ValueXpress has arranged a $5,000,000 commercial real estate loan through its relationship with a New York City-based community bank. The property is a 1-story, 12,300-square-foot retail property located at 118 Knickerbocker Avenue in the East Williamsburg neighborhood of Brooklyn, New York. The loan provided a $3-million return of equity to the borrower at closing.
The property is occupied by an affiliate of the borrower, the Urban Jungle Group, under the terms of a 15-year lease that commenced in 2020. The lease is NNN and has an initial contract rent of $40 per square foot.
The property is utilized as is by one of ten vintage clothing stores with ancillary warehouse space owned by the borrower. The company deals in the sale of previously used clothing, footwear and toys. These items are purchased by the pound, and items in good condition are resold in the owner’s vintage clothing stores in the N.Y. metro area, including the store at the subject property. The balance is exported, primarily to Guatemala.
The loan was originated by Gary Unkel, a senior loan originator at ValueXpress. The borrower, a long-time client of Unkel’s, has completed roughly 15 transactions over the past 10 years. Unkel commented, “Over time, the company has needed additional warehouse and retail space based on its rapidly expanding business, and we have supplied the financing in each instance.” For your next community bank financing, contact Gary at 212-883-6447.