Joel Schwartz signs $14.2M construction loan with S3 Capital for 30-unit project in Park Slope

Joel Schwartz through the entity 63 4th Ave Brooklyn LLC as borrower signed a new construction loan with lender S3 Capital through the entity S3 Re Funding III LLC valued at $14.2 million for two mixed-use properties including the two-unit mixed-use building (K4) at 63 4th Avenue in Park Slope, Brooklyn and four-unit mixed-use building (S4) at 65 4th Avenue in Park Slope, Brooklyn.
On these lots, there is one active new building construction project for a 30-unit, 20,943 square-foot R-2 building. The project was developed by Yisroel Greenfield with plans filed June 11, 2020.
The deal closed on January 18, 2023 and was recorded on January 24, 2023. The prior lender was James McGown which held debt that had an original loan amount of $4.9 million. The two properties have 8,819 square feet of built space and 12,197 square feet of additional air rights for a total buildable of 21,009 square feet according to PincusCo analysis of city data. The loan price per built square foot is $1,615 and the price per buildable square foot is $678 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 Joel Schwartz was Joel Schwartz. The signatory for S3 Capital was Joshua Crane.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 65 4th Avenue.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes James Mc Gown, head officer and Rolf Grimsted, officer. The business entity is Brooklyn Theatrical Corp. Out of the two properties, one with a total of 8,819 square feet of built space generated revenue of $220,987 per year.

The property

The 65 4th Avenue parcel has frontage of 19 feet and is 88 feet deep with a total lot size of 1,745 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.4 million.The most recent loan totaled 0.0 and was provided by Treff & Lowy PLLC on November 1, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $20,180 in ECB penalties and $20,180 in OATH penalties in the last year.

Development

The neighborhood

In Park Slope, the bulk, or 36 percent of the 9.8 million square feet of commercial built space are walkup buildings, with mixed-use buildings next occupying 26 percent of the space. In sales, Park Slope has 1.9 times the average sales volume among other neighborhoods with $656.1 million in sales volume in the last two years and is the 8th highest in Brooklyn. For development, Park Slope has had very little major development activity relative to other neighborhoods.It had 457,697 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On the tax block of 65 4th Avenue, PincusCo has identified the owners of four of the 22 commercial properties representing 16,023 square feet of the 83,491 square feet. The largest owner is Shaindy Schwartz, followed by Roberto Alfonso and then Joel Schwartz.
On the tax block, there was one new building construction project filed totaling 20,943 square feet. It is a 30-unit, 20,943-square-foot R-2 building developed by Yisroel Greenfeld with plans filed June 11, 2020 and it has not been permitted yet.

the majority, or 87 percent of the 83,491 square feet of built space are mixed-use buildings, with walkup buildings next occupying 13 percent of the space.

The borrower

The PincusCo database currently indicates that Joel Schwartz owned at least 73 commercial properties in New York City with 863,774 square feet and a city-determined market value of $130.1 million. (Market value is typically about 50% of actual value.) The portfolio has $728.5 million in debt, with top three lenders as Citibank, BridgeCity Capital, and Starwood Capital Group respectively. Within the portfolio, the bulk, or 51 percent of the 863,774 square feet of built space are elevator properties, with walkup properties next occupying 20 percent of the space. They are all located in Brooklyn.

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