CAVU Property Group signs $41.1M construction loan for development in Flatlands

CAVU Property Group through the entity Nostrand Land LLC as borrower signed a new construction loan with lender Popular Bank valued at $41.1 million for the development site (V1) at 2273 Nostrand Avenue at the corner of Avenue I, in Flatlands, Brooklyn.
There is a new building project for a 67-unit, 89,149 square-foot residential (R-2) building submitted by Jackson Group and filed by Gabriel Chehebar with plans filed May 31, 2023 and permitted March 6, 2024.
The deal closed on June 11, 2024 and was recorded on June 25, 2024. The prior lender was Popular Bank which held debt that had an original loan amount of $6.5 million.

The owner bought the property on May 23, 2023, for $12.8 million. The signatory for CAVU Property Group was Steven Hurwitz. The signatory for Popular Bank was Gary Hoffson.

CAVU Property Group owns the parcel at 2255 Nostrand Avenue, where it filed plans in 2023 for a 33,921-square-foot office building.

The property

The parcel has frontage of 226 feet and is 100 feet deep with a total lot size of 22,624 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.5 million. The most recent loan totaled $6.5 million and was provided by Popular Bank on May 23, 2023.

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 $300 in OATH penalties in the last year.

The neighborhood

In Flatlands, The bulk, or 35 percent of the 6.3 million square feet of commercial built space are elevator buildings, with mixed-use buildings next occupying 19 percent of the space. In sales, Flatlands has had very little sales volume relative to other neighborhoods with $90.8 million in sales volume in the last two years. For development, Flatlands has had very little major development activity relative to other neighborhoods.It had 208,278 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 five of the six commercial properties representing 194,650 square feet of the 194,650 square feet. The largest owner is Maheshchand M. Ratanji, followed by Juda Rosenfeld and then CAVU Property Group.
On the tax block, there were five new building construction projects totaling 291,877 square feet. The largest is a 67-unit, 89,149 square-foot residential (R-2) building submitted by Jackson Group and filed by Gabriel Chehebar with plans filed May 31, 2023 and permitted December 12, 2023. The second largest is a 79,232 square-foot business (B) building submitted by Joyland Management and filed by Judy Wolcowitz with plans filed September 28, 2015 and it has not been permitted yet.

The majority, or 87 percent of the 194,650 square feet of built space are elevator buildings, with retail buildings next occupying 13 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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