Nonprofit signs $32.3M new construction loan for 66-unit project for homeless in East New York

The nonprofit Concern for Independent Living through the entity Concern Logan Housing Development Fund Corp. as borrower signed a new construction loan with lender JPMorgan Chase and NYS Homeless And Housing Assistance valued at $32.3 million for the 66-unit development project at 2602 Pitkin Avenue in East New York, Brooklyn.

On the lot, there is one active new building construction project for a 66-unit R-2 building. The project was submitted by Concern for Independent Living and filed by Ralph Fasano with plans filed October 22, 2021 and it has not been permitted yet.
The deal closed on April 19, 2023 and was recorded on May 4, 2023.
The owner bought the property on February 11, 2021, for $4.4 million. The signatory for Concern for Independent Living was Ralph Fasano.

Prior sales and revenue

The 7,200-square-foot property generated revenue of $120,024 or $17 per square foot, according to the most recent income and expense figures.

The property

The industrial building in East New York has 7,200 square feet of built space and 21,597 square feet of additional air rights for a total buildable of 28,796 square feet according to a PincusCo analysis of city data. The parcel has frontage of 80 feet and is 90 feet deep with a total lot size of 7,199 square feet. 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 $633,000.

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 and $1,000 in OATH penalties in the last year.

The neighborhood

In East New York, The bulk, or 40 percent of the 44.5 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 21 percent of the space. In sales, East New York has 2.4 times the average sales volume among other neighborhoods with $847.4 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, East New York is the 5th most active neighborhood among other neighborhoods. It had 5 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On the tax block, there was one new building construction project filed totaling zero square feet. It is a 66-unit residential (R-2) building submitted by Concern for Independent Living and filed by Ralph Fasano with plans filed October 22, 2021 and it has not been permitted yet.

The majority, or 38 percent of the 43,425 square feet of built space are walkup buildings, with retail buildings next occupying 25 percent of the space.

The borrower

The PincusCo database currently indicates that Concern For Independent Living owned at least five commercial properties with 228 residential units in New York City with 195,346 square feet and a city-determined market value of $28.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 87 percent of the 195,346 square feet of built space are elevator properties, with industrial properties next occupying 11 percent of the space. The bulk, or 87 percent of the built space, is in Brooklyn, with Bronx next at 13 percent of the space.

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