Rogosin Institute signs $34.5M refi loan with NewYork-Presbyterian as lender for three properties in NYC

The Rogosin Institute as borrower signed a refi loan with NewYork-Presbyterian Hospital as lender valued at $34.5 million for three properties including the specialty building (I5) at 1845 McDonald Avenue in Gravesend, Brooklyn, office building (O7) at 2372 Linden Boulevard in East New York, Brooklyn, and specialty building (I5) at 66-20 Queens Boulevard in Maspeth, Queens.
The deal closed on December 1, 2022 and was recorded on December 23, 2022.

The prior lender was M&T Bank which held debt that had an original loan amount of $2.1 million. The three properties have 45,300 square feet of built space and 81,175 square feet of additional air rights for a total buildable of 126,576 square feet according to PincusCo analysis of city data. The loan price per built square foot is $761 and the price per buildable square foot is $272 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 Rogosin Institute was David Wyman. The signatory for NewYork-Presbyterian Hospital was Michael P. Breslin. According to the Rogosin website, “The Rogosin Institute is an independent, not-for-profit treatment and research center with facilities throughout New York City that treat patients with kidney disease, including dialysis and kidney transplantation; lipid disorders; and hypertension.”

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 1845 McDonald Avenue.

Prior sales and revenue

Out of the three properties, one with a total of 45,300 square feet of built space generated revenue of $585,750 per year.

The property

The 1845 McDonald Avenue parcel has frontage of 202 feet and is 106 feet deep with a total lot size of 21,661 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 $4.7 million.

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

For the tax lot buildings, one out of the three buildings received a initial certificate of occupancy in the last ten years. 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 Gravesend, the bulk, or 39 percent of the 18.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Gravesend has near average sales volume among other neighborhoods with $333.5 million in sales volume in the last two years and is the 21st highest in Brooklyn. For development, Gravesend has 1.2 times the average amount of major developments relative to other neighborhoods and is the 13th highest in Brooklyn. It had 1.3 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 the tax block of 1845 McDonald Avenue, PincusCo has identified the owners of two of the 10 commercial properties representing 23,096 square feet of the 44,866 square feet. The two identified owners are Jem Realty Management and Daniel Sugrue.
On the tax block, there was one new building construction project filed totaling 51,184 square feet. It is a 40-unit, 51,184-square-foot R-2 building developed by Abe Betesh with plans filed February 20, 2020 and permitted October 24, 2022.

The majority, or 39 percent of the 44,866 square feet of built space are retail buildings, with specialty buildings next occupying 38 percent of the space.

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