Shabsey Oberlander signs $62.5M refi for nursing home in Flatbush

Nursing home operator Shabsey Oberlander through the entity Dithold Associates, LLC as borrower signed a refi loan with lender Popular Bank valued at $62.5 million for two nursing home properties including the 200-unit specialty building (I6) at 2107 Ditmas Avenue in Flatbush, Brooklyn and specialty building (I6) at 464 East 22nd Street in Flatbush, Brooklyn.
The deal closed on July 20, 2022 and was recorded on July 26, 2022. The prior lender was Popular Bank which held debt that had an original loan amount of $35.9 million. The two properties have 166,628 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $375 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 Shabsey Oberlander was Shabsey Oberlander. This is the Ditmas Park Rehabilitation Center.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 2107 Ditmas Avenue.

The property

The 2107 Ditmas Avenue parcel has frontage of 218 feet and is 150 feet deep with a total lot size of 25,300 square feet. 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 $13.3 million.

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 three DOB violations, $3,750 in ECB penalties, and $12,170 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the two buildings received an initial certificate of occupancy in the last ten years. On these lots, there is one active new building construction project for a 4,434-square-foot I-2 building. The project was developed by Shabsey Oberlander with plans filed October 6, 2014 and permitted June 27, 2017.

The neighborhood

In Flatbush, the majority, or 55 percent of the 37.9 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Flatbush has near average sales volume among other neighborhoods with $304.8 million in sales volume in the last two years and is the 18th highest in Brooklyn. For development, Flatbush has 1.5 times the average amount of major developments relative to other neighborhoods and is the 12th highest in Brooklyn. It had 1.6 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 the tax block of 2107 Ditmas Avenue, PincusCo has identified the owners of 10 of the 13 commercial properties representing 280,869 square feet of the 488,723 square feet. The largest owner is Parkway Realty Associates, followed by Shamco Management and then Jacob Hager. There is one active new building construction project totaling 4,434 square feet. It is a 4,434-square-foot I-2 building developed by Shabsey Oberlander with plans filed October 6, 2014 and permitted June 27, 2017.

The majority, or 50 percent of the 488,723 square feet of built space are elevator buildings, with specialty buildings next occupying 34 percent of the space.

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