RAGHSA signs $5.3M refi with Israel Discount Bank for residential elevator in Bushwick

RAGHSA Real Estate through the entity 387 Bleeker LLC as borrower signed a refi loan with lender Israel Discount Bank valued at $5.3 million for the midblock 19-unit residential elevator building at 387 Bleecker Street in Bushwick, Brooklyn.
The deal closed on February 15, 2022 and was recorded on May 9, 2022. The prior lender was Amerant Bank which held debt that had an original loan amount of $5.3 million. The property has 13,200 square feet of built space and 1,380 square feet of additional air rights for a total buildable of 14,580 square feet according to PincusCo analysis of city data. The loan price per built square foot is $405 and the price per buildable square foot is $366 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 June 12, 2014, for $2.3 million. The signatory for RAGHSA Real Estate was Isaac R. Khafif and Edgardo Khafif. The signatory for Israel Discount Bank was Avi Lieberman and Carlos Carvajal.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Jodi Ehrlich, head officer and Triduc Nguyen, site manager. The business entities are Mann Realty Associates and 387 Blecker Llc. The 13,200-square-foot property generated revenue of $543,194 or $41 per square foot, according to the most recent income and expense figures.

The property

The 387 Bleecker Street parcel has frontage of 60 feet and is 100 feet deep with a total lot size of 6,000 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The property has a 421A exemption that started in 2019.0 and expires in 2055.0. The city-designated market value for the property in 2022 is $1.7 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 one DOB violation and $100 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on February 13, 2019. On these lots, there is one active new building construction project for a 19-unit, 13,200-square-foot R-2 building. The project was developed by Adam Smith with plans filed October 22, 2014 and permitted August 24, 2017.

The neighborhood

In Bushwick, the bulk, or 32 percent of the 51.4 million square feet of commercial built space are 1-4 family buildings, with residential walkup buildings next occupying 29 percent of the space. In sales, Bushwick has 3.3 times the average sales volume among other neighborhoods with $910.2 million in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Bushwick has 1.2 times the average amount of major developments relative to other neighborhoods and is the 18th highest in Brooklyn. It had 1.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other residential elevator buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of five of the 15 commercial properties representing 32,220 square feet of the 80,392 square feet. The largest owner is Raghsa, followed by Duke Properties and then Abraham Grunhut. There is one active new building construction project totaling 13,200 square feet. It is a 19-unit, 13,200-square-foot R-2 building developed by Adam Smith with plans filed October 22, 2014 and permitted August 24, 2017.

The majority, or 47 percent of the 152,628 square feet of built space are 1-4 family buildings, with residential walkup buildings next occupying 29 percent of the space.

Surrounding

Within a 400-foot radius of 387 Bleecker Street, Pincusco identified two commercial real estate items of interests occurred over the past 24 months.
Of those two items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on September 27, 2021 for the $670,920 renovation of 4,365-square-foot R-2 building with six residential units at 383 Bleecker Street.
One of those two items was a loan which James P. Wiseman borrowed $9.7 million from Signature Bank secured by the 4,650-square-foot, six-unit rental (C2) on 369 Menahan Street and five other properties on March 8, 2021.

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