Monadnock signs $218.7M construction loan for 321-unit project in East Flatbush
Monadnock Development through the entity Vb Ccpopd Housing Development Fund Corporation as borrower signed a new construction loan with lender NYS Housing Finance Agency valued at $218.7 million for the development site at 564 Utica Avenue in East Flatbush, Brooklyn.
On the lot, there is one active new building construction project for a 321-unit, 338,611 square-foot residential (R-2) building. The project was submitted by Brookdale Hospital Medical Center and filed by Tony Renteria with plans filed January 5, 2022 and it has not been permitted yet.
The deal closed on December 13, 2023 and was recorded on December 22, 2023.
The owner bought the property on December 13, 2023, for $26.7 million. The signatory for Monadnock Development was Nicholas Lembo.
The property
The parcel has frontage of 414 feet and is 200 feet deep with a total lot size of 62,820 square feet. The lot is irregular. 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 $3.1 million. The most recent loan totaled $118.8 million and was provided by NYS Dormitory Authority on December 30, 2020.
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 $6,250 in ECB penalties in the last year.
The neighborhood
In East Flatbush, The bulk, or 32 percent of the 42.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 24 percent of the space. In sales, East Flatbush has near average sales volume among other neighborhoods with $342.2 million in sales volume in the last two years and is the 23rd highest in Brooklyn. For development, East Flatbush has 2 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Brooklyn. It had 2 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 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 zero square feet of the 11,360 square feet. The identified owner is Monadnock Development.
On the tax block, there was one new building construction project filed totaling 338,611 square feet. It is a 321-unit, 338,611 square-foot residential (R-2) building submitted by Brookdale Hospital Medical Center and filed by Tony Renteria with plans filed January 5, 2022 and it has not been permitted yet.
The majority, or 97 percent of the 11,360 square feet of built space are retail buildings, with industrial buildings next occupying 3 percent of the space.
The borrower
The PincusCo database currently indicates that Monadnock Development owned at least 74 commercial properties with 2,933 residential units in New York City with 2,119,587 square feet and a city-determined market value of $276.8 million. (Market value is typically about 50% of actual value.) The portfolio has $646.2 million in debt, with top three lenders as New York City Housing Authority, NYC Housing Development Corporation, and Wells Fargo respectively. Within the portfolio, the bulk, or 65 percent of the 2,119,587 square feet of built space are elevator properties, with walkup properties next occupying 20 percent of the space. The bulk, or 82 percent of the built space, is in Manhattan, with Bronx next at 17 percent of the space.
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