Jacob Hirsch signs $16.2M construction loan with Genesis Capital for 47-unit project in Sheepshead Bay

Jacob I. Hirsch through the entity P And 21 LLC as borrower signed a new construction loan with lender Genesis Capital valued at $16.2 million for the development site (V0) at 2108 Avenue P in Sheepshead Bay, Brooklyn.
The deal closed on September 23, 2022 and was recorded on October 12, 2022.The property has zero square feet of built space and 16,000 square feet of additional air rights for a total buildable of 16,000 square feet according to PincusCo analysis of city data. The loan price per built square foot is $N/A and the price per buildable square foot is $1,012 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 February 17, 2022, for $2.2 million. The signatory for Jacob I. Hirsch was Jacob I. Hirsch.

The property

The 2108 Avenue P parcel has frontage of 40 feet and is 100 feet deep with a total lot size of 4,000 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 $311,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

On the lot, there is one active new building construction project for a 47-unit, 32,000 square-foot R-2 building. The project was developed by Jacob Hirsch with plans filed March 25, 2022 and it has not been permitted yet.

The neighborhood

In Sheepshead Bay, the bulk, or 43 percent of the 25.8 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Sheepshead Bay has near average sales volume among other neighborhoods with $311.9 million in sales volume in the last two years and is the 19th highest in Brooklyn. For development, Sheepshead Bay has had very little major development activity relative to other neighborhoods.It had 591,346 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, PincusCo has identified the owners of three of the nine commercial properties representing 22,320 square feet of the 82,664 square feet. The two identified owners are Yaakov Roth and Jacob R. Hirsch.
On the tax block, there was one new building construction project filed totaling 32,000 square feet. It is a 47-unit, 32,000-square-foot R-2 building developed by Jacob Hirsch with plans filed March 25, 2022 and permitted September 15, 2022.

The majority, or 81 percent of the 78,974 square feet of built space are elevator buildings, with mixed-use buildings next occupying 11 percent of the space.

The borrower

The PincusCo database currently indicates that Jacob I. Hirsch owned at least two commercial properties in New York City with 35,997 square feet and a city-determined market value of $6 million. (Market value is typically about 50% of actual value.) The portfolio has $28 million in debt, borrowed from Customers Bank. Within the portfolio, the bulk, or 100 percent of the 35,997 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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