Second Lots Development signs $13.2M refi loan with Walker & Dunlop for project in Harlem

Second Lots Development through the entity Fdb 13 LLC as borrower signed a refi loan with lender Walker & Dunlop through the entity Walker & Dunlop Commercial Property Funding, LLC, valued at $13.2 million for a new development at 2750 Fredrick Douglass Boulevard in Harlem, Manhattan.
The deal closed on February 23, 2023 and was recorded on March 13, 2023. The prior lender was Urban Standard Capital which held debt that had an original loan amount of $16.5 million.
The signatory for Second Lots Development was Josef L. Goodman. The signatory for Walker & Dunlop was John Garth.

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 $12,590 in ECB penalties in the last year.

Development

On these lots, there are four active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 52,815 square feet. The largest is a new building project for a 14-unit, 16,001 square-foot R-2 building developed by Rayan Pedram with plans filed August 2, 2017 and it has not been permitted yet. The second largest is a new building project for a 12-unit, 12,834 square-foot R-2 building developed by Rayan Pedram with plans filed June 1, 2017 and it has not been permitted yet.

The neighborhood

In Harlem, the bulk, or 44 percent of the 79.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 31 percent of the space. In sales, Harlem has 2.2 times the average sales volume among other neighborhoods with $759.7 million in sales volume in the last two years and is the 20th highest in Manhattan. For development, Harlem is the 8th most active neighborhood among other neighborhoods. It had 4.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On the tax block of 2750 Fredrick Douglass Boulevard, PincusCo has identified the owners of 12 of the 25 commercial properties representing 276,152 square feet of the 642,684 square feet. The largest owner is Sharp Management, followed by Second Lots Development and then Robert Rosenberg.
On the tax block, there were five new building construction projects totaling 62,135 square feet. The largest is a 14-unit, 16,001-square-foot R-2 building developed by Rayan Pedram with plans filed August 2, 2017 and it has not been permitted yet.The second largest is a 12-unit, 12,834-square-foot R-2 building developed by Rayan Pedram with plans filed June 1, 2017 and it has not been permitted yet.

The majority, or 52 percent of the 642,684 square feet of built space are walkup buildings, with elevator buildings next occupying 44 percent of the space.

The borrower

The PincusCo database currently indicates that Second Lots Development owned at least two commercial properties in New York City. (Market value is typically about 50% of actual value.) The portfolio has $11.8 million in debt, borrowed from Urban Standard Capital. Within the portfolio, all identified are elevator properties.

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