Joel Schwartz signs $18.5M construction loan with Central Capital Inv for 51-unit project in Cypress Hills

Joel Schwartz through the entity 2795 Fulton St LLC as borrower signed a new construction loan with lender Central Capital Inv through the entity Central Capital Series 1 LLC valued at $18.5 million for the 51-unit project (V1) at 2795 Fulton Street in Cypress Hills, Brooklyn.
On the lot, there is one active new building construction project, 321566934, for a 51-unit, 35,905-square-foot residential (R-2) building. The project was submitted by Itzchak Zivari with plans filed August 2, 2017 and permitted August 20, 2024.
The deal closed on October 10, 2024 and was recorded on October 18, 2024. The prior lender was Skybrook Capital which held debt that had an original loan amount of $2.1 million.The property has a total buildable of 30,000 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $616 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 10, 2023, for $2.6 million. The signatory for Joel Schwartz was Joel Schwartz. The signatory for Central Capital Inv was Vincent Martucci.

The property

The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 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 $664,000.

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 $5,000 in ECB penalties in the last year.

The neighborhood

In Cypress Hills, The bulk, or 24 percent of the 8.6 million square feet of commercial built space are mixed-use buildings, with specialty buildings next occupying 20 percent of the space. In sales, Cypress Hills has had very little sales volume relative to other neighborhoods with $93.3 million in sales volume in the last two years. For development, Cypress Hills has had very little major development activity relative to other neighborhoods.It had 595,405 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.

The block

On this tax block, PincusCo has identified the owners of two of the four commercial properties representing 43,572 square feet of the 73,078 square feet. The two identified owners are Larry Malitzky and Daniel Group.
On the tax block, there was one new building construction project filed totaling 34,400 square feet. It is a 35-unit, 34,400 square-foot residential (R-2) building submitted by Itzchak Zivari with plans filed August 2, 2017 and permitted August 20, 2024.

The majority, or 60 percent of the 73,078 square feet of built space are elevator buildings, with walkup buildings next occupying 40 percent of the space.

The borrower

The PincusCo database currently indicates that Joel Schwartz owned at least 92 commercial properties with 1,450 residential units in New York City with 1,055,026 square feet and a city-determined market value of $179.7 million. (Market value is typically about 50% of actual value.) The portfolio has $1.2 billion in debt, with top three lenders as BridgeCity Capital, Citibank, and Deutsche Bank respectively. Within the portfolio, the bulk, or 58 percent of the 1,055,026 square feet of built space are elevator properties, with walkup properties next occupying 16 percent of the space. They are all located in Brooklyn.

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