Pennrose signs $72.8M refi loan with Freddie Mac for 11 properties in Bushwick

Pennrose through the entity Bushwick Gardens I LLC as borrower signed a refi loan with lender Freddie Mac through the entity Federal Home Loan Mortgage Corporation valued at $72.8 million for 11 properties including the 120-unit residential walkup building (C1) at 580 Central Avenue in Bushwick, Brooklyn, 120-unit residential walkup building (C1) at 580 Central Avenue in Bushwick, Brooklyn, and 36-unit residential walkup building (C1) at 580 Central Avenue in Bushwick, Brooklyn.
The deal closed on July 27, 2022 and was recorded on August 4, 2022. The 11 properties have 323,432 square feet of built space and 771,000 square feet of additional air rights for a total buildable of 1,094,153 square feet according to PincusCo analysis of city data. The loan price per built square foot is $224 and the price per buildable square foot is $66 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 Pennrose was Timothy I. Henkel.

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 580 Central Avenue.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Timothy Henkel, head officer and Felisha Robles, site manager. The business entities are Pinnacle City Living Llc, Pinnacle City Living Llc., and Bushwick Gardens Llc. Out of the 11 properties, eight with a total of 323,432 square feet of built space generated revenue of $6.2 million per year.

The property

The 580 Central Avenue parcel has frontage of 200 feet and is 600 feet deep with a total lot size of 120,000 square feet. 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 $8 million.The most recent loan totaled $111.5 million and was provided by NYS Housing Finance Agency on July 18, 2019.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received one DOB violation, $625 in ECB penalties, 95 housing violations, $36,025 in OATH penalties, and three housing litigations in the last year.

Development

On these lots, there is one active new building construction project for a 153-unit, 100,053-square-foot R-2 building. The project was developed by Matthew Charney with plans filed March 1, 2022 and it has not been permitted yet.

The block

On the tax block of 580 Central Avenue, PincusCo has identified the owner of the one commercial property that spans that spans 120,440 square feet on the block.The identified owner is Pennrose.
There is one active new building construction project totaling 100,053 square feet. It is a 153-unit, 100,053-square-foot R-2 building developed by Matthew Charney with plans filed March 1, 2022 and permitted June 29, 2022.

All properties are walkup.

The borrower

The PincusCo database currently indicates that Pennrose owned at least 10 commercial properties in New York City with 323,432 square feet and a city-determined market value of $21.7 million. (Market value is typically about 50% of actual value.) The portfolio has $111.5 million in debt, borrowed from NYS Housing Finance Agency. Within the portfolio, the bulk, or 100 percent of the 323,432 square feet of built space are walkup properties, with development properties next occupying 0 percent of the space. They are all located in Brooklyn.

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