Metropolitan Realty signs $14.1M refi with Greystone for four walkups in East New York

Metropolitan Realty Group through the entity Penn Gardens Associates, L.P. as borrower signed a refi loan with lender Greystone & Co. through the entity Greystone Servicing Company LLC valued at $14.1 million for four residential walkup properties with 90 residential units including the 29-unit residential walkup building (C1) at 366 Pennsylvania Avenue in East New York, Brooklyn, 29-unit residential walkup building (C1) at 378 Pennsylvania Avenue in East New York, Brooklyn, and 16-unit residential walkup building (C1) at 350 Pennsylvania Avenue in East New York, Brooklyn.
The deal closed on September 6, 2024 and was recorded on September 13, 2024. The prior lender was Community Preservation Corporation which held debt that had an original loan amount of $7.6 million.The four properties have 83,568 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $168 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 Metropolitan Realty Group was Scott Jaffee. The signatory for Greystone & Co. was Tracy Terry.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 366 Pennsylvania Avenue.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Scott Jaffee, head officer and Melania Cinque, officer. The business entity is Penn Gardens Associates.

The property

The residential walkup building with 29 residential units in East New York has 83,568 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 85 feet and is 100 feet deep with a total lot size of 8,499 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.3 million. The most recent loan totaled $7.6 million and was provided by Signature Bank on October 10, 2019.

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 15 housing violations and $50 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 the tax block of 366 Pennsylvania Avenue, PincusCo has identified the owners of five of the eight commercial properties representing 87,780 square feet of the 97,468 square feet. The two identified owners are Metropolitan Realty Group and Walid Alzokari.
There are no active new building construction projects on this tax block.

The majority, or 86 percent of the 97,468 square feet of built space are walkup buildings, with mixed-use buildings next occupying 14 percent of the space.

The borrower

The PincusCo database currently indicates that Metropolitan Realty Group owned at least 54 commercial properties with 2,827 residential units in New York City with 2,653,038 square feet and a city-determined market value of $448.7 million. (Market value is typically about 50% of actual value.) The portfolio has $372.3 million in debt, with top three lenders as Lument, Greystone & Co., and Signature Bank respectively. Within the portfolio, the bulk, or 86 percent of the 2,653,038 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. The bulk, or 67 percent of the built space, is in Manhattan, with Brooklyn next at 22 percent of the space.

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