Santander lends $5M on 60-unit 404 State Street, up from $3.5M

Santander Bank, N.A. recorded a $5,000,000 mortgage on 2026-10-02 against 404 State Street, a six-story, 60-unit building in Boerum Hill, Brooklyn. The borrower is The State House I, LLC, and the document is dated 2026-09-24.

Why it matters

The new loan is $1.5 million, or 43%, larger than the $3.5 million Sterling National Bank mortgage recorded on the same lot in June 2021. If the earlier loan was paid off at closing, the difference is new money to the owner. The records we pulled do not show a satisfaction of the 2021 loan, and the public mirror lags the live register, so we are not stating the payoff as fact.

For owners of small, older rent-regulated-era walkups and elevator buildings in Downtown Brooklyn, it is a data point: a regional bank is lending about $83,000 per unit on a 1928 building.

The numbers

The city’s PLUTO lot file lists 29,214 sq ft of residential floor area on a 6,750 sq ft lot, built in 1928 and altered in 2015, zoned R6B in the Downtown Brooklyn special district, owned by State House I LLC. That puts the loan at about $171 per building sq ft.

The DOB NOW record for the building, listed under 410 State Street, shows owner business name Pine Management, Inc. and an alteration filing, B01223763, with a stated cost of $295,380 for 60 units. It was filed 2025-05-12 and has a 2026-07-22 permit-stage filing, so the owner has been spending on the building ahead of the refinance. The $295,380 is the filed cost estimate, not a completed spend.

The LLC has appeared on the deed side of the lot since a 1996 transfer to State House 1 LLC. We found no new deed in 2026.

What’s next

Watch for a satisfaction of the 2021 Sterling mortgage to record, which would confirm a refinance rather than a second lien. The 2026 alteration filing is a proposal until DOB signs it off. More coverage of Brooklyn capital markets is on the New York market page.