Watermark Capital Moves Forward With School-to-Resi Conversion in Crown Heights
The developer recently secured a $16.5 million loan for the 42-unit project
By Emily Davis September 10, 2026 5:18 pm
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The 42-unit residential conversion of a former Roman Catholic school at 560 Sterling Place in Crown Heights, Brooklyn, is well underway.
Watermark Capital Group’s redevelopment project at the corner of Classon Avenue and Sterling Place is going ahead at a former school campus owned by its neighbor, St. Teresa of Avila Roman Catholic Church.
Site plans addressed to 783 Classon Avenue, which shares a tax lot with 560 Sterling Place, were filed Thursday with New York City’s Department of Buildings. The filing details the vertical expansion of an existing building to include a 42,181-square-foot residence and a 57,449-square-foot community facility. Signatories for the recent permits tie ownership to the Catholic Church and Watermark.
Watermark, through the entity 560 Sterling, previously obtained the site’s ground lease from St. Teresa of Avila, according to a memorandum of lease filed Tuesday. The document references an initial lease signed in April 2024 and later modified in June 2025. The Tuesday filing coincided with a $16.48 million construction loan for the leasehold provided to Watermark’s project by California-based lender Genesis Capital.
Wolfe Landau, a founding partner at Watermark, signed for the developer on the memorandum of lease and the loan agreement. The developer’s office did not respond to requests for comment.
St. Teresa of Avila’s former school campus, which spans Classon Avenue between Sterling Place and St. Johns Place was once home to Brooklyn Jesuit Prep Middle School. The school relocated to East Flatbush in 2020. The remaining campus buildings are now leased to the New York State Court Officers Academy, which lists its offices at 541 St. Johns Place.
St. Teresa of Avila leaders announced in June 2025 that its own church at 563 Sterling Place would be closing its doors, citing financial strain, declining participation and a deferred, multimillion-dollar repair bill. The decision was reversed late last year, but leaders acknowledged ongoing challenges.
Spokespeople for Genesis Capital did not immediately respond to requests for comment.
Emily Davis can be reached edavis@commercialobserver.com.
