Candor Capital pays $4.5M for dev site, gets $16M construction loan, in Midwood

Candor Capital through the entity Cedar St 1613 Holdings LLC paid $4.5 million to Yousef Lati through the entity 1613 Cedar LLC for the development building (V0) at 1611-1615 Cedar Street in Midwood, Brooklyn.
At the same time Candor Capital through the entity Cedar St 1613 Holdings LLC as borrower signed a new construction loan with lender S3 Capital through the entity S3 RE Funding III LLC valued at $16 million for the development site (V0) at 1611-1615 Cedar Street in Midwood, Brooklyn.
The deal closed on November 6, 2023 and was recorded on November 9, 2023. The property has 1,620 square feet of built space and 24,584 square feet of additional air rights for a total buildable of 24,584 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $183 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 seller bought the property on September 17, 2021, for $1.4 million. The signatory for Yousef Lati was Yousef Lati. The signatory for Candor Capital was Chaim Wurzberger. The contract date was July 6, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Candor Capital purchased five properties in four transactions for a total of $34.2 million and has no record it sold any properties over the past 24 months.
The seller Yousef Lati had not purchased any other properties and sold two properties in one transactions for a total of $3.3 million over the same time period.

The property

The parcel has frontage of 123 feet and is 108 feet deep with a total lot size of 6,146 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $841,000.

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 $18,750 in ECB penalties and $21,380 in OATH penalties in the last year.

Development

On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 13,079 square feet. The largest is a new building project for a 10-unit, 7,276 square-foot R-2 building submitted by Joseph Horowitz with plans filed August 31, 2017 and it has not been permitted yet. The second largest is a major alteration project for a 10-unit, 7,481 square-foot R-2 building submitted by Joseph Horowicz with plans filed November 14, 2017 and it has not been permitted yet.

The neighborhood

In Midwood, The majority, or 53 percent of the 19.3 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 15 percent of the space. In sales, Midwood has 1.3 times the average sales volume among other neighborhoods with $466.9 million in sales volume in the last two years and is the 17th highest in Brooklyn. For development, Midwood has had very little major development activity relative to other neighborhoods.It had 557,007 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.

The block

On this tax block, PincusCo has identified the owners of two of the 14 commercial properties representing 26,340 square feet of the 58,729 square feet. The two identified owners are Jeno Guttmann and Burke Leighton Group.
On the tax block, there were three new building construction projects totaling 31,402 square feet. The largest is a 17-unit, 15,738 square-foot residential (R-2) building submitted by Ramazi Mitaishuili with plans filed September 5, 2017 and permitted May 17, 2022. The second largest is a 11-unit, 8,388 square-foot residential (R-2) building submitted by Eliran Eliran with plans filed September 26, 2014 and it has not been permitted yet.

The majority, or 55 percent of the 58,729 square feet of built space are mixed-use buildings, with walkup buildings next occupying 38 percent of the space.

The seller

The PincusCo database currently indicates that Yousef Lati owned at least four commercial properties with 48 residential units in New York City with 46,771 square feet and a city-determined market value of $5.3 million. (Market value is typically about 50% of actual value.) The portfolio has $14.5 million in debt, with top three lenders as Kearny Bank, Flushing Bank, and Churchill Real Estate Holdings respectively. Within the portfolio, the bulk, or 73 percent of the 46,771 square feet of built space are elevator properties, with retail properties next occupying 23 percent of the space. They are all located in Bronx.

The buyer

The PincusCo database currently indicates that Candor Capital owned at least 10 commercial properties with 136 residential units in New York City with 46,976 square feet and a city-determined market value of $17.7 million. (Market value is typically about 50% of actual value.) The portfolio has $115.4 million in debt, with top three lenders as Valley National Bank, S3 Capital, and Webster Bank respectively. Within the portfolio, the bulk, or 36 percent of the 46,976 square feet of built space are elevator properties, with walkup properties next occupying 20 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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