Phipps Houses signs $224.6M construction loan for 436 units in Cypress Hills

The affordable housing developer Phipps Houses through the entity Atlantic Chestnut II Associates Lihtc LLC as borrower signed a new construction loan with lender NYC Housing Development Corporation valued at $224.6 million for the property on Chestnut Street in Cypress Hills, Brooklyn.
The deal closed on December 15, 2022 and was recorded on December 29, 2022.
The signatory for Phipps Houses was Michael Wadman. The signatory for NYC Housing Development Corporation was Lauren Connors. This is for a 435-unit development.

The property

PincusCo cannot determine the lot area of the N/A Chestnut Street parcel at this time.

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

On the lot, there is one active new building construction project for a 436-unit, 408,695 square-foot R-2 building. The project was submitted by Michael Wadman of Phipps Houses with plans filed December 27, 2021 and it has not been permitted yet.

The block

On this tax block, PincusCo has identified the owner of the one commercial property that spans that spans zero square feet on the block.The identified owner is Phipps Houses.
On the tax block, there were two new building construction projects totaling 807,047 square feet. The largest is a 403-unit, 398,352-square-foot R-2 building developed by Michael Wadman with plans filed January 27, 2017 and permitted July 1, 2021. The second largest is a 436-unit, 408,695-square-foot R-2 building developed by Michael Wadman with plans filed December 27, 2021 and it has not been permitted yet.

All properties are development.

The borrower

The PincusCo database currently indicates that Phipps Houses owned at least 91 commercial properties in New York City with 5,635,105 square feet and a city-determined market value of $436.3 million. (Market value is typically about 50% of actual value.) The portfolio has $1 billion in debt, with top three lenders as NYC Housing Development Corporation, Citibank, and City of New York respectively. Within the portfolio, the bulk, or 78 percent of the 5,635,105 square feet of built space are elevator properties, with walkup properties next occupying 16 percent of the space. The bulk, or 50 percent of the built space, is in Bronx, with Manhattan next at 35 percent of the space.

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