Renovation Group signs $7M construction loan for 9-unit development in Greenpoint

Renovation Group through the entity 47 Diamond Street LLC as borrower signed a new construction loan with lender Popular Bank valued at $7 million for three development properties including the development parcels (V0) at 47 , 49 and 51 Diamond Street in Greenpoint, Brooklyn.
The deal closed on July 15, 2022 and was recorded on August 10, 2022. The three properties have zero square feet of built space and 13,366 square feet of additional air rights for a total buildable of 13,366 square feet according to PincusCo analysis of city data. The loan price per buildable square foot is $523 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 Renovation Group was Daniel Kaykov.

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 47 Diamond Street.

The property

The 47 Diamond Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,583 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $348,000.

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 received $2,400 in ECB penalties and $2,650 in OATH penalties in the last year.

Development

On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 21,844 square feet. The largest is a new building project for a nine-unit, 17,344-square-foot R-2 building developed by Daniel Kaykov with plans filed October 5, 2021 and it has not been permitted yet. The second largest is a new building project for a five-unit, 4,500-square-foot R-2 building developed by Patrick Bethon with plans filed March 7, 2018 and it has not been permitted yet.

The neighborhood

In Greenpoint, the bulk, or 29 percent of the 23.4 million square feet of commercial built space are walkup buildings, with industrial buildings next occupying 27 percent of the space. In sales, Greenpoint has 1.9 times the average sales volume among other neighborhoods with $645.1 million in sales volume in the last two years and is the 6th highest in Brooklyn. For development, Greenpoint has 3.6 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Brooklyn. It had 3.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space.

The block

On the tax block of 47 Diamond Street, PincusCo has identified the owners of 35 of the 43 commercial properties representing 187,542 square feet of the 223,350 square feet. The largest owner is Franciszka Cielepak, followed by Geraldine K. Dworanczyk and then Boleslaw Kowalczyk.
There are three active new building construction projects totaling 26,787 square feet. The largest is a nine-unit, 17,344-square-foot R-2 building developed by Daniel Kaykov with plans filed October 5, 2021 and permitted April 26, 2022. The second largest is a seven-unit, 4,943-square-foot R-2 building developed by Hadas Hakmon with plans filed March 7, 2016 and permitted August 31, 2017.

The majority, or 80 percent of the 223,350 square feet of built space are walkup buildings, with mixed-use buildings next occupying 13 percent of the space.

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