Candor Capital signs $16.1M construction loan with S3 Capital for 29-unit project in Flatbush

Candor Capital through the entity 80 Linden Blvd LLC as borrower signed a new construction loan with lender S3 Capital through the entity S3 Re Funding Iii LLC valued at $16.1 million for the specialty building (I5) at 80 Linden Boulevard in Flatbush, Brooklyn.
On the lot, there is one active new building construction project for a 29-unit, 18,827 square-foot R-2 building. The project was submitted by Candor Capital and filed by Charles Wurzberger with plans filed May 26, 2022 and it has not been permitted yet.
The deal closed on April 3, 2023 and was recorded on April 5, 2023. The property has 4,960 square feet of built space and 11,958 square feet of additional air rights for a total buildable of 16,928 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $3,245 and the price per buildable square foot is $951 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 December 16, 2021, for $3.2 million. The signatory for Candor Capital was Chaim Wurzberger. The signatory for S3 Capital was Joshua Crane.

The property

The specialty building in Flatbush has 4,960 square feet of built space and 11,958 square feet of additional air rights for a total buildable of 16,928 square feet according to a PincusCo analysis of city data. The parcel has frontage of 43 feet and is 114 feet deep with a total lot size of 4,921 square feet. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $617,000.

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 $350 in OATH penalties in the last year.

The neighborhood

In Flatbush, The majority, or 54 percent of the 37.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 22 percent of the space. In sales, Flatbush has near average sales volume among other neighborhoods with $387.1 million in sales volume in the last two years and is the 19th highest in Brooklyn. For development, Flatbush has 1.2 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Brooklyn. It had 1.2 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.

The block

On this tax block, PincusCo has identified the owners of 11 of the 21 commercial properties representing 182,671 square feet of the 258,808 square feet. The largest owner is Solomon Feder, followed by Sharp Management and then Seung Hyun Kim.
On the tax block, there were two new building construction projects totaling 31,523 square feet. The largest is a 29-unit, 18,827 square-foot residential (R-2) building submitted by Candor Capital and filed by Charles Wurzberger with plans filed May 26, 2022 and permitted June 7, 2022. The second largest is a 18-unit, 12,696 square-foot residential (R-2) building submitted by Solomon Feder with plans filed September 25, 2015 and it has not been permitted yet.

The majority, or 46 percent of the 258,808 square feet of built space are elevator buildings, with walkup buildings next occupying 38 percent of the space.

The borrower

The PincusCo database currently indicates that Chaim Wurzberger owned at least 12 commercial properties with 145 residential units in New York City with 118,137 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $91 million in debt, with top three lenders as Investors Bank, Webster Bank, and JLL respectively. Within the portfolio, the bulk, or 70 percent of the 118,137 square feet of built space are elevator properties, with walkup properties next occupying 27 percent of the space. They are all located in Brooklyn.

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