Solomon Schwimmer signs $17M refi for 38-unit rental in Bedford Stuyvesant

Solomon Schwimmer through the entity Madison Heights NY LLC as borrower signed a refi loan with lender Bank of Princeton valued at $17 million for the 38-unit residential elevator building (D6) at 650 Madison Street in Bedford Stuyvesant, Brooklyn.
The deal closed on March 28, 2024 and was recorded on April 11, 2024. The prior lender was S3 Capital which held debt that had an original loan amount of $13.8 million. The property has 33,121 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $513 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 owner bought the property on October 9, 2015, for $2.2 million. The signatory for Solomon Schwimmer was Solomon Schwimmer. The signatory for Bank of Princeton was Peggy Lane.

The property

The residential elevator building with 38 residential units in Bedford Stuyvesant has 33,121 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 130 feet and is 100 feet deep with a total lot size of 13,033 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $961,000. The most recent loan totaled $13.8 million and was provided by S3 Capital on January 12, 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 received $5,030 in ECB penalties and $5,250 in OATH penalties in the last year.

Development

On the lot, there are four active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 41,501 square feet. The largest is a new building project for a 38-unit, 26,010 square-foot R-2 building submitted by Solomon Schwimmer with plans filed April 8, 2022 and permitted April 17, 2023. The second largest is a new building project for a seven-unit, 5,181 square-foot R-2 building submitted by Boaz Gilad with plans filed February 16, 2017 and permitted May 4, 2018.

The block

On this tax block, PincusCo has identified the owners of eight of the 13 commercial properties representing 66,415 square feet of the 103,084 square feet. The largest owner is Workforce Housing Group, followed by Solomon Schwimmer and then Pincus S. Schwimmer.
On the tax block, there were seven new building construction projects totaling 77,849 square feet. The largest is a 38-unit, 26,024 square-foot residential (R-2) building submitted by Brookland Capital and filed by Boaz Gilad with plans filed November 16, 2015 and it has not been permitted yet. The second largest is a 38-unit, 26,010 square-foot residential (R-2) building submitted by Solomon Schwimmer with plans filed April 8, 2022 and permitted April 17, 2023.

The majority, or 83 percent of the 103,084 square feet of built space are walkup buildings, with elevator buildings next occupying 11 percent of the space.

The borrower

The PincusCo database currently indicates that Solomon Schwimmer owned at least 34 commercial properties with 418 residential units in New York City with 382,528 square feet and a city-determined market value of $70.5 million. (Market value is typically about 50% of actual value.) The portfolio has $290 million in debt, with top three lenders as Valley National Bank, Ponce Bank, and BridgeCity Capital respectively. Within the portfolio, the bulk, or 45 percent of the 382,528 square feet of built space are walkup properties, with elevator properties next occupying 44 percent of the space. The bulk, or 95 percent of the built space, is in Brooklyn, with Bronx next at 5 percent of the space.

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