Watermark Capital Advances 42-Unit Adaptive Reuse of Crown Heights School Campus

Watermark Capital Group is moving forward with an adaptive reuse project to convert a former Roman Catholic school campus at 560 Sterling Place in Brooklyn's Crown Heights neighborhood into residential housing.

Recent filings with the New York City Department of Buildings outline a vertical expansion at 783 Classon Avenue, which shares a tax lot with the Sterling Place parcel. Plans call for creating a 42-unit, 42,181-square-foot residential component alongside 57,449 square feet designated for community facility use. The site was previously home to Brooklyn Jesuit Prep Middle School before the institution relocated in 2020.

Watermark controls the property through a long-term ground lease with neighboring St. Teresa of Avila Roman Catholic Church, initially executed in April 2024 and amended in June 2025. To fund the redevelopment, California-based lender Genesis Capital provided a $16.48 million construction loan secured by the leasehold interest.

This project highlights ongoing opportunities for developers to partner with religious organizations seeking liquidity by monetizing underutilized campus assets through ground leases and residential conversions.