Jacob Hirsch signs $21M refi loan with Customers Bank for 52-unit rental in Crown Heights

Jacob I. Hirsch through the entity Park And Prospect LLC as borrower signed a refi loan with lender Customers Bank valued at $21 million for the 52-unit residential elevator building (D3) at 1494 Prospect Place in Crown Heights, Brooklyn.
The deal closed on January 12, 2022 and was recorded on October 6, 2022. The prior lender was Goldman Sachs which held debt that had an original loan amount of $14.1 million.The property has 35,997 square feet of built space and 1,542 square feet of additional air rights for a total buildable of 37,485 square feet according to PincusCo analysis of city data. The loan price per built square foot is $583 and the price per buildable square foot is $560 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 January 17, 2018, for $4 million. The signatory for Jacob I. Hirsch was Jacob I. Hirsch. The signatory for Customers Bank was Leo DiLoreto.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Jacob Hirsch, head officer and Shmiel Fried, site manager. The business entity is Park & Prospect Llc.

The property

The 1494 Prospect Place parcel has frontage of 50 feet and is 252 feet deep with a total lot size of 15,426 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 $4.2 million.The most recent loan totaled $7 million and was provided by Customers Bank on January 12, 2022.

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 received two DOB violations and $100 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 25, 2021.

The block

On this tax block, PincusCo has identified the owners of 10 of the 15 commercial properties representing 220,328 square feet of the 234,540 square feet. The largest owner is Jacob Isaac Hirsch, followed by Saint Joseph’s Medical Center and then Pincus Schwimmer.
On the tax block, there were five new building construction projects totaling 27,504 square feet. The largest is a eight-unit, 6,870-square-foot R-2 building developed by Shahab Soleymani with plans filed December 23, 2019 and it has not been permitted yet.The second largest is a two-unit, 6,857-square-foot R-3 building developed by Shahab Soleymani with plans filed December 23, 2019 and it has not been permitted yet.

The majority, or 63 percent of the 234,540 square feet of built space are walkup buildings, with elevator buildings next occupying 31 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 $7 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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