Treeline Companies signs $30M refi for office in Brooklyn Heights

Treeline Companies through the entity 175 Remsen Owner Tic 1 LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $30 million for the office building (O6) at 175 Remsen Street in Brooklyn Heights, Brooklyn.
The deal closed on September 10, 2024 and was recorded on October 1, 2024. The prior lender was Wells Fargo which held debt that had an original loan amount of $37.5 million.The property has 129,520 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $231 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 Treeline Companies was Michael Schor. The signatory for JPMorgan Chase was Jennifer Lewin.

The property

The office building in Brooklyn Heights has 129,520 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 106 feet and is 100 feet deep with a total lot size of 10,650 square feet. The zoning is C5-2A which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The property is in the Borough Hall Skyscraper Historic District. The city-designated market value for the property in 2022 is $25.2 million. The most recent loan totaled $37.5 million and was provided by Wells Fargo on October 29, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received six DOB violations, $11,125 in ECB penalties, and $11,175 in OATH penalties in the last year.

Development

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 Brooklyn Heights, The bulk, or 26 percent of the 12.1 million square feet of commercial built space are office buildings, with elevator buildings next occupying 23 percent of the space. In sales, Brooklyn Heights has 2.9 times the average sales volume among other neighborhoods with $721.6 million in sales volume in the last two years and is the 4th highest in Brooklyn. For development, Brooklyn Heights has near average amount of major developments among other neighborhoods and is the 16th highest in Brooklyn. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 12 commercial properties representing 631,272 square feet of the 1,262,899 square feet. The largest owner is Equity Residential, followed by Quinlan Development Group and then Treeline Companies.
On the tax block, there was one new building construction project filed totaling 110,000 square feet. It is a 121-unit, 110,000 square-foot residential (R-2) building submitted by Aurora Capital Associates and Midtown Equities and filed by Matthew Abreu with plans filed April 1, 2019 and permitted February 5, 2021.

The majority, or 60 percent of the 1.3 million square feet of built space are office buildings, with elevator buildings next occupying 36 percent of the space.

The borrower

The PincusCo database currently indicates that Treeline Companies owned at least two commercial properties with 25 residential units in New York City with 146,545 square feet and a city-determined market value of $31 million. (Market value is typically about 50% of actual value.) The portfolio has $135.2 million in debt, with top three lenders as Wells Fargo, Fortress Investment Group, and Signature Bank respectively. Within the portfolio, the bulk, or 88 percent of the 146,545 square feet of built space are office properties, with walkup properties next occupying 12 percent of the space. The bulk, or 88 percent of the built space, is in Brooklyn, with Manhattan next at 12 percent of the space.

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