United American Land signs $6M loan for retail in Gravesend, first debt on building

United American Land through the entity 2201 86th LLC as borrower signed an initial loan with lender TD Bank valued at $6 million for the retail building (K2) at 2201 86th Street in Gravesend, Brooklyn.
The deal closed on June 7, 2023 and was recorded on July 3, 2023. The property has 9,900 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $606 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 December 30, 2008, for $5 million. The signatory for United American Land was Albert Laboz. This is the first debt United American Land placed on the property since buying it in December 2008 for $5 million.

Prior sales and revenue

The 9,900-square-foot property generated revenue of $711,709 or $72 per square foot, according to the most recent income and expense figures.

The property

The retail building in Gravesend has 9,900 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 55 feet and is 100 feet deep with a total lot size of 5,500 square feet. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.8 million.

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 $1,100 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 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 1.2 times the average sales volume among other neighborhoods with $409.9 million in sales volume in the last two years and is the 18th highest in Brooklyn. For development, Gravesend has had very little major development activity relative to other neighborhoods.It had 648,969 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 this tax block, PincusCo has identified the owners of four of the 23 commercial properties representing 9,170 square feet of the 122,017 square feet. The largest owner is Silvestro Loverde, followed by Lee Lam and then Filippazzo Rose.
There are no active new building construction projects on this tax block.

The majority, or 49 percent of the 122,017 square feet of built space are mixed-use buildings, with retail buildings next occupying 28 percent of the space.

The borrower

The PincusCo database currently indicates that United American Land owned at least 51 commercial properties with 221 residential units in New York City with 981,378 square feet and a city-determined market value of $349.8 million. (Market value is typically about 50% of actual value.) The portfolio has $354.6 million in debt, with top three lenders as Signature Bank, Goldman Sachs, and Morgan Stanley respectively. Within the portfolio, the bulk, or 37 percent of the 981,378 square feet of built space are mixed-use properties, with elevator properties next occupying 23 percent of the space. The bulk, or 54 percent of the built space, is in Manhattan, with Brooklyn next at 29 percent of the space.

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