Storage Deluxe signs $19M loan with PNC Bank for industrial in Gowanus

Storage Deluxe through the entity 313 Butler Storage LLC as borrower signed a loan with lender PNC Bank valued at $19 million for the industrial building (E7) at 313 Butler Street in Gowanus, Brooklyn.
The deal closed on February 13, 2023 and was recorded on February 21, 2023. The property has 73,756 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $257 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 Storage Deluxe was Steven A. Novenstein.

The property

The 313 Butler Street parcel has frontage of 240 feet and is 100 feet deep with a total lot size of 24,000 square feet. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $8.7 million.

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 not received any significant violations in the last year.

Development

On the lot, there is one active new building construction project for a 47,988 square-foot S-1 building. The project was developed by Storage Deluxe with plans filed May 31, 2018 and permitted January 9, 2020.

The neighborhood

In Gowanus, the bulk, or 47 percent of the 9.3 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 18 percent of the space. In sales, Gowanus has near average sales volume among other neighborhoods with $399.2 million in sales volume in the last two years and is the 17th highest in Brooklyn. For development, Gowanus is the 5th most active neighborhood among other neighborhoods. It had 4.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 50 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 11 of the 15 commercial properties representing 143,218 square feet of the 229,449 square feet. The largest owner is Watermark Capital Group, followed by Related Companies and then Miriam Chan.
On the tax block, there were three new building construction projects totaling 245,540 square feet. The largest is a 176-unit, 128,744-square-foot R-1 building developed by Miriam Chan with plans filed November 20, 2014 and it has not been permitted yet.The second largest is a N/A-unit, 47,988-square-foot S-1 building developed by Chris Lynch with plans filed May 31, 2018 and permitted February 13, 2019.

the majority, or 59 percent of the 229,449 square feet of built space are industrial buildings, with elevator buildings next occupying 27 percent of the space.

The borrower

The PincusCo database currently indicates that Storage Deluxe owned at least three commercial properties in New York City with 61,550 square feet and a city-determined market value of $7.5 million. (Market value is typically about 50% of actual value.) The portfolio has $22.5 million in debt, borrowed from Truist Bank. Within the portfolio, the bulk, or 87 percent of the 61,550 square feet of built space are P6 properties, with industrial properties next occupying 13 percent of the space. They are all located in Queens.

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