Mendel Greisman signs $13.3M construction loan with S3 Capital in Crown Heights

Mendel Greisman through the entity 274 Sullivan Pl. LLC as borrower signed a new construction loan with lender S3 Capital through the entity S3 Re Funding III LLC valued at $13.3 million for the development 268 Sullivan Place in Crown Heights, Brooklyn, two-unit 1-4 family building (B1) at 270 Sullivan Place in Crown Heights, Brooklyn, and two-unit 1-4 family building (B1) at 274 Sullivan Place in Crown Heights, Brooklyn.
On these lots, there is one active new building construction project, B00817250, for a 37-unit, 28,924 square-foot residential (R-2) building. The project was submitted by Mendel Greisman and filed by Mendel Greisman with plans filed January 26, 2023 and permitted March 21, 2024.
The deal closed on July 31, 2024 and was recorded on August 30, 2024. The prior lender was Citizens Bank which held debt that had an original loan amount of $960,000.The three properties have 7,272 square feet of built space and 18,000 square feet of additional air rights for a total buildable of 25,273 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $1,828 and the price per buildable square foot is $526 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 signatory for Mendel Greisman was Menachem Mendel Greisman. The signatory for S3 Capital was Joshua Crane.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 268 Sullivan Place.

The property

The 1-4 family building with 2 residential units in Crown Heights has 7,272 square feet of built space and 18,000 square feet of additional air rights for a total buildable of 25,273 square feet according to a PincusCo analysis of city data. The parcel has frontage of 24 feet and is 100 feet deep with a total lot size of 2,449 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 $1.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $350 in OATH penalties in the last year.

Development

The block

On the tax block of 268 Sullivan Place, PincusCo has identified the owners of three of the six commercial properties representing 159,859 square feet of the 190,141 square feet. The largest owner is Boris Evelkin, followed by Peter Weinberg and then Mendel Gold.
On the tax block, there were two new building construction projects totaling 88,222 square feet. The largest is a 60-unit, 59,298 square-foot residential (R-2) building submitted by Elliot Moskowitz and filed by Elliot Moskowitz with plans filed October 10, 2017 and permitted April 1, 2019. The second largest is a 37-unit, 28,924 square-foot residential (R-2) building submitted by Mendel Greisman and filed by Mendel Greisman with plans filed January 26, 2023 and permitted February 29, 2024.

The majority, or 84 percent of the 190,141 square feet of built space are elevator buildings, with mixed-use buildings next occupying 10 percent of the space.

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