Yoel Zagelbaum entities borrow $104.4M against 7 properties in NYC

Yoel Zagelbaum as signatory for four separate entities borrowed a total of $104.4 million from Mizuho Bank which paid down a total of $89.4 million provided by Bear Creek Asset Management, in four separate transactions in Brooklyn, Manhattan and the Bronx.

In the largest, Yoel Zagelbaum through the entity Hanson Street Propco LLC as borrower signed a refi loan with lender Mizuho Bank through the entity Mizuho Capital Markets LLC valued at $38.9 million for three properties including the specialty building (N2) at 129-141 South Elliott Place in Fort Greene, Brooklyn, industrial building (G7) at 68 Hanson Place in Fort Greene, Brooklyn, and property at 62 Hanson Place in Fort Greene, Brooklyn.
The deal closed on February 24, 2023 and was recorded on March 1, 2023. The prior lender was Bear Creek Asset Management which held debt that had an original loan amount of $31.1 million.The three properties have 57,200 square feet of built space and 44,883 square feet of additional air rights for a total buildable of 102,000 square feet according to PincusCo analysis of city data. The loan price per built square foot is $679 and the price per buildable square foot is $380 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 Yoel Zagelbaum was Yoel Zagelbaum. The signatory for Mizuho Bank was Mirza Kafedzic.

In the second, Yoel Zagelbaum through the entity 161 Lexington Ave Propco LLC as borrower signed a refi loan with lender Mizuho Bank through the entity Mizuho Capital Markets LLC valued at $30.2 million for the 17-unit hotel building (H3) at 161 Lexington Avenue in Kips Bay, Manhattan.

In the third, Yoel Zagelbaum through the entity 399 3rd Avenue Propco LLC as borrower signed a refi loan with lender Mizuho Bank through the entity Mizuho Capital Markets LLC valued at $22.3 million for the hotel building (H3) at 399 3rd Avenue in Gowanus, Brooklyn.

In the fourth, Yoel Zagelbaum through the entity 480 East 185th Propco LLC as borrower signed a refi loan with lender Mizuho Bank through the entity 185th Street Lender LLC valued at $13 million for two properties including the 103-unit specialty building (I9) at 2342 Washington Avenue in Belmont, Bronx and 1-4 family building (A1) at 2329 Bassford Avenue in Belmont/Little Italy, Bronx.

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 129-141 South Elliott Place.

The property

The 129-141 South Elliott Place parcel has frontage of 60 feet and is 275 feet deep with a total lot size of 23,700 square feet. The lot is irregular. 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 $6 million. The most recent loan totaled $31.1 million and was provided by Bear Creek Asset Management on September 30, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received one DOB violation, $2,400 in ECB penalties, one housing violation, and $2,450 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the three buildings received a initial certificate of occupancy in the last ten years. 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 Fort Greene, the bulk, or 28 percent of the 11.5 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 25 percent of the space. In sales, Fort Greene has 1.7 times the average sales volume among other neighborhoods with $589 million in sales volume in the last two years and is the 9th highest in Brooklyn. For development, Fort Greene has 2.3 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Brooklyn. It had 2.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 20 percent of the neighborhood’s built space.

The block

On the tax block, there were two new building construction projects totaling 93,282 square feet. The largest is a 104-unit, 86,391-square-foot R-2 building developed by Michael Rooney with plans filed May 15, 2019 and permitted March 31, 2022. The second largest is a five-unit, 6,891-square-foot R-2 building developed by Maria Villafane with plans filed December 3, 2015 and it has not been permitted yet.

The majority, or 100 percent of the 30,400 square feet of built space are office buildings, with development buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Yoel Zagelbaum entities owned at least 11 commercial properties in New York City with 167,817 square feet and a city-determined market value of $29.9 million. (Market value is typically about 50% of actual value.) The portfolio has $140.2 million in debt, with top three lenders as Mizuho Bank, Bear Creek Asset Management, and BCTH Investors respectively. Within the portfolio, the bulk, or 32 percent of the 167,817 square feet of built space are specialty properties, with N2 properties next occupying 29 percent of the space. The bulk, or 38 percent of the built space, is in Manhattan, with Bronx next at 38 percent of the space.

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