Quinlan Development Group signs $137.5M refi loan with PCCP for office in Fort Greene
Quinlan Development Group through the entity 41 Flatbush Owner, LLC as borrower signed a loan modification with lender PCCP through the entity PCCP Credit IX Reit-Sub Holdco, LLC valued at $137.5 million for the office building (O6) at 41 Flatbush Avenue in Fort Greene, Brooklyn.
The deal closed on May 23, 2023 and was recorded on May 30, 2023. The prior lender was PCCP which held debt that had an original loan amount of $154.5 million.
The property has 232,174 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $592 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 March 2, 2015, for $90 million. The signatory for Quinlan Development Group was Timothy Quinlan. The signatory for PCCP was William R. Lindsay.
Prior sales and revenue
The 232,174-square-foot property generated revenue of $10.5 million or $45 per square foot, according to the most recent income and expense figures.
The property
The office building in Fort Greene has 232,174 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 154 feet and is 82 feet deep with a total lot size of 21,185 square feet. The lot is irregular. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $40.3 million.
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 two DOB violations, $1,875 in ECB penalties, and $1,875 in OATH penalties in the last year.
Development
For the tax lot building, it received its initial certificate of occupancy on October 2, 2017. On the lot, there is one active major alteration construction project for a 205,743 square-foot B building. The project was submitted by Andrew Manton with plans filed July 24, 2015 and permitted January 11, 2016.
The neighborhood
In Fort Greene, The bulk, or 34 percent of the 12.4 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 23 percent of the space. In sales, Fort Greene has 1.6 times the average sales volume among other neighborhoods with $568.2 million in sales volume in the last two years and is the 12th highest in Brooklyn. For development, Fort Greene has 2.2 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Brooklyn. It had 2.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 18 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of two of the seven commercial properties representing 70,537 square feet of the 350,015 square feet. The two identified owners are Yitzchok Katz and Alfred Attara.
On the tax block, there were two new building construction projects totaling 342,478 square feet. The largest is a 123-unit, 199,736 square-foot residential (R-2) building submitted by David Companies and filed by Stephen Skolas with plans filed August 30, 2021 and permitted April 7, 2022. The second largest is a 183-unit, 142,742 square-foot residential (R-2) building submitted by Slate Property Group and filed by David Schwartz with plans filed October 16, 2014 and permitted January 8, 2016.
The majority, or 88 percent of the 350,015 square feet of built space are office buildings, with development buildings next occupying 8 percent of the space.
The borrower
The PincusCo database currently indicates that Quinlan Development Group owned at least four commercial properties with 120 residential units in New York City with 156,765 square feet and a city-determined market value of $47.9 million. (Market value is typically about 50% of actual value.) The portfolio has $134.2 million in debt, with top three lenders as First-Citizens Bank & Trust Company, CIT Bank, and Sterling National Bank respectively. Within the portfolio, the bulk, or 85 percent of the 156,765 square feet of built space are elevator properties, with industrial properties next occupying 11 percent of the space. They are all located in Brooklyn.
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