Yehuda Kohn signs $10M construction loan in East New York

Yehuda Kohn through the entity 180 Pennsylvania LLC as borrower signed a new construction loan with lender Broadview Capital valued at $10 million for developments at parcels including 180, 184 and 186 Pennsylvania Avenue in East New York, Brooklyn.

On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 32,965 square feet. The largest is a new building project for a 34-unit, 22,973 square-foot R-2 building submitted by Yehuda Kohn and filed by Yehuda Kohn with plans filed June 13, 2022 and permitted January 25, 2024. The second largest is a new building project for a eight-unit, 9,991 square-foot R-2 building submitted by Yehuda Kohn and filed by Yehuda Kohn with plans filed January 12, 2023 and it has not been permitted yet.

The deal closed on May 9, 2024 and was recorded on May 17, 2024. The three properties have 7,204 square feet of built space and 22,790 square feet of additional air rights for a total buildable of 29,988 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $1,387 and the price per buildable square foot is $333 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 Yehuda Kohn was Yehuda Kohn.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 186 Pennsylvania Avenue.

Prior sales and revenue

Out of the three properties, two with a total of 7,204 square feet of built space generated revenue of $147,795 per year.

The property

The mixed-use building in East New York has 7,204 square feet of built space and 22,790 square feet of additional air rights for a total buildable of 29,988 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,499 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 $611,000.

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.

The neighborhood

In East New York, The bulk, or 40 percent of the 44.5 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 21 percent of the space. In sales, East New York has 1.4 times the average sales volume among other neighborhoods with $382 million in sales volume in the last two years and is the 20th highest in Brooklyn. For development, East New York is the 10th most active neighborhood among other neighborhoods. It had 5 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On the tax block of 186 Pennsylvania Avenue, PincusCo has identified the owners of four of the 18 commercial properties representing 39,164 square feet of the 69,916 square feet. The two identified owners are Milton Chacon and Mhany Management.
On the tax block, there were three new building construction projects totaling 35,765 square feet. The largest is a 34-unit, 22,973 square-foot residential (R-2) building submitted by Yehuda Kohn and filed by Yehuda Kohn with plans filed June 13, 2022 and permitted January 25, 2024. The second largest is a eight-unit, 9,991 square-foot residential (R-2) building submitted by Yehuda Kohn and filed by Yehuda Kohn with plans filed January 12, 2023 and it has not been permitted yet.

The majority, or 56 percent of the 69,916 square feet of built space are walkup buildings, with hotel buildings next occupying 19 percent of the space.

The borrower

The PincusCo database currently indicates that Yehuda Kohn owned at least 12 commercial properties with 62 residential units in New York City with 53,695 square feet and a city-determined market value of $14.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 77 percent of the 53,695 square feet of built space are walkup properties, with mixed-use properties next occupying 11 percent of the space. They are all located in Brooklyn.

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