Watermark Capital signs $25M construction loan with Oak Funding for 99-unit project in East Morrisania

Watermark Capital Group through the entity 1725 Boston Rd LLC as borrower signed a new construction loan with lender Oak Funding through the entity Oak Boston LLC valued at $25 million for the mixed-use building (K2) at 1723 Boston Road in East Morrisania, Bronx.

On the lot, there is one active major alteration construction project, X01112246, for a 99-unit, 90,446 square-foot residential (R-2) building. The project was submitted by Borough Developers and filed by Shimon Kleinman with plans filed September 27, 2024 and permitted July 17, 2025.
The deal closed on July 17, 2025 and was recorded on August 4, 2025. The property has 20,600 square feet of built space and 29,633 square feet of additional air rights for a total buildable of 50,217 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $1,213 and the price per buildable square foot is $497 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 Watermark Capital Group was Meir D. Tabak . The signatory for Oak Funding was Jeremy Levart . Oak Funding borrowed $21 million from London-based OakNorth Bank, on a loan-on-loan structure.

Prior sales and revenue

The 20,600-square-foot property generated revenue of $342,990 or $17 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building in East Morrisania has 20,600 square feet of built space and 29,633 square feet of additional air rights for a total buildable of 50,217 square feet according to a PincusCo analysis of city data. The parcel has frontage of 129 feet and is 130 feet deep with a total lot size of 14,598 square feet. The lot is irregular. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.8 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $1,000,000 commercial foreclosure concerning a loan filed on June 24, 2024, by Industrial Bank against Ricardo Guzman. In addition, according to city public data, the property has received one DOB violation in the last year.

The neighborhood

In East Morrisania, The bulk, or 43 percent of the 12 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, East Morrisania has had very little sales volume relative to other neighborhoods with $127.6 million in sales volume in the last two years. For development, East Morrisania has near average amount of major developments among other neighborhoods and is the 5th highest in Bronx. It had 1.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 10 of the 19 commercial properties representing 497,606 square feet of the 727,834 square feet. The largest owner is Mbd Community Housing Corp, followed by Morrisania Revitalization Corp and then Peter J. Volandes.
On the tax block, there was one new building construction project filed totaling 34,959 square feet. It is a 73-unit, 34,959 square-foot residential (R-2) building submitted by Grun Group and filed by Yonah Grunhut with plans filed May 15, 2025 and it has not been permitted yet.

The majority, or 71 percent of the 727,834 square feet of built space are elevator buildings, with walkup buildings next occupying 15 percent of the space.

The borrower

The PincusCo database currently indicates that Watermark Capital Group owned at least 140 commercial properties with 1,563 residential units in New York City with 1,664,251 square feet and a city-determined market value of $324.9 million. (Market value is typically about 50% of actual value.) The portfolio has $298.3 million in debt, with top three lenders as Slate Property Group, BridgeCity Capital, and QuadReal Property Group respectively. Within the portfolio, the bulk, or 50 percent of the 1,664,251 square feet of built space are walkup properties, with elevator properties next occupying 15 percent of the space. The bulk, or 89 percent of the built space, is in Brooklyn, with Queens next at 6 percent of the space.

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