RCH Capital buys $9.8M note secured by 58-unit rental in Flatbush, Brooklyn

RCH Capital through the entity Rch/Kcp 2021 Fund LLC bought a note with an original principal of $9.8 million from Webster Bank secured by Congregation and Gmach Zichron Shlomo’s 58-unit residential elevator building (D1) at 20 Crooke Avenue in Flatbush, Brooklyn.
The deal closed on September 20, 2024 and was recorded on October 18, 2024. The prior lender was Webster Bank which held debt that had an original loan amount of $9.8 million. The property has 55,458 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $zero 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 Congregation and Gmach Zichron Shlomo for the original loan was Yaakov A. Einhorn.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Yaakov Einhorn, head officer and Shulim Vallach, agent. The business entities are Cong & Gmach Zichron Schlomo and Cong & Gmach Zichron Schlomo.

The property

The residential elevator building with 58 residential units in Flatbush has 55,458 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 90 feet and is 142 feet deep with a total lot size of 12,789 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 $3 million. The most recent loan totaled $9.8 million and was provided by Sterling National Bank on July 27, 2021. The property has 58 rent regulated units according to city tax records from 2023.

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 two DOB violations, $625 in ECB penalties, 105 housing violations, $775 in OATH penalties, and three housing litigations 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 block

On this tax block, PincusCo has identified the owners of six of the eight commercial properties representing 286,585 square feet of the 382,185 square feet. The largest owner is Meridian Properties, followed by Sam Farkas and then Congregation And Gemach, Zichron Schlomo.
There are no active new building construction projects on this tax block.

The majority, or 81 percent of the 382,185 square feet of built space are elevator buildings, with walkup buildings next occupying 19 percent of the space.

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