Flagstar Bank files 7 pre-foreclosures in Brooklyn totaling $42.8M against single borrower

Flagstar Bank filed seven pre-foreclosure actions in Brooklyn yesterday totaling $42.8 million in original loan principals, alleging the debt secured by multifamily buildings owned by affiliates of Coney Realty Group were in payment defaults.

Court filings represent the position of one party and are not necessarily accurate or complete.

The filings did not name Coney Realty Group, but did identify its principal, Peter Rebenwurzel, as a guarantor. New York Community Bank, which acquired Flagstar Bank in 2022, then rebranded as Flagstar Bank, originated the loans in 2019. The complaint says, “Borrower is in default under the Loan Documents for, among other things, its failure to make timely monthly payments under the Loan Documents since at least January 1, 2025.”

The property

The elevator building 285 Hawthorne Street with 82 residential units in Prospect Lefferts Gardens has 91,596 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 140 feet and is 166 feet deep with a total lot size of 23,279 square feet. The lot is irregular. 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 $5.5 million. Case LINK

The elevator building 2512 Avenue D with 53 residential units in Flatbush has 41,452 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 95 feet deep with a total lot size of 9,500 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 $2.8 million. Case LINK

The elevator building 1388 West 6th Street with 48 residential units in Bensonhurst has 50,400 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 120 feet and is 100 feet deep with a total lot size of 12,000 square feet. The zoning is R5B which allows for up to 1.35 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.9 million. Case LINK

The elevator building 1656 East 19th Street with 42 residential units in Sheepshead Bay has 50,400 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.8 million. Case LINK

The walkup building 514 Rockaway Parkway with 32 residential units in East Flatbush has 24,000 square feet of built space and 300 square feet of additional air rights for a total buildable of 24,300 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 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 $1.8 million. Case LINK

The walkup building 1077 New York Avenue with 30 residential units in East Flatbush has 22,120 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 79 feet and is 99 feet deep with a total lot size of 7,900 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 $1.9 million. Case LINK

The elevator building 1114 New York Avenue with 35 residential units in East Flatbush has 29,934 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 67 feet and is 105 feet deep with a total lot size of 7,049 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 $2.4 million. Case LINK

Prior sales and revenue

This property 285 Hawthorne Street  was sold for $8.8 million on October 11, 2007.

The 91,596-square-foot property generated revenue of $1.4 million or $15 per square foot, according to the most recent income and expense figures.

Violations and lawsuits

According to city public data, the property has received 111 housing violations, $350 in OATH penalties, and one housing litigation in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Prospect Lefferts Gardens, The majority, or 55 percent of the 11.1 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 24 percent of the space. In sales, Prospect Lefferts Gardens has near average sales volume among other neighborhoods with $110.5 million in sales volume in the last two years and is the 34th highest in Brooklyn. For development, Prospect Lefferts Gardens has near average amount of major developments among other neighborhoods and is the 34th highest in Brooklyn. It had 256,394 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block of 285 Hawthorne Street , PincusCo has identified the owners of 14 of the 30 commercial properties representing 256,539 square feet of the 368,370 square feet. The largest owner is Atkins & Breskin, followed by City Of New York and then Coney Realty Group. On the tax block, there were four new building construction projects totaling 10,818 square feet. The largest is a two-unit, 3,163 square-foot residential (R-2) building submitted by Jay Lau with plans filed February 28, 2023 and permitted November 9, 2023. The second largest is a two-unit, 3,151 square-foot residential (R-2) building submitted by Jay Lau with plans filed February 28, 2023 and permitted November 20, 2023.

The owner

The PincusCo database currently indicates that Coney Realty Group owned at least 67 commercial properties with 3,299 residential units in New York City with 3,015,318 square feet and a city-determined market value of $207.7 million. (Market value is typically about 50% of actual value.) The portfolio has $73.8 million in debt, borrowed from Signature Bank and New York Community Bank. Within the portfolio, the bulk, or 67 percent of the 3,015,318 square feet of built space are elevator properties, with walkup properties next occupying 33 percent of the space. The bulk, or 76 percent of the built space, is in Brooklyn, with Manhattan next at 21 percent of the space.

The owners according to the Department of Housing Preservation and Development includes Peter Rebenwurzel, head officer and Michael Haas, officer. The business entities are 285 Hawthorne Realty, Llc and 285 Hawthorne Realty, Llc.

The surrounding

This is the first commercial real estate event of interest identified within the 400-foot radius of 285 Hawthorne Street in the past 24 months.

Direct link to the property’s ACRIS page
Direct link to the property’s ACRIS page
Direct link to the property’s ACRIS page
Direct link to the property’s ACRIS page
Direct link to the property’s ACRIS page
Direct link to the property’s ACRIS page
Direct link to the property’s ACRIS page

and link to DOB NOW portal.