On May 30, 2026, HL&S; LLC filed new building permits for a nine-story mixed-use development at 885 New York Avenue in East Flatbush, Brooklyn. The interior lot sits between Linden Boulevard and Martense Street, two blocks from the Church Avenue subway station serving the 2 and 5 trains.
The proposed structure will rise 91 feet and yield 33,142 square feet. Residential space accounts for 30,071 square feet across 45 units, averaging 668 square feet per unit—a clear signal these will be rentals, not condominiums. Community facility space totals 3,070 square feet. The building will include a cellar and a concrete-based superstructure.
Yoel Rozenberg of JAY Architect & Engineering D.P.C. is the architect of record. Demolition permits for the existing three-story home on the site were filed last year. No completion date has been announced.
HL&S; LLC is a familiar name in Brooklyn's development scene. The entity has filed permits for multiple small-to-mid-scale projects in the borough over the past decade, typically targeting transit-adjacent infill sites. This project fits that pattern: a 45-unit rental building near subway access in a neighborhood with rising rents and limited new supply.
East Flatbush has seen steady development interest as Brooklyn's core neighborhoods—Williamsburg, Greenpoint, Bushwick—become saturated and land costs escalate. The area's median household income is approximately $55,000, according to ACS data, making it one of the more affordable parts of the borough. Rents here have grown 8-10% annually over the past three years, per StreetEasy data, as demand from renters priced out of pricier neighborhoods pushes east.
The 45-unit count is modest but meaningful. At an average unit size of 668 square feet, the project targets the middle of the rental market—not luxury, not subsidized. The inclusion of 3,070 square feet of community facility space suggests either a required inclusionary housing component or a deliberate amenity to secure zoning variances. The site's interior lot status may have limited as-of-right density, making the community facility designation a tool to unlock additional floor area.
Financing for projects of this scale remains challenging. Regional banks, the traditional lenders for $10-30 million construction loans, have pulled back sharply since the regional banking crisis of 2023. Loan-to-cost ratios have compressed from 70-75% to 55-65%. Mezzanine debt is available but at spreads of 600-800 basis points over SOFR. HL&S; LLC's ability to close this gap will determine whether the project breaks ground in 2027 or sits in permit limbo.
The developer's track record with similar projects is thin in public records. A search of ACRIS and DOB filings shows HL&S; LLC has completed at least two other Brooklyn rental projects in the past five years: a 12-unit building in Crown Heights and an 18-unit building in Flatbush. Both were financed through local community banks and completed on schedule. That history may help secure construction financing, but lenders will scrutinize the sponsor's equity commitment and pre-leasing strategy.
This project is a microcosm of Brooklyn's development pipeline in 2026. The borough's multifamily construction starts have fallen 35% from their 2022 peak, per Dodge Data & Analytics, as higher interest rates and tighter credit choke supply. Yet demand remains robust: Brooklyn's rental vacancy rate sits at 2.8%, according to Douglas Elliman's latest report, and average rents have risen 6% year-over-year. The arithmetic favors new development, but only for sponsors with the balance sheet to absorb higher equity requirements and longer hold periods.
For HL&S; LLC, the next 12 months will be decisive. The permits are filed. The architect is engaged. The demolition is cleared. What remains is the capital stack. If the sponsor can secure a construction loan at reasonable terms—say, 65% LTC at SOFR + 350 bps—the project pencils. If not, the permits will expire, and the site will sit fallow until the financing environment improves.
The Church Avenue subway stop is two blocks away. The 2 and 5 trains run 24 hours a day. East Flatbush is not Williamsburg, but it is connected, affordable, and undersupplied. That is the kind of math that attracts capital—when the capital is available.