Storage Post signs $54.3M refi loan with JPMorgan Chase for industrial in Clinton Hill

Storage Post through the entity Sp Hhf Sub Brooklyn LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $54.3 million for the industrial building (E7) at 32 Grand Avenue in Clinton Hill, Brooklyn.
The deal closed on December 1, 2022 and was recorded on December 12, 2022. The prior lender was Corporate Solutions Life Reinsurance Company which held debt that had an original loan amount of $52.5 million. The property has 280,000 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $193 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 June 11, 2015, for $9.4 million. The signatory for Storage Post was William A. Palmer III. The signatory for JPMorgan Chase was Austin Lotito.

Prior sales and revenue

The 280,000-square-foot property generated revenue of $5.3 million or $19 per square foot, according to the most recent income and expense figures.

The property

The 32 Grand Avenue parcel has frontage of 173 feet and is 202 feet deep with a total lot size of 34,946 square feet. The lot is irregular. 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 $24.3 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 received one DOB violation in the last year.

Development

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 Clinton Hill, the bulk, or 31 percent of the 10.3 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Clinton Hill has near average sales volume among other neighborhoods with $314.2 million in sales volume in the last two years and is the 23rd highest in Brooklyn. For development, Clinton Hill has had very little major development activity relative to other neighborhoods.It had 574,801 square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the six commercial properties representing 638,781 square feet of the 638,781 square feet. The largest owner is Storage Post, followed by Sela Group and then American Development Group.
On the tax block, there was one new building construction project filed totaling 17,394 square feet. It is a N/A-unit, 17,394-square-foot B building developed by Daniel Cobleigh with plans filed December 31, 2015 and permitted August 5, 2021.

The majority, or 100 percent of the 638,781 square feet of built space are industrial buildings, with development buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Storage Post owned at least 16 commercial properties in New York City with 1,348,339 square feet and a city-determined market value of $157.7 million. (Market value is typically about 50% of actual value.) The portfolio has $89 million in debt, borrowed from JPMorgan Chase and Heitman Capital Management. Within the portfolio, the bulk, or 91 percent of the 1,348,339 square feet of built space are industrial properties, with office properties next occupying 9 percent of the space. The bulk, or 34 percent of the built space, is in Bronx, with Brooklyn next at 30 percent of the space.

Direct link to Acris document. link