CAVU Property Group signs $18M refi for six properties in East Flatbush
CAVU Property Group through the entity 1296-1298 Nya LLC as borrower signed a refi loan with lender Webster Bank valued at $18 million for six properties with nine residential units at 1597 New York Avenue, nine-unit residential walkup building (C1) at 1296 New York Avenue, and the nine-unit 3410 Farragut Road in East Flatbush, Brooklyn.
The deal closed on August 6, 2024 and was recorded on August 14, 2024. The prior lender was City National Bank which held debt that had an original loan amount of $15 million.
The signatory for CAVU Property Group was Steven Hurwitz. The signatory for Webster Bank was Yonathan Whitehouse. This is a take out loan to refinance a $15 million construction loan.
The neighborhood
In East Flatbush, The bulk, or 32 percent of the 42.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 24 percent of the space. In sales, East Flatbush has 1.5 times the average sales volume among other neighborhoods with $387 million in sales volume in the last two years and is the 18th highest in Brooklyn. For development, East Flatbush has 1.5 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Brooklyn. It had 1.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.
The block
On the tax block of 1597 New York Avenue, PincusCo has identified the owners of two of the 10 commercial properties representing 9,611 square feet of the 38,534 square feet. The two identified owners are Allied Realty & Development and Herman Kaufman.
On the tax block, there were six new building construction projects totaling 58,512 square feet. The largest is a 38-unit, 25,587 square-foot residential (R-2) building submitted by Herman Kaufman and filed by Herman Kaufman with plans filed February 15, 2022 and permitted August 25, 2022. The second largest is a 10-unit, 8,791 square-foot residential (R-2) building submitted by Rasna Chadha and filed by Rasna Chadha with plans filed July 10, 2024 and it has not been permitted yet.
The majority, or 57 percent of the 38,534 square feet of built space are walkup buildings, with retail buildings next occupying 20 percent of the space.
The borrower
The PincusCo database currently indicates that Cavu Property Group owned at least two commercial properties with 41 residential units in New York City with 46,359 square feet and a city-determined market value of $8.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 46,359 square feet of built space are elevator properties, with development properties next occupying 0 percent of the space. They are all located in Brooklyn.
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