Urban View Development signs $16.9M rehab construction loan for up to 32 units in Clinton Hill

Urban View Development Group through the entity 87 Irving Realty LLC as borrower signed a rehab construction loan with lender Popular Bank through the entity Popular Bank valued at $16.9 million for the specialty building (W9) at 81-87 Irving Place in Clinton Hill, Brooklyn.
Urban View Development Group submitted a major alteration application for a conversion of the building at 87 Irving Place in Clinton Hill, Brooklyn. The plan was filed with the New York City Department of Buildings on April 15, 2022 under job number B00712293. It call for the increase in size of the building from a four-story building with no dwelling units to a four-story building with 30 dwelling units. The project is described in the filing as: proposed 7-story residential 32 units.
The deal closed on June 13, 2023 and was recorded on June 28, 2023. The prior lender was Terra Solid Capital which held debt that had an original loan amount of $6.5 million.The property has 26,500 square feet of built space and 5,520 square feet of additional air rights for a total buildable of 32,000 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $639 and the price per buildable square foot is $529 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 February 18, 2022, for $8.2 million. The signatory for Urban View Development Group was Nadav Hamo. The signatory for Popular Bank was Sana S. Khaliq.

The property

The parcel has frontage of 80 feet and is 100 feet deep with a total lot size of 8,000 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.5 million. The most recent loan totaled $6.5 million and was provided by Terra Solid Capital Ltd on February 18, 2022.

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 $6,250 in ECB penalties and $7,030 in OATH penalties in the last year.

The neighborhood

In Clinton Hill, The bulk, or 34 percent of the 10.8 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Clinton Hill has near average sales volume among other neighborhoods with $344.2 million in sales volume in the last two years and is the 22nd highest in Brooklyn. For development, Clinton Hill has had very little major development activity relative to other neighborhoods.It had 504,828 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the six commercial properties representing 53,732 square feet of the 69,019 square feet. The largest owner is Yehuda Cohen, followed by Urban View Development Group and then G-Way Management.
There are no other active new building construction projects on this tax block.

The majority, or 38 percent of the 69,019 square feet of built space are specialty buildings, with elevator buildings next occupying 31 percent of the space.

The borrower

The PincusCo database currently indicates that Urban View Development Group owned at least 12 commercial properties with 85 residential units in New York City with 90,722 square feet and a city-determined market value of $20.4 million. (Market value is typically about 50% of actual value.) The portfolio has $92.5 million in debt, with top three lenders as Terra Solid Capital, Bethpage Federal Credit Union, and Terra Capital Partners respectively. Within the portfolio, the bulk, or 37 percent of the 90,722 square feet of built space are elevator properties, with specialty properties next occupying 29 percent of the space. The bulk, or 74 percent of the built space, is in Brooklyn, with Manhattan next at 26 percent of the space.

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