The development of a former Roman Catholic school building into 42 residential units at 560 Sterling Place in Crown Heights, Brooklyn, is moving forward. The Watermark Capital Group's conversion project, located at the corner of Classon Avenue and Sterling Place, is taking place on a former school campus owned by the adjacent St. Teresa of Avila Roman Catholic Church.
Construction plans, addressed to 783 Classon Avenue, which shares the same tax lot as 560 Sterling Place, were recently filed with the New York City Department of Buildings. The filing outlines the vertical extension of an existing building to create a 42,181-square-foot residential property and a 57,449-square-foot community facility. The signatories on the current permits link ownership to the Catholic Church and Watermark.
Watermark, through the entity 560 Sterling, had previously acquired the ground lease for the property from St. Teresa of Avila, as indicated by a recently filed lease deed. The document refers to a lease agreement originally signed in April 2024 and modified in June 2025.
Financing and Site History
The filing of the lease deed coincided with a $16.48 million construction loan for the ground lease, provided by California-based lender Genesis Capital for Watermark's project. Wolfe Landau, founding partner at Watermark, signed the lease deed and the loan agreement on behalf of the developer. A request to the developer's office remained unanswered.
The former St. Teresa of Avila school campus, which stretches along Classon Avenue between Sterling Place and St. Johns Place, was once home to the Brooklyn Jesuit Prep Middle School. This school relocated to East Flatbush in 2020. The remaining campus buildings are currently leased to the New York State Court Officers Academy, whose offices are listed at 541 St. Johns Place.
The leadership of St. Teresa of Avila had announced the closure of its own church at 563 Sterling Place in June 2025, citing financial difficulties, declining attendance, and outstanding repair costs amounting to millions. This decision was reversed late last year, though the leadership acknowledged ongoing challenges. Spokespeople for Genesis Capital did not immediately respond to requests for comment.
