Shmuel Wallerstein signs $48M refi loan with Popular Bank for 116-unit project in Flatbush

Shmuel Wallerstein through the entity Clarkson Lefferts Gardens LLC as borrower signed a refi loan with lender Popular Bank valued at $48 million for the 116-unit development (V0) at 160 Clarkson Avenue in Flatbush, Brooklyn.
The deal closed on October 28, 2022 and was recorded on November 3, 2022. The prior lender was Popular Bank which held debt that had an original loan amount of $36 million.

On the lot, there is one active new building construction project for a 116-unit, 82,422 square-foot R-2 building. The project was submitted by Ephraim Heimfield with plans filed July 16, 2019 and permitted October 17, 2020.
The owner bought the property on May 5, 2016, for $1.2 million. The signatory for Shmuel Wallerstein was Shmuel Wallerstein. The signatory for Popular Bank was Claudette Sofair. This refinances a $36 million construction loan from 2020.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $2.5 million judgment concerning a constructive trust filed on January 11, 2021, by Brian J. Berry claims he owns a portion of the Shmuel Wallerstein project at 160 Clarkson. In addition, according to city public data, the property has received four DOB violations, $7,500 in ECB penalties, and $7,500 in OATH penalties in the last year.

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 $349.3 million in sales volume in the last two years and is the 18th highest in Brooklyn. For development, Flatbush has near average amount of major developments among other neighborhoods and is the 18th highest in Brooklyn. It had 1 million 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 17 of the 30 commercial properties representing 650,793 square feet of the 876,903 square feet. The largest owner is Lilmor Management, followed by Pinnacle Group and then Joseph Popack.
On the tax block, there were two new building construction projects totaling 129,635 square feet. The largest is a 116-unit, 82,422-square-foot R-2 building developed by Ephraim Heimfield with plans filed July 16, 2019 and permitted June 10, 2020. The second largest is a 62-unit, 47,213-square-foot R-2 building developed by Tehila Spigel with plans filed December 10, 2021 and it has not been permitted yet.

The majority, or 74 percent of the 876,903 square feet of built space are elevator buildings, with walkup buildings next occupying 23 percent of the space.

Direct link to Acris document. link