Brooklyn Multifamily Portfolio Linked to Zalmen Wagschal Transferred to Special Servicing

A seven-building Brooklyn portfolio sponsored by Zalmen Wagschal is delinquent and in special servicing despite reported high occupancy and net income.

By: AXL Media

Published: Mar 10, 2026, 6:44 AM EDT

Source: The Real Deal

The Portfolio and Loan Specifics

The portfolio consists of seven residential buildings located primarily in Central Brooklyn, with one outlier in Borough Park. The properties include:

Bed-Stuy / Crown Heights: 30 Claver Place, 269 Kosciuszko Street, 1100 DeKalb Avenue, 119 Albany Avenue, 662 Park Place, and 132 New York Avenue.

Borough Park: 4219 15th Avenue.

Underwritten in 2021, the properties were appraised at a combined $34.2 million. Despite the current delinquency, Morningstar Credit data indicates the portfolio is 100 percent occupied and generates a net operating income (NOI) more than double its annual debt service of $860,031.

The Roots of the Delinquency