Nahman Lichtenstein signs $64M refi with Varde Partners for 150-unit project in Greenwood Heights

Nahman Lichtenstein through the entity 867 4th Avenue LLC as borrower signed a refi loan with lender Varde Partners through the entity VMC Master Lender Upper Reit LLC valued at $64 million for the 150-unit residential elevator project at 867-875 4th Avenue in Greenwood Heights, Brooklyn.
The deal closed on March 31, 2023 and was recorded on April 4, 2023. The prior lender was Madison Realty Capital which held debt that had an original loan amount of $48 million.
The property has 101,950 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $627 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 affiliated owner bought the property on July 9, 2018, for $19.8 million. The signatory for Nahman Lichtenstein was Nahman Shimon Lichtenstein. The signatory for Varde Partners was Jon Miller. Nahman Lichtenstein is the father of Michael Lichtenstein, who along with partner Toby Moskovits own Heritage Equity Partners, which filed to build the building. Heritage Equity Partners has not been involved with the project since the end of 2021, according to a person familiar with the property.

The property

The residential elevator building with 150 residential units in Greenwood Heights has 101,950 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 150 feet deep with a total lot size of 25,041 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.7 million. The most recent loan totaled $48 million and was provided by Madison Realty Capital on January 19, 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 $1,250 in ECB penalties and $1,300 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project for a 150-unit, 101,950 square-foot R-2 building. The project was submitted by Heritage Equity Partners and filed by Toby Moskovits with plans filed June 20, 2018 and permitted December 11, 2019.

The block

On this tax block, PincusCo has identified the owners of two of the two commercial properties representing 115,350 square feet of the 115,350 square feet. The two identified owners are Heritage Equity Partners and 151 18th Street Llc.
On the tax block, there was one new building construction project filed totaling 101,950 square feet. It is a 150-unit, 101,950 square-foot residential (R-2) building submitted by Heritage Equity Partners and filed by Toby Moskovits with plans filed June 20, 2018 and permitted December 11, 2019.

The majority, or 88 percent of the 115,350 square feet of built space are elevator buildings, with walkup buildings next occupying 12 percent of the space.

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