Yossel Lichtman signs $35.5M construction loan for 131-unit project in Flatbush

Yossel Lichtman through the entity 425 Coney Island Realty LLC as borrower signed a new construction loan with lender Valley National Bank valued at $35.5 million for the 131-unit project at 425 Coney Island Avenue in Flatbush, Brooklyn.
On these lots, there is one active new building construction project for a 131-unit, 88,979 square-foot R-2 building. The project was submitted by Yossel Lichtman with plans filed January 13, 2022 and permitted April 20, 2023.

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The deal closed on September 29, 2022 and was recorded on October 13, 2023. The prior lender was Bank of Princeton which held debt that had an original loan amount of $14.5 million.
The two properties have 19,500 square feet of built space and 65,874 square feet of additional air rights for a total buildable of 85,440 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $415 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 Yossel Lichtman was Yossel Lichtman. The signatory for Valley National Bank was Jeffrey Puchin.

The property

The parcel has frontage of 200 feet and is 105 feet deep with a total lot size of 19,566 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 $2.1 million. The most recent loan totaled $14.5 million and was provided by Valley National Bank on September 16, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $33,200 in OATH penalties in the last year.

The neighborhood

In Flatbush, The majority, or 54 percent of the 37.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 22 percent of the space. In sales, Flatbush has near average sales volume among other neighborhoods with $389.2 million in sales volume in the last two years and is the 20th highest in Brooklyn. For development, Flatbush has 1.3 times the average amount of major developments relative to other neighborhoods and is the 13th highest in Brooklyn. It had 1.3 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 425 Coney Island Avenue, PincusCo has identified the owners of seven of the 12 commercial properties representing 63,712 square feet of the 81,999 square feet. The largest owner is Parkway Realty Associates, followed by Nur Hoque and then Jacob Zimmerman.
On the tax block, there was one new building construction project filed totaling 88,979 square feet. It is a 131-unit, 88,979 square-foot residential (R-2) building submitted by Yossel Lichtman with plans filed January 13, 2022 and permitted April 20, 2023.

The majority, or 49 percent of the 81,999 square feet of built space are walkup buildings, with mixed-use buildings next occupying 27 percent of the space.

The borrower

The PincusCo database currently indicates that Yossel Lichtman owned at least 31 commercial properties with 238 residential units in New York City with 190,854 square feet and a city-determined market value of $39.8 million. (Market value is typically about 50% of actual value.) The portfolio has $65.8 million in debt, with top three lenders as Valley National Bank, Bank of Princeton, and Customers Bank respectively. Within the portfolio, the bulk, or 82 percent of the 190,854 square feet of built space are walkup properties, with elevator properties next occupying 13 percent of the space. The bulk, or 94 percent of the built space, is in Brooklyn, with Queens next at 6 percent of the space.

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