Remsen Capital signs $70M refi loan with Metropolitan Commercial for specialty in Coney Island

Remsen Capital Management through the entity Shorefront Realty LLC as borrower signed a refi loan with lender Metropolitan Commercial Bank valued at $70 million for the specialty building at 2802 Surf Avenue in Coney Island, Brooklyn.
The deal closed on May 31, 2022 and was recorded on June 21, 2022. The prior lender was Greystone & Co. which held debt that had an original loan amount of $43.5 million.The property has 174,788 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $400 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 December 11, 2014, for $32 million. The signatory for Remsen Capital Management was Joel Zupnick. The signatory for Metropolitan Commercial Bank was Brett Bandazian and Zachary Relyea. Joel Zupnick is an investor with Remsen Capital Management.

The property

The 2802 Surf Avenue parcel has frontage of 237 feet and is 271 feet deep with a total lot size of 63,102 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $29.2 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 three DOB violations and $1,870 in OATH penalties 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 neighborhood

In Coney Island, the majority, or 70 percent of the 25.1 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 10 percent of the space. In sales, Coney Island has had very little sales volume relative to other neighborhoods with $64.9 million in sales volume in the last two years. For development, Coney Island has 2.2 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Brooklyn. It had 2 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

All properties are specialty.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 2802 Surf Avenue that occurred over the past 24 months.

Direct link to Acris document. link