Maheshchand Ratanji signs $23M construction loan for hotel project in Flatbush

Maheshchand M. Ratanji through the entity 1045 Flatbush Avenue LLC as borrower signed a construction loan with lender State Bank of Texas valued at $23 million for the hotel development site (V1) at 1041 Flatbush Avenue in Flatbush, Brooklyn.

On the lot, there is one active new building construction project, 340795483, for a 150-unit, 59,290 square-foot hotel (R-1) building. The project was submitted by Maheshchand Ratanji and filed by Nehalkumar Gandhi with plans filed December 10, 2020 and permitted October 7, 2024.
The deal closed on April 22, 2026 and was recorded on May 5, 2026. The prior lender was State Bank of Texas which held debt that had an original loan amount of $4.3 million. The price per planned development square foot is $388 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 July 29, 2019, for $8.8 million. The signatory for Maheshchand M. Ratanji was Maheshchand M. Ratanji. The signatory for State Bank of Texas was Melody Collins .

The property

The development building in Flatbush has 14,900 square feet of built space and 30,989 square feet of additional air rights for a total buildable of 30,989 square feet according to a PincusCo analysis of city data. The parcel has frontage of 110 feet and is 117 feet deep with a total lot size of 12,753 square feet. The lot is irregular. The zoning is C4-2 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $1.4 million.

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 $6,250 in ECB penalties and $6,250 in OATH penalties in the last year.

The neighborhood

In Flatbush, The majority, or 54 percent of the 37.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 22 percent of the space. In sales, Flatbush has 2 times the average sales volume among other neighborhoods with $693.7 million in sales volume in the last two years and is the 11th highest in Brooklyn. For development, Flatbush has had very little major development activity relative to other neighborhoods.It had 416,675 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 18 commercial properties representing 51,910 square feet of the 195,166 square feet. The largest owner is Eig Brakha, followed by Maverick Management and then Maheshchand M. Ratanji.
On the tax block, there was one new building construction project filed totaling 59,290 square feet. It is a 150-unit, 59,290 square-foot hotel/dormitory/shelter (R-1) building submitted by Maheshchand Ratanji and filed by Nehalkumar Gandhi with plans filed December 10, 2020 and permitted October 7, 2024.

The majority, or 62 percent of the 195,166 square feet of built space are specialty buildings, with mixed-use buildings next occupying 19 percent of the space.

The borrower

The PincusCo database currently indicates that Maheshchand M. Ratanji owned at least 21 commercial properties with 139 residential units in New York City with 408,952 square feet and a PincusCo-determined asset value of $235.7 million. The portfolio has $221.2 million in debt, with top three lenders as State Bank of Texas, Webster Bank, and PCSB Bank respectively. Within the portfolio, the bulk, or 92 percent of the 408,952 square feet of built space are hotel properties, with H3 properties next occupying 3 percent of the space. The bulk, or 52 percent of the built space, is in Brooklyn, with Bronx next at 35 percent of the space.

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