Prospect Developers II signs $62.6M construction loan with private lender for 49-unit dev site in East Williamsburg

Prospect Developers II through the entity Upton Metropolitan, LLC as borrower signed a new construction loan with lender Metropolitan Corner Bushwick Lender LLC valued at $62.6 million for the 49-unit development site at 824 Metropolitan Avenue in East Williamsburg, Brooklyn.
The deal closed on May 16, 2022 and was recorded on June 7, 2022.
The signatory for Prospect Developers II was Konstantin Gubareff. Konstantin Gubareff is managing director of Prospect Developers II.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $1,040 in OATH penalties in the last year.

Development

On these lots, there is a new building project for a 49-unit, 44,565-square-foot R-2 building developed by Konstantin Gubareff with plans filed February 2, 2022 and it has not been permitted yet.

The neighborhood

In East Williamsburg, the majority, or 58 percent of the 17.8 million square feet of commercial built space are industrial buildings, with residential walkup buildings next occupying 9 percent of the space. In sales, East Williamsburg has 1.2 times the average sales volume among other neighborhoods with $335.5 million in sales volume in the last two years and is the 12th highest in Brooklyn. For development, East Williamsburg has 1.4 times the average amount of major developments relative to other neighborhoods and is the 15th highest in Brooklyn. It had 1.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On the tax block of 832 Metropolitan Avenue, PincusCo has identified the owners of 11 of the 30 commercial properties representing 65,640 square feet of the 137,004 square feet. The largest owner is Anthony Gurino, followed by Shaindy Schwartz and then Joel Schwartz. There are four active new building construction projects totaling 89,557 square feet. The largest is a 27-unit, 19,910-square-foot R-2 building developed by Moshe Abraham with plans filed February 18, 2016 and it has not been permitted yet.The second largest is a 22-unit, 14,982-square-foot R-2 building developed by Anthony Losquadro with plans filed December 23, 2016 and permitted June 8, 2021.

the majority, or 51 percent of the 171,222 square feet of built space are residential walkup buildings, with 1-4 family buildings next occupying 18 percent of the space.

Surrounding

Within a 400-foot radius of 832 Metropolitan Avenue, Pincusco identified eight commercial real estate items of interests occurred over the past 24 months.
Of those eight items, five were in new building development. There were three new building permit applications and two new building permits. The most recent of these five items was a permit on May 31, 2022 for a 12,135-square-foot B building at 2 Bushwick Avenue.
Of those eight items, one was for major renovation including a certificate of occupancy change. It was an initial temporary certificate of occupancy issued on August 18, 2020 for the $4 million renovation of zero-square-foot R-2 building with 32 residential units at 850 Metropolitan Avenue.
Of those eight items, two were loans above $5 million totaling $30.8 million. The most recent of the two was Blank Property Group which borrowed $25.3 million from RCG Longview and CenterSquare Investment Management secured by the 7,786-square-foot, three-unit three-family building (C0) on 31 Orient Avenue and 11 other properties on February 22, 2022.

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