New resi projects nab biggest outer-borough loans
Ground-up construction, refinancing proved credit worthy to lenders
The biggest outer-borough loan list in June was a shadow of its former self — mirroring Manhattan — with the 10 largest totaling just $342 million.
The outer boroughs brought in $1.16 billion in real estate loans in May and $1.42 billion last June. Nonetheless, the big loans that did close last month say something about lenders’ confidence in residential construction, as rents in the city have risen to record levels.
Brooklyn captured eight of the loans while the Bronx claimed the other two. Here are more details.
Bankruptcy boon | $63 million
Joel Wertzberger and Konstantin Gubareff’s limited liability company Upton Metropolitan secured $62.7 million from Metropolitan Corner Bushwick Lender LLC to buy, and build at, 824, 832 and 834 Metropolitan Avenue in East Williamsburg. Plans for a 147,000-square-foot residential building with 136 units were recently filed with the Department of Buildings.
Upton Metropolitan bought 834 Metropolitan Avenue out of Chaskiel Strulovitch’s Chapter 11 bankruptcy for $1.6 million, records show, and the two neighboring properties, 824 and 832, from Michael Kubersky for an undisclosed amount. Wertzberger is affiliated with lenders Bridge City Funding and Hamilton Eastman.
Wythe not? | $55 million
Schlomo Karpen received $55 million from G4 Capital to refinance prior debt and build a 100,000-square-foot, mixed-use building at 1 Wythe Avenue in Greenpoint. A new building permit was filed with the Department of Buildings on July 21 following the developer’s petition to rezone the property for commercial, industrial and retail uses. G4 replaces the State Bank of Texas as lender. Some $42 million was earmarked for new construction.
Gimme shelter | $53 million
Dan Shavolian’s Foremost Real Estate received $53.3 million from UMB Bank to buy and develop 1374 Blondell Avenue in Westchester Square, the Bronx. Foremost has filed to build a 38,000-square-foot building at the site as part of a plan to house 200 homeless adult men. Environmental remediation has pushed the completion date for the construction to 2024.
Cash-out refi | $48 million
Binyamin Beitel’s eponymous firm secured $48 million from Berkshire Residential Investments, including $12.7 million of newly originated funds, to refinance 100 Lenox Road, a new rental building in Flatbush. Berkshire replaces Bank Hapoalim as the project’s lender. The 90,000-square-foot building has 95 rental units, including 29 income-restricted. Construction finished earlier this year. A two-bedroom, one-bathroom apartment spanning 900 square feet is listed at $5,150.
Resi rising | $35 million
Gemini Rosemont Development received $34.8 million from East West Bank to build a 70,000-square-foot residential building with 59 units at 171 North 1st Street in Williamsburg. Fogarty Finger is the architect of record. Gemini bought the property in 2020 for $18.2 million.
Quick turnaround | $34 million
A residential portfolio in Brooklyn connected to Jeno Guttman received a $34.1 million refinance loan, including $1.3 million in new funds, from Los Angeles-based Hanmi Bank. The loan replaces debt held by Oritani Bank, which lent Guttman $33 million in 2019, the same year New Jersey’s Valley National Bank acquired Oritani. Seven buildings with 245 residential units make up the portfolio across Kensington, Homecrest, Sunset Park, Bath Beach, Midwood, Gravesend and Bensonhurst.
Something looming | $18.5 million
Loom Capital Group secured $18.5 million from Broadview Capital Partners to acquire 545 Broadway, a 52,600-square-foot warehouse in Williamsburg. Loom simultaneously bought the warehouse for $23 million. Former owner Blesso Properties had filed plans to build a 27-story, mixed-use building on the site, after buying the property in 2016 for $33 million, but the Department of Buildings rejected the application.
Better Ded than red | $13 million
Ded Gjonaj received $12.8 million from Peapack-Gladstone Bank, including $5 million in newly originated funds, at 275 East Gun Hill Road, an 87-unit rental building in Norwood, the Bronx. Gjonaj also secured $12.9 million from Peapack-Gladstone Bank to refinance a 121-unit rental building at 208 West 151st Street in Central Harlem. The loan included $4.5 million in new funds.
Miami calling | $12 million
Miami-based Lineaire Group secured $12.4 million from City National Bank of Florida to buy 144 North 10th Street, a 32-unit rental building in Williamsburg. The loan retires debt previously held by First Republic Bank and includes $6.4 million in newly originated funds. Lineaire paid $18.5 million for the building.
G’luck, Ahron | $10.7 million
A limited liability company connected to Joseph Rubin secured $10.7 million from Israeli-based lender Golden Bridge Funding to buy a development parcel at 478 St. John’s Place and 419 Lincoln Place in Crown Heights. Ahron Gluck filed a new building permit application in May to construct a 25,000-square-foot residential building with 34 units. The site was bought for $17 million.