Abraham Brach signs $15M construction loan with Levon Capital for development in Williamsburg
Abraham Brach through the entity Sig 314 Rutledge LLC as borrower signed a new construction loan with lender Levon Capital through the entity Levon Ny Lxxiii LLC valued at $15 million for the development building (V1) at 314 Rutledge Street in Williamsburg, Brooklyn.
On the lot, there is one active new building construction project for a 42,221 square-foot building. The project was submitted by Abraham Brach and filed by Abe Brach with plans filed January 30, 2023 and it has not been permitted yet.
The deal closed on January 18, 2024 and was recorded on February 5, 2024. The prior lender was Levon Capital which held debt that had an original loan amount of $4.4 million.
The owner bought the property on January 13, 2023, for $2 million. The signatory for Abraham Brach was Abraham Brach.
The property
The development building in Williamsburg has 8,800 square feet of built space and 17,598 square feet of additional air rights for a total buildable of 17,598 square feet according to a PincusCo analysis of city data. The parcel has frontage of 88 feet and is 100 feet deep with a total lot size of 8,799 square feet. The zoning is C8-2 which allows for up to 2 times floor area ratio (FAR) for commercial. The city-designated market value for the property in 2022 is $761,000.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $7,500 in ECB penalties in the last year.
The neighborhood
In Williamsburg, The bulk, or 39 percent of the 50.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 25 percent of the space. In sales, Williamsburg has the 5th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Williamsburg is the 10th most active neighborhood among other neighborhoods. It had 4.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of two of the 10 commercial properties representing 85,324 square feet of the 187,440 square feet. The two identified owners are Abraham Mendlovic and Abraham Brach.
On the tax block, there were two new building construction projects totaling 115,902 square feet. The largest is a 24-unit, 73,681 square-foot residential (R-2) building submitted by Greenline Consultants and filed by Joseph Templer with plans filed March 24, 2023 and it has not been permitted yet. The second largest is a 42,221 square-foot building submitted by Abraham Brach and filed by Abe Brach with plans filed January 30, 2023 and it has not been permitted yet.
The majority, or 48 percent of the 187,440 square feet of built space are elevator buildings, with industrial buildings next occupying 28 percent of the space.
The borrower
The PincusCo database currently indicates that Abraham Brach owned at least seven commercial properties with 162 residential units in New York City with 233,838 square feet and a city-determined market value of $20.7 million. (Market value is typically about 50% of actual value.) The portfolio has $148.1 million in debt, with top three lenders as G4 Capital Partners, BridgeCity Capital, and Blue Foundry Bank respectively. Within the portfolio, the bulk, or 83 percent of the 233,838 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. They are all located in Brooklyn.
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