Property Resources Corporation signs $57.1M refi for 205-unit rental in Bedford Stuyvesant
Property Resources Corporation through the entity 75 Lewis Avenue LLC as borrower signed a refi loan with lender Acore Capital through the entity Acore Capital Mortgage, LP valued at $57.1 million for the 205-unit residential elevator building (D7) at 75-85 Lewis Avenue in Bedford Stuyvesant, Brooklyn.
The deal closed on November 13, 2024 and was recorded on November 20, 2024. The prior lender was Cain International which held debt that had an original loan amount of $43.2 million.
The property has 175,042 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $326 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 Property Resources Corporation was Matthew Linde. The signatory for Acore Capital was David Dancer.
The property
The residential elevator building with 205 residential units in Bedford Stuyvesant has 175,042 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 750 feet and is 200 feet deep with a total lot size of 40,050 square feet. The lot is irregular. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $9.7 million. The most recent loan totaled $43.2 million and was provided by Cain International on June 8, 2023.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received three DOB violations, $7,500 in ECB penalties, and $8,600 in OATH penalties in the last year.
Development
On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 11,753 square feet. The largest, 321595190, is a major alteration project for a 205-unit, 170,094 square-foot R-2 building submitted by David Gartenlaub with plans filed October 9, 2019 and permitted May 12, 2021. The second largest, 320597939, is a major alteration project for a 121-unit, 121,618 square-foot R-2 building submitted by Joe Luban with plans filed December 22, 2014 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 114,500 square feet on the block.The identified owner is Property Resources Corporation.
There are no active new building construction projects on this tax block.
All properties are specialty.
The borrower
The PincusCo database currently indicates that Property Resources Corporation owned at least two commercial properties with 781 residential units in New York City with 811,025 square feet and a city-determined market value of $57.2 million. (Market value is typically about 50% of actual value.) The portfolio has $522.9 million in debt, with top three lenders as NYC Housing Development Corporation, Cain International, and Pacific Western Bank respectively. Within the portfolio, the bulk, or 86 percent of the 811,025 square feet of built space are elevator properties, with specialty properties next occupying 14 percent of the space. They are all located in Brooklyn.
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