RedHoek+Partners signs $12M construction loan with S3 Capital for development in Red Hook
RedHoek+Partners through the entity DDG 379 Vb LLC as borrower signed a new construction loan with lender S3 Capital through the entity S3 RE Funding III LLC valued at $12 million for the development building (V1) at 379 Van Brunt Street in Red Hook, Brooklyn.
On the lot, there is one active new building construction project for a 11-unit, 15,599 square-foot R-2 building. The project was submitted by Jack Tawil of RedHoek+Partners with plans filed May 1, 2022.
The deal closed on December 8, 2023 and was recorded on December 18, 2023. The prior lender was S3 Capital which held debt that had an original loan amount of $2.6 million.
The property has zero square feet of built space and 15,625 square feet of additional air rights for a total buildable of 15,625 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $768 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 November 4, 2021, for $5.2 million. The signatory for RedHoek+Partners was Lee Cohen. The signatory for S3 Capital was Joshua Crane.
The property
The parcel has frontage of 60 feet and is 159 feet deep with a total lot size of 12,500 square feet. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $355,000.
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.
The neighborhood
In Red Hook, The bulk, or 49 percent of the 9.4 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 30 percent of the space. In sales, Red Hook has 1.6 times the average sales volume among other neighborhoods with $565.1 million in sales volume in the last two years and is the 12th highest in Brooklyn. For development, Red Hook has had very little major development activity relative to other neighborhoods.It had 512,430 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of four of the 14 commercial properties representing 4,413 square feet of the 28,710 square feet. The largest owner is Sokol Selmani, followed by Salvatore Ingravallo and then Redhoek+Partners.
On the tax block, there were five new building construction projects totaling 35,416 square feet. The largest is a 11-unit, 15,599 square-foot residential (R-2) building submitted by Jack Tawil with plans filed May 1, 2022. The second largest is a three-unit, 6,221 square-foot residential (R-2) building submitted by Aldo Frustaci with plans filed February 17, 2016 and permitted May 31, 2017.
The majority, or 52 percent of the 28,710 square feet of built space are mixed-use buildings, with walkup buildings next occupying 40 percent of the space.
The borrower
The PincusCo database currently indicates that Redhoek+Partners owned at least 14 commercial properties with 24 residential units in New York City with 29,978 square feet and a city-determined market value of $8.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 46 percent of the 29,978 square feet of built space are mixed-use properties, with D7 properties next occupying 38 percent of the space. They are all located in Brooklyn.
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