Chaim Wurzberger signs $16.4M construction loan for development in East Flatbush

Chaim Wurzberger through the entity 716 E32 Holdings LLC as borrower signed a new construction loan with lender S3 Capital through the entity S3 Re Funding III LLC valued at $16.4 million for two 716 East 32nd Street and 3120 Glenwood Road in East Flatbush, Brooklyn.
On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 11,122 square feet. The largest, 320910225, is a new building project for a eight-unit, 6,322 square-foot R-2 building submitted by Dan Vaknine with plans filed December 14, 2017 and permitted May 24, 2022. The second largest, 321191900, is a new building project for a eight-unit, 4,800 square-foot R-2 building submitted by Dan Vaknine with plans filed November 20, 2017 and permitted May 24, 2022.
The deal closed on October 30, 2024 and was recorded on November 6, 2024. The two properties have 2,589 square feet of built space and 22,300 square feet of additional air rights for a total buildable of 24,900 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $6,315 and the price per buildable square foot is $656 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 Chaim Wurzberger was Chaim Wurzberger.

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 716 East 32nd Street.

The property

The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.4 million.

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 $625 in ECB penalties and $1,025 in OATH penalties in the last year.

The block

On the tax block of 716 East 32nd Street, PincusCo has identified the owners of six of the eight commercial properties representing 175,991 square feet of the 190,691 square feet. The largest owner is Susan Leist, followed by Raymond Y. Davoodi and then Hershy Rosenfeld.
On the tax block, there were two new building construction projects totaling 11,122 square feet. The largest is a eight-unit, 6,322 square-foot residential (R-2) building submitted by Dan Vaknine with plans filed December 14, 2017 and permitted May 24, 2022. The second largest is a eight-unit, 4,800 square-foot residential (R-2) building submitted by Dan Vaknine with plans filed November 20, 2017 and permitted May 24, 2022.

The majority, or 66 percent of the 190,691 square feet of built space are elevator buildings, with walkup buildings next occupying 26 percent of the space.

The borrower

The PincusCo database currently indicates that Chaim Wurzberger owned at least 11 commercial properties with 176 residential units in New York City with 114,884 square feet and a city-determined market value of $18.6 million. (Market value is typically about 50% of actual value.) The portfolio has $77 million in debt, with top three lenders as Investors Bank, JLL, and Golden Bridge Funding respectively. Within the portfolio, the bulk, or 72 percent of the 114,884 square feet of built space are elevator properties, with walkup properties next occupying 27 percent of the space. They are all located in Brooklyn.

Direct link to Acris document. link