Eitan Binet signs $5.15M construction loan for 8-unit project in East Flatbush

Eitan Binet through the entity Bhnv 6 Midwood LLC as borrower signed a construction loan with lender Conventus through the entity Conventus LLC valued at $5.15 million for the development site at 466 Midwood Street in East Flatbush, Brooklyn.
Binet bought the property simultaneously for $2.2 million from Einav Gelberg through the entity 466 Midtwood St LLC. Gelberg in turn bought the property only five months earlier for $1.6 million. Gelberg filed plans in November 2021 for an 8-unit apartment building.

The deal closed on March 23, 2022 and was recorded on April 18, 2022.
The property has 1,600 square feet of built space and 8,120 square feet of additional air rights for a total buildable of 9,720 square feet according to PincusCo analysis of city data. The loan price per built square foot is $3,218 and the price per buildable square foot is $529 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 October 14, 2021, for $1.6 million. The signatory for Eitan Binet was Eitan Binet.

The property

The 466 Midwood parcel has frontage of 40 feet and is 100 feet deep with a total lot size of 4,000 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 $888,000.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $50 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for an eight-unit, 7,917-square-foot R-2 building. The project was developed by Einav Gelberg with plans filed November 23, 2021 and it has not been permitted yet.

The neighborhood

In East Flatbush, the bulk, or 42 percent of the 78.9 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 20 percent of the space. In sales, East Flatbush has had very little sales volume relative to other neighborhoods with $177.2 million in sales volume in the last two years. For development, East Flatbush has 2.3 times the average amount of major developments relative to other neighborhoods and is the 10th highest in Brooklyn. It had 2.1 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. There were 10 pre-foreclosure suit filed among other 1-4 family buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of one of the four commercial properties representing 66,370 square feet of the 76,237 square feet. The identified owner is Joel Wertzberger. There are three active new building construction projects totaling 20,807 square feet. The largest is a eight-unit, 7,917-square-foot R-2 building developed by Einav Gelberg with plans filed November 23, 2021 and it has not been permitted yet.

The majority, or 61 percent of the 212,477 square feet of built space are 1-4 family buildings, with residential elevator buildings next occupying 31 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 466 Midwood that occurred over the past 24 months.

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