Zelig Weiss signs $24.4M refi for 64-unit rental in Bedford Stuyvesant

Zelig Weiss through the entity Marcy Hart LLC as borrower signed a refi loan with lender Valley National Bank valued at $24.4 million for the 64-unit residential elevator building (D1) at 633 Marcy Avenue in Bedford Stuyvesant, Brooklyn.
The deal closed on June 7, 2023 and was recorded on June 12, 2023. The prior lender was Valley National Bank which held debt that had an original loan amount of $22.5 million.
The property has 61,699 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $394 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 Zelig Weiss was Zelig Weiss. The signatory for Valley National Bank was Harris Schornstein.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Josif Weisz, head officer and Zelig Weiss, officer. The business entity is Marcy Hart LLC. The 61,699-square-foot property generated revenue of $2.1 million or $35 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 64 residential units in Bedford Stuyvesant has 61,699 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 9,999 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The property has a 421A exemption that started in 2019 and expires in 2055. The city-designated market value for the property in 2022 is $10.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $8,750 in ECB penalties, 16 housing violations, $8,800 in OATH penalties, and two housing litigations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on February 28, 2019. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of 10 of the 13 commercial properties representing 160,943 square feet of the 172,707 square feet. The largest owner is Sharon T. Rubin, followed by Moses Mizrahi and then Marc Goodman.
On the tax block, there was one new building construction project filed totaling 7,408 square feet. It is a 10-unit, 7,408 square-foot residential (R-2) building submitted by Mehmet Aksay with plans filed April 19, 2019 and it has not been permitted yet.

The majority, or 55 percent of the 172,707 square feet of built space are elevator buildings, with walkup buildings next occupying 42 percent of the space.

The borrower

The PincusCo database currently indicates that Zelig Weiss owned at least four commercial properties with 223 residential units in New York City with 192,358 square feet and a city-determined market value of $22.4 million. (Market value is typically about 50% of actual value.) The portfolio has $152 million in debt, with top three lenders as Starwood Mortgage Capital, Aviv Group, and Be-Aviv respectively. Within the portfolio, the bulk, or 92 percent of the 192,358 square feet of built space are elevator properties, with walkup properties next occupying 8 percent of the space. They are all located in Brooklyn.

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