Behrooz Shavolian signs $29.6M construction loan with Ponce Bank for development in Bedford Stuyvesant

Behrooz Shavolian through the entity Bed Stuy Fantastic Four LLC as borrower signed a loan with Ponce Bank valued at $29.6 million for eight development properties including the development site (V1) at 772 Myrtle Avenue in Bedford Stuyvesant, Brooklyn, and the development site (V1) at 890 Myrtle Avenue in Bedford Stuyvesant, Brooklyn.
On these lots, there are four active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 41,290 square feet. The largest is a new building project for a 18-unit, 15,997 square-foot R-2 building submitted by Rona Reodica with plans filed October 21, 2021 and it has not been permitted yet. The second largest is a new building project for a 10-unit, 9,989 square-foot R-2 building submitted by Rona Reodica with plans filed October 21, 2021 and it has not been permitted yet.
The deal closed on December 12, 2023 and was recorded on December 29, 2023.

The property

The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,499 square feet. The zoning is R7D which allows for up to 4.2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $331,000.
The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,499 square feet. The zoning is R7D which allows for up to 4.2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $331,000.
The parcel has frontage of 20 feet and is 100 feet deep with a total lot size of 2,000 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $194,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.

The neighborhood

In Bedford Stuyvesant, The bulk, or 35 percent of the 54.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Bedford Stuyvesant has 3.7 times the average sales volume among other neighborhoods with $1.2 billion in sales volume in the last two years and is the 3rd highest in Brooklyn. For development, Bedford Stuyvesant has 2.9 times the average amount of major developments relative to other neighborhoods and is the 3rd highest in Brooklyn. It had 2.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other development buildings in the past 12 months.

The block

On the tax block of 772 Myrtle Avenue, PincusCo has identified the owners of nine of the 24 commercial properties representing 140,022 square feet of the 159,003 square feet. The largest owner is Henrica Management, followed by Impacct Brooklyn and then Jacob Moskovics.
On the tax block, there were two new building construction projects totaling 49,676 square feet. The largest is a 60-unit, 39,835 square-foot residential (R-2) building submitted by NYC Department of Housing Preservation and Development and filed by Rona Reodica with plans filed December 13, 2019 and permitted January 18, 2023. The second largest is a 10-unit, 9,841 square-foot residential (R-2) building submitted by Rona Reodica with plans filed October 21, 2021 and it has not been permitted yet.

The majority, or 83 percent of the 159,003 square feet of built space are elevator buildings, with walkup buildings next occupying 10 percent of the space.

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