Mordechai Piller signs $78M construction loan with S3 Capital for 147-unit project in Fort Greene
Mordechai Piller through the entity 19 Rockwell Place LLC as borrower signed a new construction loan with lender S3 Capital through the entity S3 Re Rockwell Place Funding LLC valued at $78 million for the office building (O7) at 19 Rockwell Place in Fort Greene, Brooklyn.
There is a 147-unit, 100,652 square-foot residential (R-2) building submitted by Chesky Rosen with plans filed February 2, 2022 and permitted May 20, 2022.
The loan closed on June 15, 2023 and was recorded on June 22, 2023. The property has 29,331 square feet of built space and 71,375 square feet of additional air rights for a total buildable of 100,670 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $2,659 and the price per buildable square foot is $774 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 Mordechai Piller was Mordechai Piller.
The property
The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,067 square feet. The lot is irregular. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $8.6 million.
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, $27,530 in ECB penalties, and $31,130 in OATH penalties in the last year.
The neighborhood
In Fort Greene, The bulk, or 34 percent of the 12.4 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 23 percent of the space. In sales, Fort Greene has 1.6 times the average sales volume among other neighborhoods with $568.6 million in sales volume in the last two years and is the 12th highest in Brooklyn. For development, Fort Greene has 2.2 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Brooklyn. It had 2.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 18 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of four of the 10 commercial properties representing 142,306 square feet of the 279,391 square feet. The largest owner is Victor Reyes, followed by Rockrose Development and then City Of New York.
On the tax block, there were two new building construction projects totaling 518,744 square feet. The largest is a 609-unit, 418,092 square-foot residential (R-2) building submitted by Rockrose Development and filed by Justin Elghanayan with plans filed April 20, 2020 and permitted August 11, 2022. The second largest is a 147-unit, 100,652 square-foot residential (R-2) building submitted by Chesky Rosen and filed by Chesky Rosen with plans filed February 2, 2022 and permitted May 20, 2022.
The majority, or 59 percent of the 279,391 square feet of built space are specialty buildings, with development buildings next occupying 25 percent of the space.
The borrower
The PincusCo database currently indicates that Mordechai Piller owned at least five commercial properties with 102 residential units in New York City with 91,664 square feet and a city-determined market value of $10.7 million. (Market value is typically about 50% of actual value.) The portfolio has $12 million in debt, borrowed from JPMorgan Chase. Within the portfolio, all identified are walkup properties. They are all located in Brooklyn.
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