Borough Developers, Watermark Capital sign $18.5M construction loan with Oak Funding in Bushwick

Borough Developers and Watermark Capital Group through the entity Flushing Holdings NY LLC as borrower signed a new construction loan with lender Oak Funding through the entity Oak Bushwick LLC valued at $18.5 million for the industrial building (G3) at 860 Flushing Avenue in Bushwick, Brooklyn.

On the lot, there is one active new building construction project, B01204032, for a 60-unit, 41,303 square-foot R-2 building. The project was submitted by Borough Developers and filed by Mendel Berkowitz with plans filed April 4, 2025 and permitted July 7, 2025.

The deal closed on March 11, 2026 and was recorded on March 18, 2026. The property has 1,596 square feet of built space and 30,210 square feet of additional air rights for a total buildable of 31,800 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $11,591 and the price per buildable square foot is $581 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on January 28, 2009, for $2.1 million. The signatory for Borough Developers and Watermark Capital Group was Meir D. Tabak . The signatory for Oak Funding was Jeremy Levart .

The property

The industrial building in Bushwick has 1,596 square feet of built space and 30,210 square feet of additional air rights for a total buildable of 31,800 square feet according to a PincusCo analysis of city data. The parcel has frontage of 124 feet and is 82 feet deep with a total lot size of 10,600 square feet. The lot is irregular. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.6 million.

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 $3,500 in ECB penalties and $4,430 in OATH penalties in the last year.

The neighborhood

In Bushwick, The bulk, or 44 percent of the 33.6 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 18 percent of the space. In sales, Bushwick has 1.6 times the average sales volume among other neighborhoods with $527.7 million in sales volume in the last two years and is the 12th highest in Brooklyn. For development, Bushwick has had very little major development activity relative to other neighborhoods.It had 1.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There were 31 pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of nine of the 13 commercial properties representing 79,379 square feet of the 90,720 square feet. The largest owner is Linda Vera-Benitez, followed by Joel Wieder and then Rivington Company.
On the tax block, there were two new building construction projects totaling 90,358 square feet. The largest is a 50-unit, 49,055 square-foot residential (R-2) building submitted by Rivington Company and filed by Travis Stabler with plans filed July 24, 2020 and permitted September 26, 2022. The second largest is a 60-unit, 41,303 square-foot residential (R-2) building submitted by Borough Developers and filed by Mendel Berkowitz with plans filed April 4, 2025 and permitted July 7, 2025.

The majority, or 74 percent of the 90,720 square feet of built space are walkup buildings, with industrial buildings next occupying 18 percent of the space.

The borrower

The PincusCo database currently indicates that Watermark Capital Group owned at least 150 commercial properties with 1,771 residential units in New York City with 1,828,250 square feet and a city-determined market value of $346.8 million. (Market value is typically about 50% of actual value.) The portfolio has $538.2 million in debt, with top three lenders as Slate Property Group, BridgeCity Capital, and S3 Capital respectively. Within the portfolio, the bulk, or 45 percent of the 1,828,250 square feet of built space are walkup properties, with elevator properties next occupying 14 percent of the space. The bulk, or 89 percent of the built space, is in Brooklyn, with Queens next at 6 percent of the space.
The PincusCo database currently indicates that Borough Developers owned at least 23 commercial properties with 166 residential units in New York City with 207,862 square feet and a city-determined market value of $37.5 million. (Market value is typically about 50% of actual value.) The portfolio has $67.5 million in debt, with top three lenders as S3 Capital, Strong Entities, and Broadview Capital respectively. Within the portfolio, the bulk, or 37 percent of the 207,862 square feet of built space are specialty properties, with D1 properties next occupying 28 percent of the space. The bulk, or 61 percent of the built space, is in Brooklyn, with Manhattan next at 37 percent of the space.

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