Lay Assets signs $48M construction loan with S3 Capital in Midwood

Lay Assets through the entity 1214 Ocean Parkway LLC as borrower signed a new construction loan with lender S3 Capital through the entity S3 Re 1210 Ocean Parkway Funding LLC valued at $48 million for the two-unit development building (V1) at 1210 Ocean Parkway in Midwood, Brooklyn.
On the lot, there is one active new building construction project, B00900684, for a 28-unit, 62,989 square-foot residential (R-2) building. The project was submitted by Lay Assets and filed by Eddie Yair with plans filed November 3, 2023 and permitted July 9, 2024.
The deal closed on October 23, 2024 and was recorded on November 13, 2024. The prior lender was Valley National Bank which held debt that had an original loan amount of $12 million.
The property has 3,220 square feet of built space and 66,000 square feet of additional air rights for a total buildable of 66,000 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $727 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 April 19, 2023, for $3 million. The signatory for Lay Assets was Eddie Yair. The signatory for S3 Capital was Joshua Crane.

The property

The parcel has frontage of 160 feet and is 150 feet deep with a total lot size of 22,000 square feet. The lot is irregular. 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 $2.6 million. The most recent loan totaled $12 million and was provided by Valley National Bank on April 19, 2023.

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 $33,750 in ECB penalties in the last year.

The neighborhood

In Midwood, The majority, or 53 percent of the 19.3 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 15 percent of the space. In sales, Midwood has had very little sales volume relative to other neighborhoods with $211.1 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 314,419 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 11 commercial properties representing 66,232 square feet of the 93,181 square feet. The largest owner is Al Green, followed by Eliot Y. Ghatan and then Slope Asset Management.
On the tax block, there was one new building construction project filed totaling 62,989 square feet. It is a 28-unit, 62,989 square-foot residential (R-2) building submitted by Lay Assets and filed by Eddie Yair with plans filed November 3, 2023 and permitted July 9, 2024.

The majority, or 73 percent of the 93,181 square feet of built space are elevator buildings, with mixed-use buildings next occupying 19 percent of the space.

The borrower

The PincusCo database currently indicates that Lay Assets owned at least nine commercial properties with 261 residential units in New York City with 129,459 square feet and a city-determined market value of $32.1 million. (Market value is typically about 50% of actual value.) The portfolio has $162.3 million in debt, borrowed from Valley National Bank and Emerald Creek Capital. Within the portfolio, the bulk, or 95 percent of the 129,459 square feet of built space are elevator properties, with B1 properties next occupying 2 percent of the space. They are all located in Brooklyn.

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