Lazer and Esther Herman obtain $18M construction loan for 18-unit project in Bedford Stuyvesant

Lazer Herman and Esther Herman through the entity 211 Nostrand Avenue LLC as borrower signed a new construction loan with lender Popular Bank valued at $18 million for the specialty building (Z9) at 211 Nostrand Avenue in Bedford Stuyvesant, Brooklyn.
On the lot, there is one active new building construction project, B00717487, for an 18-unit, 15,330 square-foot residential (R-2) building. The project was submitted by Issac Lebo with plans filed April 14, 2022 and permitted December 5, 2023.
The deal closed on September 19, 2024 and was recorded on September 25, 2024. The prior lender was Popular Bank which held debt that had an original loan amount of $3.9 million.The property has 300 square feet of built space and 16,372 square feet of additional air rights for a total buildable of 16,650 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $1,081 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 August 24, 2022, for $4 million. The signatory for Lazer Herman and Esther Herman was Lazer Herman. The signatory for Popular Bank was Candice Biscocho.

The property

The specialty building in Bedford Stuyvesant has 300 square feet of built space and 16,372 square feet of additional air rights for a total buildable of 16,650 square feet according to a PincusCo analysis of city data. The parcel has frontage of 55 feet and is 100 feet deep with a total lot size of 5,550 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 $113,000.

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 not received any significant violations in the last year.

The neighborhood

In Bedford Stuyvesant, The bulk, or 35 percent of the 54.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Bedford Stuyvesant has the 7th highest sale turnover among other neighborhoods in the city with $1.1 billion in sales volume in the last two years. For development, Bedford Stuyvesant has 2.5 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Brooklyn. It had 2.8 million 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 this tax block, PincusCo has identified the owners of eight of the 12 commercial properties representing 68,426 square feet of the 82,927 square feet. The largest owner is L+M Development Partners, followed by Jayde Okunubi and then Mike Silber.
On the tax block, there were two new building construction projects totaling 20,139 square feet. The largest is a 18-unit, 15,330 square-foot residential (R-2) building submitted by Issac Lebo with plans filed April 14, 2022 and permitted December 5, 2023. The second largest is a 37-unit, 4,809 square-foot residential (R-2) building submitted by Rona Reodica with plans filed May 1, 2020 and permitted September 12, 2023.

The majority, or 82 percent of the 82,927 square feet of built space are walkup buildings, with retail buildings next occupying 9 percent of the space.

The borrower

The PincusCo database currently indicates that Esther Herman owned at least five commercial properties with 38 residential units in New York City with 30,860 square feet and a city-determined market value of $4.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 73 percent of the 30,860 square feet of built space are walkup properties, with elevator properties next occupying 26 percent of the space. They are all located in Brooklyn.

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