Green Tab B001 - Block 2512 Equity Analysis¶
GUARDRAIL: GREEN — ENFORCEMENT & LIENS
Asset recovery, lien priority, and collection strategy. No underlying damages calculations, no liability analysis.
0. Purpose & Scope¶
This tab provides a facts-only equity analysis of Brooklyn Block 2512 (Lots 1 & 72), the primary real estate collateral securing judgments against American Package Company, Inc.
B001 Documents: - Ownership chain from government transfer to present - Complete mortgage stack with Grey Vol 11 loan ID alignment - Property valuation evidence from public records - Equity band calculations by time-slice - Current encumbrance position
B001 Does Not: - Recommend enforcement actions (Purple only) - Apply multipliers or ratios (Yellow/Pink only) - Compute damages (Blue/Red/Brown only) - Argue fraud exposure (Grey only)
POSTURE NOTE: Green Volume 09 presents asset and equity facts only. Settlement strategy, collection posture, and leverage deployment live in Purple Vol 08. Green provides the factual foundation for asset recovery without advocacy framing.
Cross-References: - Loan universe: Grey B001 (ACRIS Spine) - Collateral mapping: Grey C002 (Asset & Collateral Map) - Receivables: Green B002 (Secondary Assets) - Recovery bands: Green D001 (Capacity Calculation)
1. Property Identification¶
1.1 Primary Asset¶
| Field | Value |
|---|---|
| Property | Brooklyn Block 2512, Lots 1 & 72 |
| Primary Address | 230 Franklin Street, Brooklyn, NY 11222 (Lot 1) |
| Secondary Address | 117 Green Street, Brooklyn, NY (Lot 72) |
| Borough-Block-Lot | Brooklyn, Block 2512, Lots 1 & 72 |
| Property Type | Mixed-use industrial/loft complex with warehouse out-parcel |
| Current Owner | American Package Company, Inc. |
| Principal | Martin C. Kofman, President |
Collateral Definition: Unless otherwise specified, "Block 2512" in this document refers to: - Lot 1 (230 Franklin Street) - Mixed-use 112,105 sq ft building - Lot 72 (117 Green Street) - 2,214 sq ft 1-story warehouse
Both lots are encumbered together under mortgage L-2024-02 ($4,100,000, Customers Bank).
1.2 Lot 1 Property Characteristics (230 Franklin Street)¶
| Metric | Value | Source |
|---|---|---|
| BBL | 3-02512-0001 | NYC DOF |
| Total Building Area | 112,105 sq ft | NYC DOF Property Portal |
| Residential Area | 67,105 sq ft | NYC DOF Property Portal |
| Commercial Area | 45,000 sq ft | NYC DOF Property Portal |
| Land Area | 60,500 sq ft | NYC DOF Property Portal |
| Residential Units | 39 | NYC DOF Property Portal |
| Commercial Units | 3 | NYC DOF Property Portal |
| Total Units | 42 | NYC DOF Property Portal |
Property Description: - Industrial/warehouse building with residential loft occupancy - Contains G-line units including G21 (subject of base damages claim) - Long-running commercial operations at ground level - Mixed-use character creates dual revenue streams
1.3 Lot 72 Property Characteristics (117 Green Street)¶
| Metric | Value | Source |
|---|---|---|
| BBL | 3-02512-0072 | Public records |
| Address | 117 Green Street, Brooklyn, NY | Public records |
| Lot Area | 2,214 sq ft | Public records |
| Building Area | 2,214 sq ft | Public records |
| Building Type | 1-story warehouse | Public records |
| Owner | American Package Company, Inc. | Same as Lot 1 |
Property Description: - Small warehouse structure on separate lot within Block 2512 - Functionally tied to main 230 Franklin Street complex - Encumbered by same mortgage as Lot 1 (L-2024-02) - Value driven primarily by land in strong Greenpoint submarket
Mortgage Coverage: Lot 72 is encumbered by the same mortgage (L-2024-02, $4.1M) as Lot 1. The collateral package = Lots 1 + 72 together.
2. Ownership Chain¶
2.1 Title History¶
| Period | Status | Consideration | Source |
|---|---|---|---|
| 1982-1983 | NYC IDA development lease | $313,000 original mortgage | ACRIS |
| 1996 | Fee simple transfer: NYC IDA to APC | $1.00 | ACRIS deed |
| 1996-Present | Continuous fee simple ownership | - | No adverse claims |
2.2 Title Origin Details¶
1996 Government-to-Private Transfer: - Grantor: New York City Industrial Development Agency (NYC IDA) - Grantee: American Package Company, Inc. - Consideration: $1.00 (development incentive transfer) - Legal compliance: Lien Law Section 13 integrated - Result: Clear fee simple title established
Title Quality Assessment (facts only): - Government-source documentation provides high confidence in ownership - No competing claims identified in ACRIS search (1983-2024) - Chain of title is clean and marketable for lien purposes
3. Mortgage Stack (Grey Vol 11 Alignment)¶
3.1 Complete Loan Timeline¶
Green B001 uses the identical loan ID scheme established in Grey Vol 11:
| Loan ID | Date | Lender | Principal | CRFN | Type |
|---|---|---|---|---|---|
| L-2003-01 | Sept 11, 2003 | Flushing Savings Bank, FSB | $1,162,795.82 | 2004000173465 | Gap Mortgage |
| L-2007-01 | Oct 4, 2007 | Flushing Savings Bank, FSB | $2,250,000.00 | 2007000496556 | Mortgage |
| L-2012-01 | Dec 21, 2012 | Flushing Savings Bank, FSB | $2,250,000.00 | 2013000016879 | Mortgage |
| L-2016-01 | Apr 25, 2016 | Flushing Savings Bank, FSB | $3,000,000.00 | 2016000152440 | Mortgage |
| L-2019-01 | Oct 24, 2019 | Customers Bank | $3,250,000.00 | 2019000368858 | Mortgage |
| L-2022-01 | Oct 25, 2022 | Customers Bank | $3,750,000.00 | 2022000367696 | Mortgage |
| L-2022-02 | Dec 22, 2022 | Customers Bank | $3,750,000.00 | 2022000433287 | Mortgage |
| L-2024-01 | Feb 9, 2024 | Customers Bank | $4,350,000.00 | 2024000047379 | Mortgage |
| L-2024-02 | Sept 20, 2024 | Customers Bank | $4,100,000.00 | 2024000321266 | Mortgage |
Collateral Coverage: All listed mortgages secured by Block 2512, Lots 1 & 72 together.
3.2 Financing Evolution Summary¶
| Period | Lender | Activity |
|---|---|---|
| 2003-2016 | Flushing Savings Bank | Initial and successive mortgages |
| 2019-2024 | Customers Bank | Refinancing and modifications |
Note on Consolidation: Later loans may consolidate or refinance earlier positions. Current outstanding balance is likely the most recent loan (L-2024-02: $4,100,000) rather than cumulative total of all recorded instruments.
3.3 Current Senior Position¶
Most Recent Recorded Mortgage: - Loan ID: L-2024-02 - Date: September 20, 2024 - Lender: Customers Bank - Principal: $4,100,000.00 - CRFN: 2024000321266 - Collateral: Block 2512, Lots 1 & 72
Current Senior Lienholder (presumed): Customers Bank
Verification Required: Exact payoff status of prior loans requires updated title search. This analysis assumes standard refinancing practice where later loans satisfy earlier positions.
4. Property Valuation Evidence¶
4.1 CRITICAL VALUATION NOTE¶
This analysis presents two tiers of valuation evidence:
| Tier | Methodology | Result | Status |
|---|---|---|---|
| Tier A | ACRIS/LTV inference | $18M-$32M | Documented FLOOR |
| Tier B | Comparable sales analysis (Lots 1 + 72) | $44.5M-$57.1M | Estimated market value |
Why Two Tiers?
The original ACRIS-based methodology (Tier A) inferred property value from mortgage amounts using assumed LTV ratios (65-80%). This approach systematically understates value for conservatively-financed properties. A $4.1M mortgage on a building worth $50M represents only 8% LTV - the loan amount provides no meaningful signal about actual value.
Tier B uses verified square footage and recent comparable sales data to produce a more realistic market value estimate. As of v1.2, Tier B is split into two components (Lot 1 and Lot 72) to reflect the distinct property characteristics and appropriate valuation methodology for each.
Both tiers are presented. Tier A provides a documented minimum floor. Tier B provides context for likely actual value. Independent appraisal is required before litigation deployment.
4.2 Tier A: ACRIS-Derived Valuation (Documented Floor)¶
Methodology: - Observed mortgage amount: $4,100,000 (L-2024-02) - Assumed bank LTV: 65-80% - Inferred property value: $18M-$32M
Limitation: This methodology assumes banks lend at typical LTV ratios. If the property owner financed conservatively (low LTV), actual value could be significantly higher than this inference suggests.
| Metric | Low | Mid | High |
|---|---|---|---|
| Inferred Property Value | $18M | $25M | $32M |
| Less: Mortgage | ($4.1M) | ($4.1M) | ($4.1M) |
| Tier A Equity | $13.9M | $20.9M | $27.9M |
Status: Documented FLOOR - Actual value likely higher. Tier A implicitly covers the entire collateral package (both lots) since it is derived from mortgage amount, not square footage.
4.3 Tier B: Comparable Sales Valuation (Market Estimate)¶
Tier B is split into two components to reflect the distinct characteristics of each lot:
4.3.1 Tier B-1: Lot 1 (230 Franklin Street) - Mixed-Use Building¶
Methodology: - Verified building area: 112,105 sq ft (NYC DOF Property Portal) - Price/sq ft benchmarks from Brooklyn mixed-use/multifamily market (2022-2025)
Comparable Data Points:
| Benchmark | Price/SF | Source | Application |
|---|---|---|---|
| Brooklyn MF/MU 2024 avg | $391/sf | Market data | Low estimate |
| 233 Franklin Street sale | $411/sf | Recent Greenpoint comp | Mid estimate |
| Brooklyn mixed-use 2022 | $501/sf | Stronger-cycle benchmark | High estimate |
Tier B-1 Valuation Calculation:
| Scenario | Price/SF | Building SF | Lot 1 Value |
|---|---|---|---|
| Low | $391 | 112,105 | $43.83M |
| Mid | $411 | 112,105 | $46.08M |
| High | $501 | 112,105 | $56.18M |
4.3.2 Tier B-2: Lot 72 (117 Green Street) - Warehouse¶
Methodology: - Land area: 2,214 sq ft (public records) - Land-value approach: Small 1-story warehouse in Greenpoint valued primarily for land - Price/sq ft benchmarks from Greenpoint industrial land market
Valuation Rationale:
A 2,214 sq ft 1-story warehouse is valued primarily for its underlying land rather than the minimal structure. Greenpoint industrial land trades in the $300-$500/SF range. This analysis uses a conservative $300-$400/SF band.
Tier B-2 Valuation Calculation:
| Scenario | Price/SF (Land) | Land SF | Lot 72 Value |
|---|---|---|---|
| Low | $300 | 2,214 | $0.66M |
| Mid | $350 | 2,214 | $0.77M |
| High | $400 | 2,214 | $0.89M |
Note: Lot 72 represents approximately 1.5% of total Tier B value. Even a 30-40% estimation error in Lot 72 valuation would have minimal impact on total capacity bands.
4.3.3 Combined Tier B Summary¶
| Component | Low | Mid | High | % of Total |
|---|---|---|---|---|
| Lot 1 (230 Franklin) | $43.83M | $46.08M | $56.18M | ~98.5% |
| Lot 72 (117 Green) | $0.66M | $0.77M | $0.89M | ~1.5% |
| Total Tier B Property Value | $44.49M | $46.85M | $57.07M | 100% |
| Less: Mortgage | ($4.1M) | ($4.1M) | ($4.1M) | |
| Total Tier B Equity | $40.39M | $42.75M | $52.97M |
Status: Estimated market value - Requires independent appraisal for litigation use.
4.4 DOF Assessment Cross-Check¶
NYC DOF 2025/26 "Final Market Value": $11,613,000
At the low end of combined Tier B ($44.49M), DOF's assessed value represents only ~26% of estimated market value. This is consistent with fractional assessment practices in New York City, where assessed values routinely fall well below actual transaction prices.
Interpretation: The DOF assessment does not indicate actual market value. It confirms only that Tier B estimates are not unreasonably high - if anything, they may be conservative.
4.5 Valuation Summary¶
| Tier | Property Value | Equity | Status |
|---|---|---|---|
| Tier A (ACRIS Floor) | $18M - $32M | $13.9M - $27.9M | Documented minimum |
| Tier B (Comp-Based) | $44.49M - $57.07M | $40.39M - $52.97M | Estimated market |
Tier B Breakdown: - Lot 1 (230 Franklin): $43.83M - $56.18M (~98.5%) - Lot 72 (117 Green): $0.66M - $0.89M (~1.5%)
Required Action: Independent appraisal before litigation deployment.
5. Equity Band Analysis¶
5.1 Historical Time-Slice Analysis (Tier A Methodology)¶
As of 2008:
| Factor | Low | Mid | High |
|---|---|---|---|
| Estimated Property Value | $3.5M | $4.5M | $5.5M |
| Recorded Encumbrances | $2.8M | $2.8M | $2.8M |
| Implied Equity Band | $0.7M | $1.7M | $2.7M |
Source: L-2007-01 ($2.25M) principal; LTV assumption 50-80%
As of 2014:
| Factor | Low | Mid | High |
|---|---|---|---|
| Estimated Property Value | $8M | $12M | $16M |
| Recorded Encumbrances | $3M | $3M | $3M |
| Implied Equity Band | $5M | $9M | $13M |
Source: L-2012-01 ($2.25M) suggests significant equity buildup; L-2016-01 ($3M) confirms
As of 2019:
| Factor | Low | Mid | High |
|---|---|---|---|
| Estimated Property Value | $15M | $22M | $30M |
| Recorded Encumbrances | $3.25M | $3.25M | $3.25M |
| Implied Equity Band | $11.75M | $18.75M | $26.75M |
Source: L-2019-01 ($3.25M) at new lender suggests refinance with substantial equity; market peak
5.2 Current Equity Summary (2024)¶
| Tier | Low Equity | Mid Equity | High Equity | Status |
|---|---|---|---|---|
| Tier A (ACRIS Floor) | $13.9M | $20.9M | $27.9M | Documented minimum |
| Tier B (Comp-Based) | $40.39M | $42.75M | $52.97M | Estimated market |
Tier B Components: - Lot 1 equity: $39.73M / $41.98M / $52.08M - Lot 72 equity: $0.66M / $0.77M / $0.89M
Equity Trend: Consistent growth from 2008 to present, reflecting both debt management and Brooklyn industrial/loft market appreciation.
6. Current Encumbrance Summary¶
6.1 Known Encumbrances¶
| Type | Holder | Amount | Priority | Collateral |
|---|---|---|---|---|
| First Mortgage | Customers Bank (L-2024-02) | $4,100,000 | Senior | Lots 1 & 72 |
| Municipal liens | NYC (if any) | TBD | Per statute | TBD |
| Judgment liens | None recorded | - | - | - |
6.2 Priority Notes¶
- Bank mortgage holds senior position on Block 2512 (both lots)
- Judgment liens filed after mortgage would be junior
- OATH remediation liens (if any) have statutory priority rules - see Green C001
- Current title search required for complete encumbrance picture
7. Collection Capacity Implications¶
7.1 Tier 1 Equity Available¶
Based on the two-tier 2024 analysis:
| Tier | Low | Mid | High | Notes |
|---|---|---|---|---|
| Tier A (ACRIS Floor) | $13.9M | $20.9M | $27.9M | Documented minimum |
| Tier B (Comp-Based) | $40.39M | $42.75M | $52.97M | Pending appraisal |
Tier B Breakdown:
| Component | Low | Mid | High |
|---|---|---|---|
| Lot 1 (230 Franklin) | $39.73M | $41.98M | $52.08M |
| Lot 72 (117 Green) | $0.66M | $0.77M | $0.89M |
7.2 Practical Considerations (Facts Only)¶
Factors supporting collection capacity: - Clear fee simple title from government transfer - Single senior lienholder (facilitates negotiations) - Substantial equity cushion above mortgage debt - Active commercial operations indicate ongoing revenue - Verified building area (112,105 sq ft Lot 1 + 2,214 sq ft Lot 72) supports Tier B estimates - Both lots encumbered by same mortgage (unified collateral package)
Factors requiring verification: - Exact current mortgage payoff amount - Any municipal liens not yet recorded - Market conditions at time of potential foreclosure - Priority of any OATH remediation liens - Independent appraisal to confirm Tier B values
7.3 Green B001 to Green D001 Handoff¶
This equity analysis provides input for Green D001 (Recovery Band Calculation): - B001 Tier A equity: $13.9M-$27.9M range (documented floor) - B001 Tier B equity: $40.39M-$52.97M range (estimated market, both lots) - Lot 1: $39.73M-$52.08M - Lot 72: $0.66M-$0.89M - B002 will add Tier 2 (receivables) and Tier 3 (UCC) assets - D001 applies collection haircuts to derive realistic recovery bands
Sensitivity Note: Lot 72 represents ~1.5% of Tier B value. The overall capacity bands are not materially sensitive to Lot 72 valuation estimates.
Strategy Note: How these capacity bands translate to settlement posture or enforcement sequence is addressed in Purple Vol 08, not Green.
8. Source Authority¶
| Data Element | Source | Verification Status |
|---|---|---|
| Ownership chain | ACRIS deed records | Verified |
| Loan IDs and CRFNs | Grey Vol 11 B001 (ACRIS Spine) | Verified |
| Principal amounts | ACRIS mortgage records | Verified |
| Lot 1 building area (112,105 sq ft) | NYC DOF Property Portal | Verified |
| Lot 72 area (2,214 sq ft) | Public records | Verified |
| Lot 1 price/SF benchmarks | Brooklyn market data (2022-2025) | External research |
| Lot 72 land value benchmarks | Greenpoint industrial land market | External research |
| Tier A property values | LTV-inference estimates | Documented floor |
| Tier B-1 property values (Lot 1) | Comp-based calculation | Estimated (appraisal required) |
| Tier B-2 property values (Lot 72) | Land-value calculation | Estimated (appraisal required) |
| Equity bands | Calculated from above | Derived |
Limitations Stated: - Tier A equity bands are FLOORS based on LTV inference methodology - Tier B equity bands require independent appraisal verification - Tier B-2 (Lot 72) uses land-value methodology for small warehouse parcel; ~1.5% of total Tier B - Exact current mortgage balance may differ from recorded principal - Municipal lien status requires updated title search
END — Green Tab B001 - Block 2512 Equity Analysis v1.3