Jacob Landau signs $22M construction loan for 62-unit project in Brownsville

Jacob Landau through the entity 394 Mother Gaston LLC as borrower signed a new construction loan with lender Popular Bank through the entity Popular Bank valued at $22 million for the industrial building (G7) at 394-402 Mother Gaston Boulevard in Brownsville, Brooklyn.
On the lot, there is one active new building construction project for a 62-unit, 74,380 square-foot residential (R-2) building. The project was submitted by TOT Developers and filed by Jacob Landau with plans filed May 1, 2020 and permitted June 6, 2022.
The deal closed on December 21, 2023 and was recorded on December 26, 2023.
The owner bought the property on August 27, 2019, for $1.9 million. The signatory for Jacob Landau was Jacob Landau.

The property

The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 9,999 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 $527,000.

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 $4,900 in ECB penalties and $4,950 in OATH penalties in the last year.

The neighborhood

In Brownsville, The bulk, or 46 percent of the 28.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Brownsville has had very little sales volume relative to other neighborhoods with $141.1 million in sales volume in the last two years. For development, Brownsville has near average amount of major developments among other neighborhoods and is the 19th highest in Brooklyn. It had 851,898 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. 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 one of the 15 commercial properties representing zero square feet of the 56,725 square feet. The identified owner is Vechskel Weiss.
On the tax block, there were three new building construction projects totaling 92,746 square feet. The largest is a 62-unit, 74,380 square-foot residential (R-2) building submitted by TOT Developers and filed by Jacob Landau with plans filed May 1, 2020 and permitted June 3, 2022. The second largest is a 9,760 square-foot business (B) building submitted by Lazar Feygin with plans filed November 2, 2015 and it has not been permitted yet.

The majority, or 40 percent of the 56,725 square feet of built space are mixed-use buildings, with walkup buildings next occupying 23 percent of the space.

The borrower

The PincusCo database currently indicates that Jacob Landau owned at least four commercial properties with 98 residential units in New York City with 102,834 square feet and a city-determined market value of $7.3 million. (Market value is typically about 50% of actual value.) The portfolio has $5.2 million in debt, borrowed from Starwood Mortgage Capital. Within the portfolio, the bulk, or 44 percent of the 102,834 square feet of built space are elevator properties, with walkup properties next occupying 41 percent of the space. The bulk, or 59 percent of the built space, is in Brooklyn, with Manhattan next at 35 percent of the space.

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