Lay Assets signs $25.8M construction loan with Valley for 75-unit project in Midwood

Lay Assets through the entity 1775 Coney Island LLC as borrower signed a new construction loan with lender Valley National Bank valued at $25.8 million for the midblock 75-unit development at 1769 Coney Island Avenue in Midwood, Brooklyn.
The deal closed on April 19, 2022 and was recorded on May 25, 2022. The prior lender was Bank Leumi which held debt that had an original loan amount of $4.8 million. The property has 1,760 square feet of built space and 58,200 square feet of additional air rights for a total buildable of 60,000 square feet according to PincusCo analysis of city data. The loan price per built square foot is $14,659 and the price per buildable square foot is $430 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 November 17, 2020, for $4.5 million. The signatory for Lay Assets was Eddie Yair. Eddie Yair is the COO of Lay Assets.

The property

The 1769 Coney Island Avenue parcel has frontage of 150 feet and is 100 feet deep with a total lot size of 15,000 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.5 million.

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 $7,500 in ECB penalties and $8,700 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 75-unit, 59,559-square-foot R-2 building. The project was developed by Eddie Yair with plans filed January 12, 2021 and permitted March 3, 2022.

The neighborhood

In Midwood, the bulk, or 44 percent of the 44.6 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 34 percent of the space. In sales, Midwood has had very little sales volume relative to other neighborhoods with $141.4 million in sales volume in the last two years. For development, Midwood has had very little major development activity relative to other neighborhoods.It had 335,909 square feet of commercial and multi-family construction under development in the last two years, which represents 0.75 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 27 commercial properties representing 105,568 square feet of the 198,570 square feet. The largest owner is Allstate Realty Associates, followed by Lay Assets and then Antonio Pastor. There is one active new building construction project totaling 59,559 square feet. It is a 75-unit, 59,559-square-foot R-2 building developed by Eddie Yair with plans filed January 12, 2021 and permitted March 3, 2022.

The majority, or 32 percent of the 266,337 square feet of built space are residential elevator buildings, with 1-4 family buildings next occupying 27 percent of the space.

Surrounding

Within a 400-foot radius of 1769 Coney Island Avenue, PincusCo identified two commercial real estate items of interests occurred over the past 24 months.
Of those two items, two were loans above $5 million totaling $22.3 million. The most recent of the two was Allstate Realty Associates which borrowed $9.8 million from Sterling National Bank secured by the 85,584-square-foot, 83-unit rental (D1) on 1122 Avenue N on November 4, 2021.

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