Red Apple Group ups debt by $23.2M for new 425-unit rental in Coney Island
1 Ocean Drive (Credit - Google)
Red Apple Group through the entity Red Apple Surf Realty III LLC as borrower signed a refi loan with lender Bank of America valued at $23.2 million for three properties including the rental condo at 1 Ocean Drive in Coney Island, Brooklyn.
The deal closed on July 20, 2022 and was recorded on July 26, 2022. The prior lender was Bank of America which held debt that had an original loan amount of $130 million. The three properties have 451,637 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $51 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 Red Apple Group was John Catsimatidis. This financing adds $23 million of new debt. The Real Deal reported the total financing was valued at $153 million, but the original 2018 construction loan of $130 million has not been re-recorded in Acris.
Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 1 Ocean Drive.
The property
The 1 Ocean Drive parcel has a total lot size of 409,919 square feet. The city-designated market value for the property in 2022 is $74.2 million.
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Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have not received any significant violations in the last year.
Development
There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.
The block
There is one active new building construction project totaling 348,464 square feet. It is a 425-unit, 348,464-square-foot R-2 building developed by John Catsimatidis with plans filed December 29, 2016 and permitted August 23, 2017.
The majority, or 0 percent of the 0.0 square feet of built space are development buildings, with rental condo buildings next occupying 0 percent of the space.
The borrower
The PincusCo database currently indicates that Red Apple Group owned at least nine commercial properties in New York City with 682,622 square feet and a city-determined market value of $177.9 million. (Market value is typically about 50% of actual value.) The portfolio has $225 million in debt, with top three lenders as Bank of America, M&T Bank, and HSBC Bank respectively. Within the portfolio, the bulk, or 91 percent of the 682,622 square feet of built space are rental condo properties, with retail properties next occupying 9 percent of the space. The bulk, or 95 percent of the built space, is in Brooklyn, with Manhattan next at 5 percent of the space.
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