Yidel Hirsch ups debt to $23.5M with Popular Bank for 40-unit rental in Williamsburg

Yidel Hirsch through the entity Montrose Park LLC as borrower signed a refi loan with lender Popular Bank through the entity Banco Popular North America valued at $23.5 million for the 40-unit residential elevator building at 73 Montrose Avenue in Williamsburg, Brooklyn.
The deal closed on March 30, 2022 and was recorded on April 15, 2022. The prior lender was Popular Bank which held debt that had an original loan amount of $20.7 million. The property has 33,294 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $705 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 20, 2012, for $4.1 million. The signatory for Yidel Hirsch was Yidel Hirsch. The signatory for Popular Bank was Joseph Farrauto. Yidel Hirsch is a manager of Unique Developers.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Yidel Hirsch, head officer and Joel Hirsch, site manager. The business entity is Montrose Park Llc. The 33,294-square-foot property generated revenue of $2 million or $59 per square foot, according to the most recent income and expense figures.

The property

The 73 Montrose Avenue parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The property has a 421A exemption that started in 2017 and expires in 2042. The city-designated market value for the property in 2022 is $6.4 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received one DOB violation and $50 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on June 15, 2015. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Williamsburg, the bulk, or 35 percent of the 65.1 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 19 percent of the space. In sales, Williamsburg has the 9th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Williamsburg is the 6th most active neighborhood among other neighborhoods. It had 5.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other residential elevator buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of six of the 16 commercial properties representing 132,774 square feet of the 194,040 square feet. The largest owner is Sterling Equities, followed by Yidel Hirsch and then Cheskel Schwimmer. There is one active new building construction project totaling 6,698 square feet. It is a five-unit, 6,698-square-foot R-2 building developed by Robert Bagdadi with plans filed January 26, 2015.

The majority, or 46 percent of the 197,415 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 23 percent of the space.

The borrower

The PincusCo database currently indicates that Yidel Hirsch owned at least two commercial properties with 47,545 square feet and a city-determined market value of $8.7 million. (Market value is typically about 50% of actual value.) The portfolio has $69.2 million in debt, borrowed from Popular Bank and Kearny Bank. Within the portfolio, the bulk, or 61 percent of the 47,545 square feet of built space are residential elevator properties, with industrial properties next occupying 39 percent of the space. They are all located in Brooklyn.

Surrounding

Within a 400-foot radius of 73 Montrose Avenue, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
One of those five items was a sale which St. Nicks Alliance bought the 4,125-square-foot, six-unit rental (C2) on 65 Montrose Avenue and 10 other properties for $5.3 million from National Equity Fund on January 6, 2021.
Of those five items, four were loans above $5 million totaling $27.6 million. The most recent of the four was Joel Weiss which borrowed $6.2 million from Ridgewood Savings Bank secured by the 12,258-square-foot, 16-unit rental (D7) on 51 Montrose Avenue on March 30, 2022.

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