SD Asset Management signs $8.5M refi for 27-unit condo project in Flatbush

SD Asset Management through the entity 779 Flatbush Propco LLC as borrower signed a refi loan with lenders Edward Sudit and Vladimir Sudit valued at $8.5 million for the 27-unit condominium development at 779 Flatbush Avenue in Flatbush, Brooklyn.
The deal closed on August 2, 2023 and was recorded on August 16, 2023. The prior lender was Parkview Financial which held debt that had an original loan amount of $8.5 million.
The owner bought the property on August 9, 2016, for $3.1 million. The signatory for SD Asset Management was David F. Schwarz. The signatories for Edward Sudit and Vladimir Sudit were Edward Sudit and Vladimir Sudit. The individual lenders each hold 50% of the note.

On the lot, there is one active major alteration construction project for a 27-unit, 20,296 square-foot residential (R-2) building. The project was submitted by Oren Sauberman with plans filed June 26, 2019 and permitted January 17, 2022. On the tax lot, the most recent condominium plan was filed by 779 FLATBUSH PROPCO LLC to create 27 residential units and 2 commercial units called One Lenox Condominium that has a $16.9 million sellout, according to an April 4, 2023 submission to the New York State Attorney General. The principals of the sponsor, 779 FLATBUSH PROPCO LLC, were Oleg Gandelman, Eric Safyan, David Schwarz, and Lotzi Schwartz.

The property

The lot is irregular. 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 $1.2 million. The most recent loan totaled $6.5 million and was provided by Parkview Financial on July 15, 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 $2,500 in ECB penalties and $3,100 in OATH penalties in the last year.

The neighborhood

In Flatbush, The majority, or 54 percent of the 37.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 22 percent of the space. In sales, Flatbush has near average sales volume among other neighborhoods with $387.7 million in sales volume in the last two years and is the 21st highest in Brooklyn. For development, Flatbush has 1.3 times the average amount of major developments relative to other neighborhoods and is the 14th 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 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 20 of the 32 commercial properties representing 593,957 square feet of the 666,508 square feet. The largest owner is Sentinel Real Estate, followed by Ruben Osborne and then Reginald Martin.
On the tax block, there were three new building construction projects totaling 166,312 square feet. The largest is a 132-unit, 106,549 square-foot residential (R-2) building submitted by New Empire Corp. and filed by Bentley Zhao with plans filed July 18, 2023 and it has not been permitted yet. The second largest is a 43-unit, 32,956 square-foot residential (R-2) building submitted by Marc Jacobowitz and filed by Marc Jacobowitz with plans filed March 30, 2020 and permitted January 28, 2022.

The majority, or 73 percent of the 666,508 square feet of built space are elevator buildings, with walkup buildings next occupying 14 percent of the space.

The borrower

The PincusCo database currently indicates that Sd Asset Management owned at least two commercial properties in New York City with 45,961 square feet and a city-determined market value of $8.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are office properties. The bulk, or 63 percent of the built space, is in Queens, with Brooklyn next at 37 percent of the space.

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