NorthEnd Equities signs $18.8M refi loan with TD Bank for office in Borough Park

NorthEnd Equities through the entity Utrecht 48 LLC as borrower signed a refi loan with lender TD Bank valued at $18.8 million for the office building (O5) at 4822 New Utrecht Avenue in Borough Park, Brooklyn.
The deal closed on March 28, 2023 and was recorded on March 30, 2023. The prior lender was A10 Capital.The property has 46,349 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $404 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 August 18, 2015, for $8.2 million. The signatory for NorthEnd Equities was Charles Herzka. The signatory for TD Bank was Ronald E. Alfaro.

The property

The 4822 New Utrecht Avenue parcel has frontage of 179 feet and is 72 feet deep with a total lot size of 17,500 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4.4 million.

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 $1,800 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on December 29, 2021. 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 Borough Park, the bulk, or 24 percent of the 23.1 million square feet of commercial built space are specialty buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, Borough Park has near average sales volume among other neighborhoods with $382.2 million in sales volume in the last two years and is the 19th highest in Brooklyn. For development, Borough Park has had very little major development activity relative to other neighborhoods.It had 777,562 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

The majority, or 81 percent of the 76,403 square feet of built space are retail buildings, with mixed-use buildings next occupying 19 percent of the space.

The borrower

The PincusCo database currently indicates that NorthEnd Equities owned at least one commercial property in New York City with 28,800 square feet and a city-determined market value of $3.2 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single retail property. It is located in Brooklyn.

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