Beltway Capital buys $15.5M note secured by Shlomo Karpen industrial building in East Williamsburg
Beltway Capital Management through the entity Mccormick 101 LLC bought a note with an original principal of $15.5 million from Investors Bank secured by Shlomo Karpen’s industrial building (F1) at 361 Stagg Street in East Williamsburg, Brooklyn.
The deal closed on October 18, 2022 and was recorded on December 14, 2022. The prior lender was Investors Bank which held debt that had an original loan amount of $15.5 million. The property has 79,352 square feet of built space according to PincusCo analysis of city data.
The owner bought the property on September 19, 2005, for $6.4 million. The signatory for Shlomo Karpen was Shlomo Karpen.
This is Beltway Capital’s third note purchase recorded in two days. It recorded two for $20 million on December 13.
Prior sales and revenue
The 79,352-square-foot property generated revenue of $774,412 or $10 per square foot, according to the most recent income and expense figures.
The property
The 361 Stagg Street parcel has frontage of 225 feet and is 100 feet deep with a total lot size of 22,500 square feet. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $3.4 million.
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 $900 in OATH penalties in the last year.
Development
For the tax lot building, it received its initial certificate of occupancy on July 22, 2013. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.
The neighborhood
In East Williamsburg, the majority, or 63 percent of the 16.3 million square feet of commercial built space are industrial buildings, with walkup buildings next occupying 10 percent of the space. In sales, East Williamsburg has 1.3 times the average sales volume among other neighborhoods with $437.4 million in sales volume in the last two years and is the 16th highest in Brooklyn. For development, East Williamsburg has 1.2 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Brooklyn. It had 1.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of two of the 21 commercial properties representing 42,045 square feet of the 370,339 square feet. The two identified owners are Rifka Friedman-Trustee and Shai Kolberg.
On the tax block, there was one new building construction project filed totaling 19,504 square feet. It is a one-unit, 19,504-square-foot S-2 building developed by Leontine Ebers with plans filed April 12, 2017 and it has not been permitted yet.
The majority, or 74 percent of the 370,339 square feet of built space are industrial buildings, with office buildings next occupying 15 percent of the space.
The borrower
The PincusCo database currently indicates that Shlomo Karpen owned at least 29 commercial properties in New York City with 433,348 square feet and a city-determined market value of $77.6 million. (Market value is typically about 50% of actual value.) The portfolio has $195.7 million in debt, with top three lenders as G4 Capital Partners, Kearny Bank, and Bethpage Federal Credit Union respectively. Within the portfolio, the bulk, or 57 percent of the 433,348 square feet of built space are elevator properties, with industrial properties next occupying 23 percent of the space. The bulk, or 78 percent of the built space, is in Brooklyn, with Queens next at 22 percent of the space.
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