Red Apple signs $38.1M refi in Prospect Heights, made $5.1M principal payment

Red Apple Group through the entity Red Apple 670 Pacific Street LLC as borrower signed a refi loan with lender M&T Bank through the entity Manufacturers and Traders Trust Company valued at $38.1 million for the 86-unit residential elevator building (D1) at 670 Pacific Street in Prospect Heights, Brooklyn.
The deal closed on May 21, 2025 and was recorded on May 30, 2025. The prior lender was M&T Bank which held debt that had an original loan amount of $49.5 million.

The property has 83,828 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $454 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 February 1, 2018, for $69.2 million. The signatory for Red Apple Group was John Catsimatidis . The signatory for M&T Bank was Rachel Carter . Red Apple was required to make a principal payment of $5.1 million, and a note modification fee of $190,435. The new loan, at $38.1 million has to be no more than 80% loan to value based on a new appraisal. The maturity date extended from May 30, 2025, to September 1, 2027.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development include John Catsimatidis, head officer and Charles D’Amico, officer. The business entity is Red Apple 670 Pacific Street LLC. The 83,828-square-foot property generated revenue of $4 million or $48 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 86 residential units in Prospect Heights has 83,828 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 140 feet and is 110 feet deep with a total lot size of 15,389 square feet. The lot is irregular. The zoning is C4-4A which allows for up to 4 times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The property has a 421A exemption that started in 2018 and expires in 2033. The city-designated market value for the property in 2022 is $19.5 million. The property has 86 rent regulated units according to city tax records from 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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 8, 2016. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of five of the 10 commercial properties representing 476,469 square feet of the 505,965 square feet. The largest owner is Brodsky Organization, followed by Red Apple Group and then Joseph Banda.
On the tax block, there was one new building construction project filed totaling 370,789 square feet. It is a 316-unit, 370,789 square-foot residential (R-2) building submitted by Brodsky Organization and filed by Jon Adamski with plans filed September 18, 2015 and permitted December 2, 2015.

The majority, or 90 percent of the 505,965 square feet of built space are elevator buildings, with walkup buildings next occupying 9 percent of the space.

The borrower

The PincusCo database currently indicates that Red Apple Group owned at least nine commercial properties with 86 residential units in New York City with 180,845 square feet and a city-determined market value of $46.6 million. (Market value is typically about 50% of actual value.) The portfolio has $365.3 million in debt, with top three lenders as Bank of America, M&T Bank, and JPMorgan Chase respectively. Within the portfolio, the bulk, or 46 percent of the 180,845 square feet of built space are elevator properties, with N2 properties next occupying 33 percent of the space. The bulk, or 54 percent of the built space, is in Manhattan, with Brooklyn next at 46 percent of the space.

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