Aleksandr Finkelshteyn signs $18.6M construction loan for 42K sf office project in Sheepshead Bay

Aleksandr Finkelshteyn and Igor Sobolevsky through the entity Chestnut Avenue LLC as borrower signed a new construction loan with lender Bank of Princeton valued at $18.6 million for the development building (V1) at 3121 Ocean Avenue in Sheepshead Bay, Brooklyn.
The deal closed on June 23, 2022 and was recorded on July 7, 2022. The property has zero square feet of built space.
The owner bought the property on April 24, 2014, for $5.4 million. The signatory for Aleksandr Finkelshteyn and Igor Sobolevsky was Aleksandr Finkelshteyn and Igor Sobolevsky.

The property

The 3121 Ocean Avenue parcel has frontage of 199 feet and is 93 feet deep with a total lot size of 21,113 square feet. The lot is irregular. The zoning is R4 which allows for up to 0.75 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $845,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

On these lots, there is one active new building construction project for a 42,192-square-foot B building. The project was developed by Alex Finkelshteyn with plans filed May 12, 2020 and it has not been permitted yet.

The neighborhood

In Sheepshead Bay, the majority, or 56 percent of the 36 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 15 percent of the space. In sales, Sheepshead Bay has had very little sales volume relative to other neighborhoods with $266.2 million in sales volume in the last two years. For development, Sheepshead Bay has had very little major development activity relative to other neighborhoods.It had 754,027 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the three commercial properties representing 31,392 square feet of the 49,221 square feet. The identified owner is Cammeby’s International Group. There are two active new building construction projects totaling 43,400 square feet. The largest is the 42,192-square-foot B building developed by Alex Finkelshteyn with plans filed May 12, 2020 and it has not been permitted yet. The second largest is a one-unit, 1,208-square-foot R-3 building developed by Michael Lisker with plans filed March 31, 2016 and it has not been permitted yet.

The majority, or 52 percent of the 60,181 square feet of built space are residential walkup buildings, with specialty buildings next occupying 48 percent of the space.

The borrower

The PincusCo database currently indicates that Aleksandr Finkelshteyn owned at least six commercial properties with 59,597 square feet and a city-determined market value of $7.2 million. (Market value is typically about 50% of actual value.) The portfolio has $14.8 million in debt, borrowed from Citibank and Dime Community Bank. Within the portfolio, the bulk, or 70 percent of the 59,597 square feet of built space are office properties, with industrial properties next occupying 14 percent of the space. The bulk, or 88 percent of the built space, is in Brooklyn, with Queens next at 12 percent of the space.
The PincusCo database currently indicates that Igor Sobolevsky owned at least one commercial property with 41,564 square feet and a city-determined market value of $3.3 million. (Market value is typically about 50% of actual value.) The portfolio has $12 million in debt, borrowed from Patriot Bank. The portfolio consists of at least a single office property. It is located in Brooklyn.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 3121 Ocean Avenue that occurred over the past 24 months.

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