Transition Acquisitions borrows $50M based on NYC Hospitals long-term lease on Bushwick building

815 Broadway in Bushwick (Credit: Google)

Transition Acquisitions through the entity 815 Broadway Equities LLC as borrower signed a loan agreement with lender CTL Pass-Through Trust, Series 2019, through the trustee, Wells Fargo Trust Company valued at $49.9 million for 2 parcels, including the tax class office building with commercial with one to six stories (O5) at 815 Broadway and the adjacent vacant lot at 317 Ellery Street in Bushwick. The deal closed on September 27, 2019 and was recorded on October 4, 2019.
The property contains a total of about 52,000 square feet of built space.
The financing is supplied by buyers of bonds of a “credit tenant lease” secured by the lease the New York City Health and Hospitals Corporation signed with the landlord. The lease runs for 31 years and eight month, with 20 months of that a period of free rent. The initial rent comes to $2.35 million per year or about $44 per square foot. The financing includes a $14.85 million gap mortgage which was added to the existing $35 million in debt assigned by Bank Leumi. Wells Fargo is acting as trustee. The last time the property sold was July 6, 2015, when Transition Acquisitions bought it for $15,100,000.
The DOB issued a major alteration (A1) initial temporary certificate of occupancy for the building on August 30, 2018.
Over the past five years, there have been 2 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. Of those there was one major renovation application including a certificate of occupancy change (A1) filed with a total estimated value of $1,041,825. There was one renovation/alteration project (A2) applied for with a total estimated value of $35,000.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link
A recent story on the property. link.

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