Paul Grosman signs $15M refi for charter school location in Mill Basin

Paul Grosman through the entity Mill Avenue Development, LLC as borrower signed a refi loan with lender Valley National Bank valued at $15 million for two commercial condominium units at 2186 Mill Avenue in Mill Basin, Brooklyn. This is the location of the Hebrew Language Academy Charter School.
The deal closed on March 10, 2023 and was recorded on April 28, 2023. The prior lender was M&T Bank which held debt that had an original loan amount of $12 million.The two properties have 55,077 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $272 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 Paul Grosman was Saul P. Grosman, which is an alternate name for the individual.

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 2186 Mill Avenue.

The property

The specialty condo in Mill Basin has 55,077 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 53,538 square feet. The city-designated market value for the property in 2022 is $9 million. The most recent loan totaled $12 million and was provided by M&T Bank on June 29, 2021.

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 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 $1 million on this tax lot.

The neighborhood

In Mill Basin, The majority, or 74 percent of the 3.3 million square feet of commercial built space are mixed-use buildings, with retail buildings next occupying 9 percent of the space. In sales, Mill Basin has the 39th highest sale turnover among other neighborhoods in Brooklyn with $85.6 million in sales volume in the last two years. For development, Mill Basin has not had any major developments in the last two years.

The block

On the tax block of 2186 Mill Avenue, PincusCo has identified the owners of 11 of the 40 commercial properties representing 2,760,283 square feet of the 3,082,194 square feet. The largest owner is Target Corporation, followed by Signature Investment Group and then Macy’S Inc.
On the tax block, there were three new building construction projects totaling 115,551 square feet. The largest is a 103,179 square-foot educational (E) building submitted by Paul Grosman with plans filed September 18, 2015 and permitted July 31, 2018. The second largest is a 10,722 square-foot assembly (A-2) building submitted by Anthony Williams with plans filed October 26, 2018 and it has not been permitted yet.

The majority, or 78 percent of the 3.1 million square feet of built space are mixed-use buildings, with specialty buildings next occupying 8 percent of the space.

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