Quadrum signs $126M construction loan with Madison Realty for 173-unit project in Greenpoint

Quadrum Global through the entity Qbdk Huron, LLC as borrower signed a new construction loan with lender Madison Realty Capital through the entity 1 Huron Lender 1 LLC valued at $126 million for the 173-unit residential elevator building project (D7) at 29 Huron Street in Greenpoint, Brooklyn.
The deal closed on June 30, 2022 and was recorded on July 13, 2022. The property has 227,788 square feet of built space and 129,272 square feet of additional air rights for a total buildable of 356,967 square feet according to PincusCo analysis of city data. The loan price per built square foot is $553 and the price per buildable square foot is $352 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 owner bought the property on July 31, 2014, for $45.5 million. The signatory for Quadrum Global was Anoop Rustgi and Amir Setayesh. The signatory for Madison Realty Capital was David Speiser. The financing is composed of an $8.2 million land loan, a $105.5 million building loan and a $11.8 million project loan. Madison Realty Capital borrowed an undisclosed amount from Axos Bank, and collaterally assigned to the bank an interest in the loans.

The property

The 29 Huron Street parcel has frontage of 100 feet and is 635 feet deep with a total lot size of 146,900 square feet. The lot is irregular. 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 $7.7 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 received $21,200 in ECB penalties and $14,900 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 173-unit, 178,031-square-foot R-2 building. The project was developed by Setayesh Amir with plans filed January 11, 2019 and permitted January 26, 2022.

The neighborhood

In Greenpoint, the bulk, or 28 percent of the 24.2 million square feet of commercial built space are residential walkup buildings, with industrial buildings next occupying 26 percent of the space. In sales, Greenpoint has 1.9 times the average sales volume among other neighborhoods with $619.6 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, Greenpoint has 3.6 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Brooklyn. It had 3.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 15 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the three commercial properties representing 227,788 square feet of the 252,722 square feet. The identified owner is Quadrum. There is one active new building construction project totaling 178,031 square feet. It is a 173-unit, 178,031-square-foot R-2 building developed by Setayesh Amir with plans filed January 11, 2019 and permitted January 26, 2022.

The majority, or 90 percent of the 252,722 square feet of built space are residential elevator buildings, with industrial buildings next occupying 10 percent of the space.

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