Haussmann, Kriss Capital sign $38.5M construction loan with Urban Standard for project in Crown Heights

Haussmann Development and Kriss Capital through the entity 827 Sterling Owner LLC as borrower signed a construction loan with lender Urban Standard Capital through the entity USC 827 Sterling LLC, valued at $38.5 million for the development at 827 Sterling Place in Crown Heights, Brooklyn.
On the lot, there is one active new building construction project for a 79-unit, 53,098 square-foot R-2 building. The project was submitted by Kriss Capital and filed by Jody Kriss with plans filed March 28, 2022 and it has not been permitted yet.
The deal closed on September 21, 2023 and was recorded on October 2, 2023. The property has 33,822 square feet of built space and 19,859 square feet of additional air rights for a total buildable of 53,673 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $1,138 and the price per buildable square foot is $717 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 Haussmann Development was Josef Goodman.

Prior sales and revenue

The 33,822-square-foot property generated revenue of $165,823 or $5 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Crown Heights has 33,822 square feet of built space and 19,859 square feet of additional air rights for a total buildable of 53,673 square feet according to a PincusCo analysis of city data. The parcel has frontage of 140 feet and is 127 feet deep with a total lot size of 17,891 square feet. 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 $1.6 million.

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, $128,000 in ECB penalties, and $1,280 in OATH penalties in the last year.

The neighborhood

In Crown Heights, The bulk, or 39 percent of the 46.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 36 percent of the space. In sales, Crown Heights has 1.5 times the average sales volume among other neighborhoods with $535.8 million in sales volume in the last two years and is the 13th highest in Brooklyn. For development, Crown Heights has 3.2 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 3.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 23 of the 36 commercial properties representing 174,732 square feet of the 301,240 square feet. The largest owner is Sarah Julien, followed by Harry Bodansky and then Carlene Harris.
On the tax block, there were three new building construction projects totaling 64,949 square feet. The largest is a 79-unit, 53,098 square-foot residential (R-2) building submitted by Kriss Capital and filed by Jody Kriss with plans filed March 28, 2022 and it has not been permitted yet. The second largest is a seven-unit, 6,934 square-foot residential (R-2) building submitted by Ari Kirschrnbaum with plans filed May 14, 2015 and it has not been permitted yet.

The majority, or 54 percent of the 301,240 square feet of built space are walkup buildings, with specialty buildings next occupying 13 percent of the space.

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