Hampshire Properties signs $24M refi for new 59-unit building in Flatlands

Hampshire Properties through the entity One Nostrand Center LLC as borrower signed a refi loan with lender MF1 Capital valued at $24 million for the 59-unit, 66,835-square-foot building at 2339 Nostrand Avenue in Flatlands, Brooklyn.
On the lot, there was one new building construction project, 321595653, for a 59-unit, 51,111 square-foot R-2 building. The project was submitted by Hampshire Properties and filed by Robert Rosenthal with plans filed November 1, 2019 and permitted August 27, 2021.
The deal closed on August 2, 2024 and was recorded on August 20, 2024. The prior lender was Bank Hapoalim which held debt that had an original loan amount of $20 million.
The owner bought the property on November 3, 2017, for $4.5 million. The signatory for Hampshire Properties was Tomas Rosenthal. The signatory for MF1 Capital was Carolyn Burgess.
MF1 Capital is a venture of Boston-based Berkshire and Limekiln Real Estate.

The property

The parcel has frontage of 115 feet and is 105 feet deep with a total lot size of 12,075 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 $918,000. The most recent loan totaled $20 million and was provided by Bank Hapoalim on August 11, 2021.

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 one DOB violation, $5,000 in ECB 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 $100.7 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 213,667 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 four of the 17 commercial properties representing 97,597 square feet of the 188,551 square feet. The largest owner is Marcal Group, followed by United States Postal Service and then Hampshire Properties.
On the tax block, there was one new building construction project filed totaling 51,111 square feet. It is a 59-unit, 51,111 square-foot residential (R-2) building submitted by Hampshire Properties and filed by Robert Rosenthal with plans filed November 1, 2019 and permitted August 27, 2021.

The majority, or 72 percent of the 188,551 square feet of built space are office buildings, with retail buildings next occupying 14 percent of the space.

The borrower

The PincusCo database currently indicates that Hampshire Properties owned at least three commercial properties with 97 residential units in New York City with 147,465 square feet and a city-determined market value of $14.5 million. (Market value is typically about 50% of actual value.) The portfolio has $122.7 million in debt, with top three lenders as Bank Leumi, Bank Hapoalim, and JPMorgan Chase respectively. Within the portfolio, the bulk, or 100 percent of the 147,465 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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