Slate Property, RiseBoro sign $121.7M construction loan for 215-unit project in Brownsville

Slate Property Group and RiseBoro Community Partnership through the entity 326 Rockaway Housing Development Fund Corporation as borrower signed a new construction loan with lender NYC Housing Development Corporation through the entity New York City Housing Development Corporation valued at $121.7 million for the development site at 326 Rockaway Avenue in Brownsville, Brooklyn.
On the lot, there is one active new building construction project for a 215-unit, 156,356 square-foot R-2 building. The project was submitted by Slate and RiseBoro with plans filed May 23, 2022 and it has not been permitted yet.

The deal closed on December 16, 2022 and was recorded on January 9, 2023.
The signatory for Slate Property Group and RiseBoro Community Partnership was David Schwartz. The signatory for NYC Housing Development Corporation was Lauren Connors.

The property

The most recent loan totaled $13.5 million and was provided by Supportive Housing Solutions Fund on June 2, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $2,000 in OATH penalties in the last year.

The neighborhood

In Brownsville, the bulk, or 46 percent of the 28.5 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Brownsville has had very little sales volume relative to other neighborhoods with $95 million in sales volume in the last two years. For development, Brownsville has had very little major development activity relative to other neighborhoods.It had 866,939 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 22 of the 39 commercial properties representing 27,422 square feet of the 102,013 square feet. The two identified owners are Slate Property Group and City of New York.
On the tax block, there was one new building construction project filed totaling 156,356 square feet. It is a 215-unit, 156,356-square-foot R-2 building developed by Emily Kurtz with plans filed May 23, 2022 and it has not been permitted yet.

The majority, or 50 percent of the 102,013 square feet of built space are mixed-use buildings, with office buildings next occupying 30 percent of the space.

The borrower

The PincusCo database currently indicates that RiseBoro Community Partnership owned at least 109 commercial properties in New York City with 1,993,153 square feet and a city-determined market value of $171.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 69 percent of the 1,993,153 square feet of built space are elevator properties, with walkup properties next occupying 26 percent of the space. The bulk, or 80 percent of the built space, is in Brooklyn, with Queens next at 17 percent of the space.
The PincusCo database currently indicates that Slate Property Group owned at least 52 commercial properties in New York City with 1,820,344 square feet and a city-determined market value of $445.1 million. (Market value is typically about 50% of actual value.) The portfolio has $1 billion in debt, with top three lenders as Mack Real Estate Group, Signature Bank, and Heitman LLC respectively. Within the portfolio, the bulk, or 70 percent of the 1,820,344 square feet of built space are elevator properties, with walkup properties next occupying 18 percent of the space. The bulk, or 59 percent of the built space, is in Manhattan, with Brooklyn next at 28 percent of the space.

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