Avenue Realty Capital acquires interest from Be-Aviv, Slate valued at $7.78M at 161-unit dev site in Williamsburg
Avenue Realty Capital through the entity Arc IV Boerum Spv LLC acquired an interest from Be-Aviv through the entity Be-Aviv Boerum Lp valued at $6.5 million and for $1.3 million from an affiliate of Slate Property Group for the industrial building (G7) at 159 Boerum Street in Williamsburg, Brooklyn.
The deal closed on October 12, 2022 and was recorded on October 17, 2022.
This is an entity level purchase. Avenue Realty Capital is based in Midtown and led by Udi Kore, Steve Scioscia and Seth Freeman.
Prior sales and revenue
Prior to this transaction, PincusCo has no record that the buyer Avenue Realty Capital had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Be-Aviv had not purchased any other properties and sold two properties in one transactions for a total of $63.5 million over the same time period.
The property
The 159 Boerum St parcel has frontage of 109 feet and is 102 feet deep with a total lot size of 11,178 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $945,000.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $4,000 in ECB penalties and $4,000 in OATH penalties in the last year.
Development
On the lot, there is one active new building construction project for a 161-unit, 138,228 square-foot R-2 building. The project was developed by Slate Property Group David Schwartz with plans filed November 9, 2017 and it has not been permitted yet.
The neighborhood
In Williamsburg, the bulk, or 39 percent of the 50 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 25 percent of the space. In sales, Williamsburg has the 7th highest sale turnover among other neighborhoods in the city with $1.9 billion in sales volume in the last two years. For development, Williamsburg is the 8th most active neighborhood among other neighborhoods. It had 4.6 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.
The block
On this tax block, PincusCo has identified the owners of four of the nine commercial properties representing 57,261 square feet of the 77,261 square feet. The largest owner is SK Development, followed by Graham Living LLC and then Smita Patel.
On the tax block, there was one new building construction project filed totaling 138,228 square feet. It is a 161-unit, 138,228-square-foot R-2 building developed by David Schwartz with plans filed November 9, 2017 and permitted April 1, 2022.
the majority, or 82 percent of the 77,261 square feet of built space are walkup buildings, with mixed-use buildings next occupying 18 percent of the space.
Direct link to Acris document. link