RedHoek+Partners signs $27.5M construction loan with Urban Standard Capital in Gravesend

RedHoek+Partners through the entity Ddg 362 Ave U Owner LLC as borrower signed a new construction loan with lender Urban Standard Capital through the entity Usc 362 Avenue U LLC valued at $27.5 million for a development at 2102-2110 East 1st Street in Gravesend, Brooklyn.
On the lot, there is one active new building construction project for a 12-unit, 29,821 square-foot R-2 building. The project was submitted by RedHoek+Partners and filed by Jack Tawil with plans filed February 17, 2023 and it has not been permitted yet.
The deal closed on November 1, 2023 and was recorded on November 6, 2023. The prior lender was BridgeCity Capital which held debt that had an original loan amount of $6 million.
The property has 11,708 square feet of built space and 18,278 square feet of additional air rights for a total buildable of 29,964 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $917 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 September 29, 2022, for $7.5 million. The signatory for RedHoek+Partners was Lee Cohen. The signatory for Urban Standard Capital was Seth Weissman.

Prior sales and revenue

The 11,708-square-foot property generated revenue of $216,448 or $18 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building with 4 residential units in Gravesend has 11,708 square feet of built space and 18,278 square feet of additional air rights for a total buildable of 29,964 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 60 feet deep with a total lot size of 9,988 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.1 million. The most recent loan totaled $6 million and was provided by BridgeCity Capital on September 29, 2022.

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 $760 in OATH penalties in the last year.

The neighborhood

In Gravesend, The bulk, or 40 percent of the 19.1 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Gravesend has 1.2 times the average sales volume among other neighborhoods with $424.8 million in sales volume in the last two years and is the 19th highest in Brooklyn. For development, Gravesend has 1.4 times the average amount of major developments relative to other neighborhoods and is the 13th highest in Brooklyn. It had 1.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the three commercial properties representing 7,600 square feet of the 7,600 square feet. The identified owner is Redhoek+Partners.
On the tax block, there were two new building construction projects totaling 59,230 square feet. The largest is a 12-unit, 29,821 square-foot residential (R-2) building submitted by RedHoek+Partners and filed by Jack Tawil with plans filed February 17, 2023 and it has not been permitted yet. The second largest is a 12-unit, 29,409 square-foot residential (R-2) building submitted by RedHoek+Partners and filed by Jack Tawil with plans filed October 6, 2022 and permitted June 16, 2023.

The majority, or 100 percent of the 7,600 square feet of built space are mixed-use buildings, with industrial buildings next occupying 0 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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