Yoel Bernath signs $6.7M construction loan with Popular Bank for development in Borough Park

Yoel Bernath through the entity 1240 Properties 26 LLC as borrower signed a new construction loan with lender Popular Bank valued at $6.7 million for the midblock development building at 1242 39th Street in Borough Park, Brooklyn.
The deal closed on March 10, 2022 and was recorded on April 5, 2022.

The property has zero square feet of built space and 4,624 square feet of additional air rights for a total buildable of 4,624 square feet according to PincusCo analysis of city data.

There was a new building permit application filed on November 18, 2020 for a 17,387-square-foot office (B) building at this address, 1242 39th Street.
The owner bought the property on October 20, 2021, for $3 million. The signatory for Yoel Bernath was Yoel Bernath.

The property

The 1242 39th Street parcel has frontage of 20 feet and is 95 feet deep with a total lot size of 1,903 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $372,000.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 34,423 square feet. The largest is a new building project for 17,240-square-foot B building developed by Zvi Ortner with plans filed July 8, 2019 and it has not been permitted yet. The second largest is a new building project for a 17,183-square-foot B building developed by Zvi Ortner with plans filed March 17, 2020 and it has not been permitted yet.

The neighborhood

In Borough Park, the bulk, or 46 percent of the 48.6 million square feet of commercial built space are 1-4 family buildings, with specialty buildings next occupying 15 percent of the space. In sales, Borough Park has had very little sales volume relative to other neighborhoods with $140.2 million in sales volume in the last two years. For development, Borough Park has 1.3 times the average amount of major developments relative to other neighborhoods and is the 17th highest in Brooklyn. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

The majority, or 76 percent of the 164,941 square feet of built space on the tax block is 1-4 family buildings, with retail buildings next occupying 11 percent of the space.

Surrounding

Within a 400-foot radius of 1242 39th Street, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was a new building permit application filed on November 18, 2020 for a 17,387-square-foot B building at 1242 39th Street.

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