Sharp Management signs $32M refi loan with JPMorgan Chase for seven properties in Mott Haven

Sharp Management through the entity Brook- Sharp Realty LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $32 million for seven properties including the 78-unit residential walkup building (C7) at 235 Brook Avenue in Mott Haven, Bronx, 30-unit residential elevator building (D1) at 296 Brook Avenue in Mott Haven, Bronx, and 20-unit residential walkup building (C1) at 488 East 139th Street in Mott Haven, Bronx.
The deal closed on September 19, 2022 and was recorded on October 4, 2022. The prior lender was New York Community Bank which held debt that had an original loan amount of $24 million. The seven properties have 158,385 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $202 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 Sharp Management was Martin Kirzner. The signatory for JPMorgan Chase was Ursula Flores.

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 235 Brook Avenue.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Martin Kirzner, head officer and Martin Kirner, officer. The business entity is Brook-Sharp Realty Llc. The seven properties with a total of 158,385 square feet of built space generated revenue of $3.8 million per year or $24 per square foot.

The property

The 235 Brook Avenue parcel has frontage of 200 feet and is 94 feet deep with a total lot size of 16,178 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 $8.5 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 received three DOB violations, $4,375 in ECB penalties, 121 housing violations, $5,305 in OATH penalties, and two housing litigations 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 block

On the tax block of 235 Brook Avenue, PincusCo has identified the owners of four of the 16 commercial properties representing 103,880 square feet of the 318,399 square feet. The identified owner is Sharp Management.
there are no active new building construction projects on this tax block.

The majority, or 62 percent of the 318,399 square feet of built space are walkup buildings, with specialty buildings next occupying 20 percent of the space.

The borrower

The PincusCo database currently indicates that Sharp Management owned at least 62 commercial properties in New York City with 1,414,001 square feet and a city-determined market value of $100.3 million. (Market value is typically about 50% of actual value.) The portfolio has $50.5 million in debt, with top three lenders as New York Community Bank, Signature Bank, and LMF Commercial respectively. Within the portfolio, the bulk, or 68 percent of the 1,414,001 square feet of built space are walkup properties, with elevator properties next occupying 28 percent of the space. The bulk, or 59 percent of the built space, is in Bronx, with Brooklyn next at 22 percent of the space.

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