Ranco Capital signs $17.7M refi with Webster Bank for new 50-unit building in Midwood

Ranco Capital through the entity 2045 Ocean Ave LLC as borrower signed a refi loan with lender Webster Bank valued at $17.7 million for the 50-unit residential building at 2045 Ocean Avenue in Midwood, Brooklyn.
Joseph Banda submitted a new building construction project for a 50-unit, 33,913 square-foot residential (R-2) building at 2039 Ocean Avenue in Midwood, Brooklyn. The plan was filed with the New York City Department of Buildings on December 30, 2019 under job number 321596625 and was permitted on September 15, 2021. It calls for the construction of a eight-story building.
The deal closed on November 20, 2023 and was recorded on November 30, 2023. The prior lender was Parke Bank which held debt that had an original loan amount of $16.5 million.
The owner bought the property on October 4, 2019, for $2.3 million. The signatory for Ranco Capital was Max Salamon. The signatory for Webster Bank was Mary King.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Joseph Banda, head officer and David Oberlander, site manager. The business entity is 2045 Oean Ave Llc.

The property

The parcel has frontage of 80 feet and is 110 feet deep with a total lot size of 8,799 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.1 million. The most recent loan totaled $16.5 million and was provided by Parke Bank on October 26, 2021.

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 $935 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Midwood, The majority, or 53 percent of the 19.3 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 15 percent of the space. In sales, Midwood has 1.3 times the average sales volume among other neighborhoods with $470.6 million in sales volume in the last two years and is the 16th highest in Brooklyn. For development, Midwood has had very little major development activity relative to other neighborhoods.It had 562,335 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.

The block

On this tax block, PincusCo has identified the owners of six of the 15 commercial properties representing 230,845 square feet of the 460,161 square feet. The largest owner is Scharfman Organization, followed by Ranco Capital and then Philip Knoll.
There are no active new building construction projects on this tax block.

The majority, or 92 percent of the 460,161 square feet of built space are elevator buildings, with walkup buildings next occupying 6 percent of the space.

The borrower

The PincusCo database currently indicates that Ranco Capital owned at least two commercial properties with 27 residential units in New York City with 21,052 square feet and a city-determined market value of $3.7 million. (Market value is typically about 50% of actual value.) The portfolio has $28.2 million in debt, borrowed from Parke Bank and Hanover Community Bank. Within the portfolio, the bulk, or 100 percent of the 21,052 square feet of built space are elevator properties, with development properties next occupying 0 percent of the space. They are all located in Brooklyn.

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