Ridge Street Capital funds $2.1175 million DSCR loan for four-units

Brooklyn, NY Ridge Street Capital has funded a $2,117,500 DSCR purchase loan on a four-unit brownstone at 535 Washington Ave. in Clinton Hill. The loan closed October 15.

The financing is a 30-year fixed, fully amortizing loan at 7.125%, written at 55% loan-to-value against an appraised value of $3.85 million. The property underwrites at a 1.34x debt service coverage ratio on the appraiser’s market rent schedule of $22,900 per month across the four units.

The structure turns on unit count.

“Unit count is an underwriting boundary, not a property detail. At four units the file stays residential: the valuation leads on sales comparison and the loan amortizes over 30 years. At five it becomes commercial, where value is driven by net operating income against a cap rate and the amortization shortens. Same rent roll, higher annual debt service, and a coverage ratio that can land on the wrong side of the line,” said Zach Cohen, founder and CEO of Ridge Street Capital. “At Brooklyn valuations, that boundary is frequently the whole deal.”

The transaction ran 62 days from contract on August 14 to closing on October 15, through New York’s attorney-reviewed closing process in which buyer, seller and lender are each separately represented. The borrower’s rate lock expired October 19. The loan closed four days inside that window, preserving the 7.125% rate while market rates moved during processing.

“They call New York the Attorney State, because buyer, seller and lender are each separately represented,” said Cohen. “In practice that means every answer gets worked for, across three legal teams carrying their own caseloads. You close these deals by staying on the phone.”

The property was first listed at $4.485 million in September 2025 and went to contract at $3.85 million last August. The purchase price matched the appraised value, and the appraisal’s three approaches converged within $20,000: sales comparison at $3.85 million, income at $3.87 million and cost at $3,859,858.

The building is a five-story attached brownstone built in 1930, with 4,395 s/f across one three-bedroom duplex and three two-bedroom floor-through units. The C train stop at Clinton and Washington Aves. is under 500 ft. away.