Storage Post signs $13.3M refi for three properties in Cypress Hills

Storage Post through the entity Sp Hhf Sub Atlantic, LLC as borrower signed a refi loan with lender JPMorgan Chase through the entity Jpmorgan Chase Bank, N.A. valued at $13.3 million for three properties including the industrial building (E7) at 3329 Atlantic Avenue in Cypress Hills, Brooklyn, industrial building (E7) at 257R Euclid Avenue in Cypress Hills, Brooklyn, and development building (V0) at 279 Euclid Avenue in Cypress Hills, Brooklyn.
The deal closed on December 1, 2022 and was recorded on December 21, 2022. The prior lender was Series 2013-C8 which held debt that had an original loan amount of $9.6 million.The three properties have 123,414 square feet of built space and 63,266 square feet of additional air rights for a total buildable of 155,284 square feet according to PincusCo analysis of city data. The loan price per built square foot is $107 and the price per buildable square foot is $85 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 Post was William A. Palmer III. The signatory for JPMorgan Chase was Austin Lotito.

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 3329 Atlantic Avenue.

Prior sales and revenue

Out of the three properties, two with a total of 123,414 square feet of built space generated revenue of $2.3 million per year.

The property

The 3329 Atlantic Avenue parcel has frontage of 155 feet and is 141 feet deep with a total lot size of 19,686 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $11.6 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 not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the three 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 $5 million on this tax lot.

The neighborhood

In Cypress Hills, the bulk, or 24 percent of the 8.5 million square feet of commercial built space are mixed-use buildings, with specialty buildings next occupying 22 percent of the space. In sales, Cypress Hills has the 38th highest sale turnover among other neighborhoods in Brooklyn with $75.7 million in sales volume in the last two years. For development, Cypress Hills has near average amount of major developments among other neighborhoods and is the 18th highest in Brooklyn. It had 1 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space.

The block

On the tax block of 3329 Atlantic Avenue, PincusCo has identified the owners of four of the 13 commercial properties representing 126,014 square feet of the 157,177 square feet. The two identified owners are Storage Post and Elena Valle.
there are no active new building construction projects on this tax block.

The majority, or 80 percent of the 157,177 square feet of built space are industrial buildings, with mixed-use buildings next occupying 12 percent of the space.

The borrower

The PincusCo database currently indicates that Storage Post owned at least 15 commercial properties in New York City with 1,222,784 square feet and a city-determined market value of $146.2 million. (Market value is typically about 50% of actual value.) The portfolio has $149.6 million in debt, borrowed from JPMorgan Chase and Heitman Capital Management. Within the portfolio, the bulk, or 100 percent of the 1,222,784 square feet of built space are industrial properties, with specialty properties next occupying 0 percent of the space. The bulk, or 38 percent of the built space, is in Bronx, with Brooklyn next at 33 percent of the space.

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