Steven Hurwitz pays $6.8M for 19-unit dev site in Crown Heights, gets $13.7 construction loan from Popular Bank

Steven Hurwitz through the entity 458 St Marks LLC paid $6.8 million to David Gross through the entity Claysson Marks Realty Corp. for the development site composed of the industrial building (G7) at 452 St Marks Avenue in Crown Heights, Brooklyn, industrial building (G7) at 458 St Marks Avenue in Crown Heights, Brooklyn, and industrial building (G7) at St Marks Avenue in Crown Heights, Brooklyn.
On these lots, there is one active new building construction project for a 19-unit, 19,811 square-foot R-2 building. The project was developed by Steven Hurwitz with plans filed April 15, 2022 and it has not been permitted yet.
The deal closed on December 20, 2022 and was recorded on January 12, 2023. The three properties have zero square feet of built space and 20,250 square feet of additional air rights for a total buildable of 20,250 square feet according to PincusCo analysis of city data. The sale price per buildable square foot is $333 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 David Gross was David Gross. The signatory for Steven Hurwitz was Steven Hurwitz. Steven Hurwitz is associated with CAVU Property Group.
To finance construction, Steven Hurwitz through the entity 458 St Marks LLC as borrower obtained a construction loan from lender Popular Bank valued at $13.7 million.

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 452 St Marks Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Steven Hurwitz had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller David Gross had not purchased any other properties and had not sold any properties over the same time period.

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 not received any significant violations in the last year.

The neighborhood

In Crown Heights, the bulk, or 38 percent of the 46.5 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 36 percent of the space. In sales, Crown Heights has 1.5 times the average sales volume among other neighborhoods with $530.3 million in sales volume in the last two years and is the 12th highest in Brooklyn. For development, Crown Heights has 2.7 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Brooklyn. It had 2.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On the tax block of 452 St Marks Avenue, PincusCo has identified the owners of 22 of the 33 commercial properties representing 187,907 square feet of the 238,106 square feet. The largest owner is Rudolph Phillip, followed by MHANY Management and then Laura Hobgood.
On the tax block, there was one new building construction project filed totaling 19,811 square feet. It is a 19-unit, 19,811-square-foot R-2 building developed by Steven Hurwitz with plans filed April 15, 2022 and permitted May 26, 2022.

The majority, or 86 percent of the 238,106 square feet of built space are walkup buildings, with elevator buildings next occupying 11 percent of the space.

The buyer

The PincusCo database currently indicates that Steven Hurwitz owned at least one commercial property in New York City with 0.0 square feet and a city-determined market value of 0.0. (Market value is typically about 50% of actual value.) The portfolio has $16.7 million in debt, borrowed from City National Bank. The portfolio consists of at least a single G7 property.

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