Sam Rubin signs $51M construction loan for 131-unit project in Mt Eden
Sam Rubin through the entity 1351 Jerome Holdings LLC as borrower signed a new construction loan with lender Popular Bank through the entity Popular Bank valued at $51 million for the industrial building (G7) at 1351 Jerome Avenue in Mt Eden, Bronx.
On the lot, there is one active new building construction project for a 131-unit, 89,176 square-foot R-2 building. The project was submitted by Riegler Group and filed by Joseph Riegler with plans filed May 4, 2022 and permitted April 19, 2024.
The deal closed on April 16, 2024 and was recorded on May 2, 2024. The prior lender was Skybrook Capital which held debt that had an original loan amount of $6 million.
The owner bought the property on March 1, 2023, for $20.5 million. The signatory for Sam Rubin was Sam Rubin. The signatory for Popular Bank was Gary Hoffson.
The property
The parcel has frontage of 126 feet and is 124 feet deep with a total lot size of 18,185 square feet. The lot is irregular. The zoning is R8A which allows for up to 6.02 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 Skybrook Capital on March 24, 2023.
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 Mt Eden, The majority, or 51 percent of the 10.3 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 27 percent of the space. In sales, Mt Eden has had very little sales volume relative to other neighborhoods with $90.2 million in sales volume in the last two years. For development, Mt Eden has had very little major development activity relative to other neighborhoods.It had 783,836 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
On this tax block, PincusCo has identified the owners of five of the eight commercial properties representing 296,940 square feet of the 357,940 square feet. The largest owner is Sam Rubin, followed by Joseph Riegler and then Federico Jose Almonte.
On the tax block, there were two new building construction projects totaling 229,148 square feet. The largest is a 113-unit, 139,972 square-foot residential (R-2) building submitted by Concern for Independent Living and filed by Ralph Fasano with plans filed August 11, 2023 and it has not been permitted yet. The second largest is a 131-unit, 89,176 square-foot residential (R-2) building submitted by Riegler Group and filed by Joseph Riegler with plans filed May 4, 2022 and permitted April 19, 2024.
The majority, or 56 percent of the 357,940 square feet of built space are elevator buildings, with industrial buildings next occupying 27 percent of the space.
The borrower
The PincusCo database currently indicates that Sam Rubin owned at least nine commercial properties with 119 residential units in New York City with 118,913 square feet and a city-determined market value of $19 million. (Market value is typically about 50% of actual value.) The portfolio has $49.7 million in debt, with top three lenders as Popular Bank, First Republic Bank, and Bethpage Federal Credit Union respectively. Within the portfolio, the bulk, or 49 percent of the 118,913 square feet of built space are elevator properties, with walkup properties next occupying 39 percent of the space. They are all located in Brooklyn.
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