Namdar, H Holding, Klosed sign $15M refi with Preferred Bank for industrial in Mott Haven

Namdar Realty Group, H Holding Group, and Klosed Properties through the entity H Holding 780 LLC (and others) as borrowers signed a refi loan with lender Preferred Bank valued at $15 million for the industrial building at 780 East 135th Street in Mott Haven, Bronx.
The deal closed on March 18, 2022 and was recorded on April 22, 2022. The prior lender was A10 Capital which held debt that had an original loan amount of $19.5 million. The property has 84,650 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $177 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 owner bought the property on November 26, 2019, for $17.5 million. The signatory for Namdar Realty Group, H Holding Group, and Klosed Properties was Igal Namdar, Sharon Hakmon, and Steven Kachanian. The signatory for Preferred Bank was Nick Wang. Sharon Hakmon is the founder of H Holding Group. Steven Kachanian is the principal of Klosed Properties. 

Prior sales and revenue

The 84,650-square-foot property generated revenue of $809,254 or $10 per square foot, according to the most recent income and expense figures.

The property

The 780 East 135th Street parcel has frontage of 200 feet and is 109 feet deep with a total lot size of 21,800 square feet. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $3.6 million. The most recent loan totaled $19.5 million and was provided by A10 Capital on November 26, 2019.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received one DOB violation in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Mott Haven, the bulk, or 38 percent of the 43.4 million square feet of commercial built space are residential elevator buildings, with industrial buildings next occupying 23 percent of the space. In sales, Mott Haven has 2.7 times the average sales volume among other neighborhoods with $744 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven is the 7th most active neighborhood among other neighborhoods. It had 4.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the seven commercial properties representing 222,255 square feet of the 253,625 square feet. The two identified owners are City of New York and H Holding Group. There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 253,625 square feet of built space are industrial buildings.

The borrower

The PincusCo database currently indicates that Klosed Properties owned at least 15 commercial properties with 165,061 square feet and a city-determined market value of $51.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 59 percent of the 165,061 square feet of built space are residential walkup properties, with hotel properties next occupying 30 percent of the space. The bulk, or 53 percent of the built space, is in Manhattan, with Brooklyn next at 36 percent of the space.
The PincusCo database currently indicates that Namdar Realty Group owned at least 14 commercial properties with 407,364 square feet and a city-determined market value of $98.7 million. (Market value is typically about 50% of actual value.) The portfolio has $100.6 million in debt, with top three lenders as Benefit Street Partners, Ladder Capital, and Signature Bank respectively. Within the portfolio, the bulk, or 47 percent of the 407,364 square feet of built space are office properties, with residential elevator properties next occupying 29 percent of the space. The bulk, or 85 percent of the built space, is in Manhattan, with Brooklyn next at 8 percent of the space.
The PincusCo database currently indicates that H Holding Group owned at least one commercial property with 84,650 square feet and a city-determined market value of $4.5 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Bronx.

Surrounding

Within a 400-foot radius of 780 East 135th Street, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
Of those five items, one was in new building development. It was a new building permit issued on July 29, 2021 for a 113,289-square-foot R-2 building with 133 residential units at 750 East 134th Street.
One of those five items was a sale which Housing Partnership Development Corporation bought the 900-square-foot, one-unit industrial (E9) on 750 East 134th Street for $6.5 million from Altmark Group on July 20, 2021.
Of those five items, three were loans above $5 million totaling $72.3 million. The most recent of the three was Altmark Group which borrowed $7 million from Dime Community Bank secured by the 128,000-square-foot, 10-unit industrial (F5) on 728 East 136th Street on March 4, 2022.

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