Magen David Yeshivah, an educational institution operating multiple day schools in Brooklyn's Gravesend neighbourhood, has secured US$30 million in construction financing. This loan, provided by BankUnited, is intended to continue the construction of a new Sephardic high school on McDonald Avenue. The loan still requires approval from the state's Attorney General before becoming effective.
The agreement stipulates a variable interest rate with a three-year term. The Magen David Yeshivah's nearby elementary school property at 2130 McDonald Avenue serves as collateral for this loan. According to New York regulations, religious corporations must obtain approval from the Attorney General or a Supreme Court justice before mortgaging, selling, or leasing real estate.
Acquisition and Project Scope
The school had acquired its future sites across three parcels – 1905, 1911, and 1915 McDonald Avenue – in 2023 for a total of US$13.5 million. Jeff Sutton, a prominent retail landlord and an active member of Magen David's board of trustees, supported the school in this property transaction. It is not known whether Sutton or brokers were involved in brokering the terms for the new loan.
Plans for the high school, with estimated total costs of US$50 million, encompass an area of 81,000 square feet. The remaining construction costs amount to US$37.46 million, and the building's completion is scheduled for early 2027.
Property Developments and Background
Founded in 1946, Magen David School sold its former high school at 7801 Bay Parkway in 2024 for US$37.2 million to Success Academy Charter Schools. The school continues to operate an early childhood centre at 2170 McDonald Avenue, as well as its nearby elementary school. Spokespeople for Magen David and BankUnited did not comment upon request.
- —Jewish high school in Brooklyn secures US$30 million construction financing from BankUnited.
- —Approval by the state's Attorney General required for the mortgage on an existing property.
- —Prominent retail investor Jeff Sutton is involved as a trustee.
- —Completion of the US$50 million high school is planned for early 2027.
