Red Oak Capital Holdings, LLC, a leading provider of private capital solutions for commercial real estate, has provided a $2.8-million bridge loan for the renovation and stabilization of 551 Albany Apartments, an eight-unit multifamily property located in the East Flatbush neighborhood of Brooklyn.
Provided under Red Oak’s Opportunistic Bridge Loan Program, the non-recourse, interest-only loan is structured with a 1-year initial term and a loan-to-stabilized value (LTSV) of 64.20%. The transaction was originated by Red Oak Regional Manager Stratos Athanassiades, underwritten by Thomas Gorski, and administered by James Myatt.
The sponsor is a partnership of seasoned high-net-worth investors that acquired the property in March 2023. Since acquisition, the group has invested nearly $1 million in substantial renovations—including construction of a new superstructure—with final completion expected by December 2025 and full stabilization anticipated by February 2026.
“This project reflects the kind of thoughtful, design-forward investment we’re seeing more of in dense urban markets,” said Athanassiades. “The sponsor is delivering a boutique-scale asset that’s nearly rebuilt from the ground up within a submarket with consistently strong demand and minimal new supply. It’s a compelling setup for a fast and durable lease-up.”
Located at 551 Albany Avenue, the property includes eight market-rate units within a four-story walk-up plus penthouse configuration. The unit mix includes five one-bedrooms, two two-bedroom duplexes with private roof access, and one penthouse. Originally built in 1899, the building is undergoing a complete overhaul while retaining its historic character and maximizing the appeal of boutique multifamily product in a stable Brooklyn neighborhood.
Remaining capital improvements include drywall and flooring installation, new finishes and appliances, updated LED lighting, painting, plumbing and window replacements. Exterior upgrades include brick and stucco finishing, balcony work, fencing, roofing, and final inspections.
“Brooklyn remains one of the most competitive and resilient rental markets in the country,” said Gary Bechtel, CEO of Red Oak Capital Holdings. “With limited new supply, continued demand, and a strong unit mix, this project is well positioned to deliver stable income and long-term value creation for ownership.”
“With just eight units and a prime location in one of Brooklyn’s most stable neighborhoods, this property is exceptionally well positioned to lease quickly and perform over the long term,” said Gary Bechtel, Red Oak’s CEO. “Rents in the submarket have grown nearly 8% annually over the past five years, and we believe this asset’s upgraded unit mix, boutique scale, and features will capture that momentum and drive strong performance.”
The property benefits from its location in the heart of East Flatbush—a densely populated, transit-connected neighborhood with enduring rental demand. The Brooklyn multifamily market has recorded occupancy above 95% for more than a decade, with new construction representing just 0.2% of inventory.
