K2 Real Estate Partners signs $75.2M refi loan with Dwight Capital for new building in East Flatbush

K2 Real Estate Partners through the entity 210 Clarkson Propco LLC as borrower signed a refi loan with lender Dwight Capital through the entity Dwight Mortgage Trust LLC valued at $75.2 million for the development at 210 Clarkson Avenue in East Flatbush, Brooklyn.

There is one new building construction project on the lot for a 165-unit, 134,622 square-foot residential (R-2) building. The project was submitted by K2 Real Estate Partners and filed by Andrew Klein with plans filed December 20, 2019 and permitted January 15, 2022.

The deal closed on February 2, 2024 and was recorded on February 9, 2024. The prior lender was Slate Property Group which held debt that had an original loan amount of $68.5 million.

The owner bought the property on August 13, 2019, for $20.5 million. The signatory for K2 Real Estate Partners was Robert Klein. The signatory for Dwight Capital was Adam Sassouness. This is takeout loan to pay off the $68.5 million Slate Property Group, Scale, construction loan.

The property

The parcel has frontage of 135 feet and is 200 feet deep with a total lot size of 27,000 square feet. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.6 million. The most recent loan totaled $68.5 million and was provided by Slate Property Group on November 15, 2021.

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 $4,450 in ECB penalties and $6,650 in OATH penalties in the last year.

The neighborhood

In East Flatbush, The bulk, or 32 percent of the 42.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 24 percent of the space. In sales, East Flatbush has 1.2 times the average sales volume among other neighborhoods with $343.8 million in sales volume in the last two years and is the 23rd highest in Brooklyn. For development, East Flatbush has 1.7 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Brooklyn. It had 1.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other development buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 14 of the 18 commercial properties representing 589,467 square feet of the 634,529 square feet. The largest owner is Yossel Lichtman, followed by Yechiel Weinberger and then Miller Management.
On the tax block, there were two new building construction projects totaling 196,830 square feet. The largest is a 165-unit, 134,622 square-foot residential (R-2) building submitted by K2 Real Estate Partners and filed by Andrew Klein with plans filed December 20, 2019 and permitted December 16, 2021. The second largest is a 55-unit, 62,208 square-foot residential (R-2) building submitted by Eli Karp with plans filed November 16, 2011 and permitted August 20, 2015.

The majority, or 81 percent of the 634,529 square feet of built space are elevator buildings, with walkup buildings next occupying 13 percent of the space.

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