Borough Developers, Watermark borrow $63M from Integritas to build Park Slope project

Borough Developers and Watermark Capital Group through the entity Sixty Seven Fourth LLC as borrower signed a new construction loan with lender Integritas Capital through the entity Integritas St Marks LLC valued at $63 million for six properties with 22 residential units including the four-unit mixed-use building (S4) at 75 4th Avenue in Park Slope, Brooklyn, four-unit mixed-use building (S4) at 73 4th Avenue in Park Slope, Brooklyn, and four-unit mixed-use building (S4) at 71 4th Avenue in Park Slope, Brooklyn.
The deal closed on September 18, 2025 and was recorded on September 29, 2025. The prior lender was Castellan Capital which held debt that had an original loan amount of $9 million.The six properties have 24,212 square feet of built space and 30,833 square feet of additional air rights for a total buildable of 55,052 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $2,602 and the price per buildable square foot is $1,144 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 signatory for Borough Developers and Watermark Capital Group was Meir D. Tabak . The signatory for Integritas Capital was Stephen Palmese .

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 75 4th Avenue.

Prior sales and revenue

Out of the six properties, three with a total of 24,212 square feet of built space generated revenue of $483,729 per year.

The property

The mixed-use building with 4 residential units in Park Slope has 24,212 square feet of built space and 30,833 square feet of additional air rights for a total buildable of 55,052 square feet according to a PincusCo analysis of city data. The parcel has frontage of 19 feet and is 68 feet deep with a total lot size of 1,350 square feet. The zoning is C4-4D which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.1 million. Castellan Capital on July 28, 2023 bought a loan with an original principal of 9000000.0 from Castellan Capital signed by Meir D. Tabak, secured by 75 4th Avenue, when owned by Borough Developers|Watermark Capital Group.

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 received $3,730 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project, B01249173, for a 99-unit, 88,943 square-foot R-2 building. The project was submitted by Borough Developers and filed by Shimon Kleinman with plans filed July 15, 2025 and it has not been permitted yet.

The neighborhood

In Park Slope, The bulk, or 36 percent of the 9.8 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 26 percent of the space. In sales, Park Slope has 2.6 times the average sales volume among other neighborhoods with $761.7 million in sales volume in the last two years and is the 5th highest in Brooklyn. For development, Park Slope 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 11 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On the tax block of 75 4th Avenue, PincusCo has identified the owners of nine of the 22 commercial properties representing 36,691 square feet of the 83,491 square feet. The largest owner is United Elite Group, followed by Joel Schwartz and then Roberto Alfonso.
On the tax block, there was one new building construction project filed totaling 88,943 square feet. It is a 99-unit, 88,943 square-foot residential (R-2) building submitted by Borough Developers and filed by Shimon Kleinman with plans filed July 15, 2025 and it has not been permitted yet.

The majority, or 87 percent of the 83,491 square feet of built space are mixed-use buildings, with walkup buildings next occupying 13 percent of the space.

The borrower

The PincusCo database currently indicates that Watermark Capital Group owned at least 142 commercial properties with 1,563 residential units in New York City with 1,684,851 square feet and a city-determined market value of $330.8 million. (Market value is typically about 50% of actual value.) The portfolio has $338.3 million in debt, with top three lenders as Slate Property Group, BridgeCity Capital, and QuadReal Property Group respectively. Within the portfolio, the bulk, or 49 percent of the 1,684,851 square feet of built space are walkup properties, with elevator properties next occupying 15 percent of the space. The bulk, or 88 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 16 commercial properties with 144 residential units in New York City with 180,150 square feet and a city-determined market value of $25.7 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 43 percent of the 180,150 square feet of built space are specialty properties, with D1 properties next occupying 32 percent of the space. The bulk, or 57 percent of the built space, is in Brooklyn, with Manhattan next at 43 percent of the space.

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