An 11-unit condominium development in Park Slope has secured a $9.5 million construction loan, and the terms read like a snapshot of where Brooklyn construction lending stands right now. The deal carries a 7.75% interest rate, a two-year term and no prepayment penalty. It also includes an unusual feature: money set aside up front so materials can be bought before the first wall goes up.
Peter Cohen of Leviathan Capital arranged the financing, New York Real Estate Journal reported on Wednesday. According to the publication, the loan carries a 7.25% floor beneath that 7.75% rate, along with a 24-month term. It also comes with an origination fee under 1%.
Cohen is a Senior Capital Markets Advisor at Leviathan Capital, according to the firm's website. His bio says he specializes in new originations such as ground-up construction, bridge and permanent financing.
Deposits Funded Before the Ground Breaks
The most distinctive piece of the package is how the money gets used early. The journal's report says Cohen also structured pre-funded deposits to facilitate early procurement of critical hard-cost materials. The stated aim is to support post-closing construction progress and execution certainty.
The report does not name the borrower, the developer, the lender or the property's address. It also does not say what the total project costs, how large the building will be or when construction is expected to wrap up. Those details remain unpublished for now.
A Busy Slope in a Mixed Market
The financing lands in a Brooklyn condo market sending mixed signals. A CityRealty analysis of northwest Brooklyn found the median condo sale price up 2% in 2026, from $1.175 million to $1.2 million. Average price per square foot edged up from about $1,359 to $1,384.
Park Slope itself sits near the center of the action. CityRealty said Williamsburg and Park Slope were the most active Brooklyn condo markets in 2026. The same analysis found closings down through the first half of the year compared with 2025, even as signed contracts climbed 15%.
How Other Condo Loans Are Shaking Out
Other recent deals offer a few points of comparison, though they are different projects with different structures. Ariel Property Advisors recently closed three private-lender loans totaling more than $17 million in Brooklyn and Queens, ConnectCRE reported. One was a $6.85 million non-recourse loan at 75% loan-to-cost for an eight-unit development in Long Island City.
Another was a $5.5 million, two-year interest-only loan for a 24-unit condo conversion in Richmond Hill, priced at SOFR plus 5.25%. Ariel's Matthew Dzbanek said, “Condo construction is on fire in New York City right now, especially for projects producing affordable units.”
Leviathan has also been active in Brooklyn lending. Bldup reported that the firm's Max Goveia closed a $7,925,000 acquisition and rehab loan for a project planned to become four luxury residential units over a retail unit. That loan covered 75% of total project costs and ran 24 months at a floating, interest-only rate of Prime plus 1%.
