Turnbridge Equities signs $9.3M acquisition loan for $13M purchase in Gravesend

Turnbridge Equities through the entity 2647 Stillwell Avenue Property LLC as borrower signed an acquisition loan with lender East West Bank through the entity East West Bank valued at $9.3 million for six specialty properties including the specialty building (Z9) at 2320 Shore Parkway and 2647 Stillwell Avenue in Gravesend, Brooklyn.
The deal closed on May 11, 2023 and was recorded on May 24, 2023. The six properties have 5,000 square feet of built space and 160,760 square feet of additional air rights for a total buildable of 165,782 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $1,858 and the price per buildable square foot is $56 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 Turnbridge Equities was Ryan Nelson and Jessica Wald. The signatory for East West Bank was Nick Nawaz.
Turnbridge acquired the properties for $13 million on May 11, the same day as the financing.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations 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 Gravesend, The bulk, or 40 percent of the 19.1 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Gravesend has near average sales volume among other neighborhoods with $381.2 million in sales volume in the last two years and is the 20th highest in Brooklyn. For development, Gravesend has had very little major development activity relative to other neighborhoods.It had 639,461 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On the tax block of 2647 Stillwell Avenue, PincusCo has identified the owners of 14 of the 53 commercial properties representing 214,988 square feet of the 327,127 square feet. The largest owner is Turnbridge Equities, followed by Cubesmart and then Consolidated Edison.
On the tax block, there were three new building construction projects totaling 72,113 square feet. The largest is a 68,910 square-foot business (B) building submitted by Jim Eagleton with plans filed May 23, 2017 and permitted January 21, 2020. The second largest is a 2,016 square-foot business (B) building submitted by Monachan Mathai with plans filed April 21, 2021 and it has not been permitted yet.

The majority, or 89 percent of the 327,127 square feet of built space are industrial buildings, with office buildings next occupying 7 percent of the space.

The borrower

The PincusCo database currently indicates that Turnbridge Equities owned at least 13 commercial properties in New York City with 247,958 square feet and a city-determined market value of $25.3 million. (Market value is typically about 50% of actual value.) The portfolio has $454.3 million in debt, with top three lenders as KKR & Co., Starwood Capital Group, and Aresif Lender Llc respectively. Within the portfolio, the bulk, or 98 percent of the 247,958 square feet of built space are industrial properties, with specialty properties next occupying 2 percent of the space. The bulk, or 51 percent of the built space, is in Queens, with Brooklyn next at 38 percent of the space.

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