Steven Feldman’s Rockfeld Group signs $6.5M refi for retail in Sheepshead Bay

Steven Feldman’s Rockfeld Group through the entity Tri-King Realty LLC as borrower signed a refi loan with lender Northfield Bank valued at $6.5 million for seven properties including the retail building (K2) at 1123 Kings Highway in Sheepshead Bay, Brooklyn, mixed-use building (K2) at 1103 Kings Highway in Sheepshead Bay, Brooklyn, and retail building (K2) at 1101 Kings Highway in Sheepshead Bay, Brooklyn.
The deal closed on May 3, 2023 and was recorded on May 22, 2023. The prior lender was Series 2013-C13 which held debt that had an original loan amount of $6.3 million.The seven properties have 22,942 square feet of built space and 23,143 square feet of additional air rights for a total buildable of 46,104 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $283 and the price per buildable square foot is $140 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 Rockfeld Group was Steven Feldman. The signatory for Northfield Bank was William G. Krejci.

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 1101 Kings Highway.

Prior sales and revenue

The seven properties with a total of 22,942 square feet of built space generated revenue of $1.5 million per year or $64 per square foot.

The property

The retail building in Sheepshead Bay has 22,942 square feet of built space and 23,143 square feet of additional air rights for a total buildable of 46,104 square feet according to a PincusCo analysis of city data. The parcel has frontage of 21 feet and is 89 feet deep with a total lot size of 1,732 square feet. The lot is irregular. The zoning is C4-4A which allows for up to 4 times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received one DOB violation and $150 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the seven buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Sheepshead Bay, The bulk, or 43 percent of the 26.5 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Sheepshead Bay has 1.5 times the average sales volume among other neighborhoods with $541 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, Sheepshead Bay has had very little major development activity relative to other neighborhoods.It had 741,094 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. There was one pre-foreclosure suit filed among other retail buildings in the past 12 months.

The block

On the tax block of 1101 Kings Highway, PincusCo has identified the owners of four of the 21 commercial properties representing 44,250 square feet of the 123,025 square feet. The largest owner is Verizon, followed by Odiljon Tursunov and then Hyman Azar.
On the tax block, there was one new building construction project filed totaling 19,081 square feet. It is a 19,081 square-foot business (B) building submitted by Fouad Barakat with plans filed February 28, 2020 and it has not been permitted yet.

The majority, or 49 percent of the 123,025 square feet of built space are retail buildings, with mixed-use buildings next occupying 36 percent of the space.

The borrower

The PincusCo database currently indicates that Rockfeld Group owned at least 13 commercial properties with 88,521 square feet, 7 residential units and a city-determined market value of $39 million. (Market value is typically about 50% of actual value.) The portfolio has $78.3 million in debt, with top three lenders as Goldman Sachs, Granite Point Mortgage Trust, and Northfield Bank respectively. Within the portfolio, the bulk, or 39 percent of the 88,521 square feet of built space are mixed-use properties, with retail properties next occupying 34 percent of the space. The bulk, or 60 percent of the built space, is in Manhattan, with Brooklyn next at 40 percent of the space.

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