Michael Shapiro signs $11.5M construction loan with S3 Capital for 30-unit project in Sheepshead Bay

Michael Shapiro through the entity 2518 Ocean Ave Tower LLC as borrower signed a new construction loan with lender S3 Capital through the entity S3 Re Funding II LLC valued at $11.5 million for two properties with two residential units including the development building (V1) at 2518 Ocean Avenue in Sheepshead Bay, Brooklyn.

On these lots, there is one active new building construction project for a 30-unit, 23,504 square-foot R-2 building. The project was submitted by Alex Finkelshteyn with plans filed October 18, 2022 and it has not been permitted yet.

The deal closed on January 10, 2024 and was recorded on January 26, 2024. The two properties have total buildable of 23,632 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $486 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 Michael Shapiro was Michael Shapiro.

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 three DOB violations and $150 in OATH penalties in the last year.

The neighborhood

In Sheepshead Bay, The bulk, or 43 percent of the 26.5 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Sheepshead Bay has 1.5 times the average sales volume among other neighborhoods with $442.4 million in sales volume in the last two years and is the 16th highest in Brooklyn. For development, Sheepshead Bay has near average amount of major developments among other neighborhoods and is the 18th highest in Brooklyn. It had 864,646 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other development buildings in the past 12 months.

The block

On the tax block of 2518 Ocean Avenue, PincusCo has identified the owners of one of the 16 commercial properties representing 34,000 square feet of the 235,611 square feet. The identified owner is Albert Srour.
On the tax block, there were two new building construction projects totaling 47,025 square feet. The largest is a 25-unit, 23,521 square-foot residential (R-2) building submitted by Ying Fu with plans filed June 27, 2019 and it has not been permitted yet. The second largest is a 30-unit, 23,504 square-foot residential (R-2) building submitted by Alex Finkelshteyn with plans filed October 18, 2022 and it has not been permitted yet.

The majority, or 55 percent of the 235,611 square feet of built space are specialty buildings, with walkup buildings next occupying 29 percent of the space.

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