian Properties, followed by Meng Chang He and then Lilmor Management.
There are no active new building construction projects on this tax block.

The majority, or 98 percent of the 525,279 square feet of built space are elevator buildings, with mixed-use buildings next occupying 2 percent of the space.

The borrower

The PincusCo database currently indicates that Meridian Properties owned at least 109 commercial properties with 3,841 residential units in New York City with 3,663,257 square feet and a city-determined market value of $234.3 million. (Market value is typically about 50% of actual value.) The portfolio has $121.3 million in debt, with top three lenders as Signature Bank, Dime Community Bank, and New York Community Bank respectively. Within the portfolio, the bulk, or 61 percent of the 3,663,257 square feet of built space are elevator properties, with walkup properties next occupying 38 percent of the space. They are all located in Brooklyn.

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