Nalcorp signs $14M refi loan with Bank of Montreal for two properties in Bedford Stuyvesant

Nalcorp through the entity 880 Dekalb LLC as borrower signed a refi loan with lender Bank of Montreal through the entity Bank Of Montreal valued at $14 million for two properties with 47 residential units including the 41-unit residential elevator building (D1) at 876 Dekalb Avenue in Bedford Stuyvesant, Brooklyn and six-unit residential walkup building (C2) at 374 Kosciuszko Street in Bedford Stuyvesant, Brooklyn.
The deal closed on March 28, 2024 and was recorded on April 4, 2024. The prior lender was Investors Bank which held debt that had an original loan amount of $13.8 million.The two properties have 40,453 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $346 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 Nalcorp was Anshel Fridman. The signatory for Bank of Montreal was Michael Birajiclian.

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 876 Dekalb Avenue.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Anshel Friedman, head officer and Yehuda Friedman, site manager. The business entity is 880 Dekalb Llc.

The property

The residential elevator building with 41 residential units in Bedford Stuyvesant has 40,453 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 100 feet deep with a total lot size of 7,499 square feet. The lot is irregular. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The property has a 421A exemption that started in 2018 and expires in 2033. The city-designated market value for the property in 2022 is $5.8 million.

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 $50 in OATH penalties in the last year.

Development

For the tax lot buildings, two out of the two buildings received a initial certificate of occupancy in the last ten years. 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 876 Dekalb Avenue, PincusCo has identified the owners of 11 of the 22 commercial properties representing 156,555 square feet of the 215,755 square feet. The largest owner is Yidel Kohn, followed by Winston Litchmore Jr. and then Shaindy Schwartz.
There are no active new building construction projects on this tax block.

The majority, or 34 percent of the 215,755 square feet of built space are walkup buildings, with elevator buildings next occupying 33 percent of the space.

The borrower

The PincusCo database currently indicates that Nalcorp owned at least two commercial properties in New York City with 18,546 square feet and a city-determined market value of $2.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are industrial properties. They are all located in Brooklyn.

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