Nursing home owner Benjamin Landa pays $40.4M to Marx Development for facility in East New York

Nursing home owner Benjamin Landa through the entity Spring Creek SNF Realty LLC paid $40.4 million to Marx Development Group through the entity Louisiana Nursing Realty LLC for a nursing home specialty building (I6) at 660 Louisiana Avenue in East New York, Brooklyn. The building is the Spring Creek Rehabilitation & Nursing Care Center.
The deal closed on June 30, 2022 and was recorded on July 25, 2022. The property has 125,836 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $321 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 Marx Development Group was David Marx. The signatory for Benjamin Landa was Benjamin Landa. The American Prospect magazine wrote an article critical of Benjamin Landa, who is affiliated with the nursing home company SentosaCare LLC.

To finance the purchase, Benjamin Landa through the entity Spring Creek Rehabilitation & Nursing Care Center as borrower signed a acquisition loan with lender Dwight Capital through the entity Spring Creek Snf Realty LLC valued at $41 million for the specialty building (I6) at 660 Louisiana Avenue in East New York, Brooklyn. The signatory for Dwight Capital was Adam Sassouness.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Benjamin Landa had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Marx Development Group had not purchased any other properties and sold two properties in one transaction for a total of $53.8 million over the same time period.

The property

The 660 Louisiana Avenue parcel has frontage of 339 feet and is 282 feet deep with a total lot size of 98,375 square feet. The lot is irregular. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $50.2 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 not received any significant violations 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 East New York, the bulk, or 40 percent of the 44.6 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 the 3rd highest sale turnover among other neighborhoods in the city with $2.6 billion in sales volume in the last two years. For development, East New York has 2.8 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Brooklyn. It had 2.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 36 commercial properties representing 118,592 square feet of the 357,766 square feet. The two identified owners are Marx Development Group and Petroleum Marketing Group. There are no active new building construction projects on this tax block.

The majority, or 77 percent of the 357,766 square feet of built space are specialty buildings, with retail buildings next occupying 22 percent of the space.

The seller

The PincusCo database currently indicates that Marx Development Group owned at least 10 commercial properties in New York City with 1,160,307 square feet and a city-determined market value of $182.8 million. (Market value is typically about 50% of actual value.) The portfolio has $733.4 million in debt, with top three lenders as Mack Real Estate Group, Rialto Capital, and Capital Funding Group respectively. Within the portfolio, the bulk, or 49 percent of the 1,160,307 square feet of built space are elevator properties, with hotel properties next occupying 26 percent of the space. The bulk, or 48 percent of the built space, is in Queens, with Manhattan next at 42 percent of the space.

The buyer

The PincusCo database currently indicates that Benjamin Landa owned at least one commercial property in New York City with 33,394 square feet and a city-determined market value of $3.5 million. (Market value is typically about 50% of actual value.) The portfolio has $8.7 million in debt, borrowed from Peapack-Gladstone Bank. The portfolio consists of at least a single specialty property. It is located in Queens.

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