Borough Developers, Lineage Healthcare, Moshe Richard pay $13.8M in Williamsburg

Borough Developers, Lineage Healthcare and Moshe Richard paid $13.8 million for two adjacent properties at 101 South 6th Street and 109 South 6th Street in Williamsburg, Brooklyn, in two separate transactions.

At 101 South 6th Street, Shimon Kleinman submitted a major alteration application for a conversion of the 10,889 square-foot commercial (COM) building with an alternate address of 107 South 6th Street. The plan was filed with the New York City Department of Buildings on December 14, 2023 under job number B00977146. It calls for a rehab of the four-story building. The project is described in the filing as: existing four-story and cellar, commercial building, to be converted into 29 units mixed-use building.

The purchase was financed with an $8 million loan from S3 Capital.

In the larger transaction, Borough Developers, Lineage Healthcare, and Moshe Richard through the entity 107-109 S6 LLC paid $10 million to Joseph Lentini through the entity Williamsburg Workshop LLC for the mixed-use building (K4) at 101-107 South 6th Street in Williamsburg, Brooklyn.
The deal closed on January 26, 2024 and was recorded on February 16, 2024. The property has 20,150 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $496 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)

Borough Developers, Lineage Healthcare, and Moshe Richard through the entity 107-109 S6 LLC paid $3.8 million to Joseph Lentini through the entity Williamsburg Studios LLC for the three-unit 1-4 family building (C0) at 109 South 6th Street in Williamsburg, Brooklyn. The deal closed on January 26, 2024 and was recorded on February 16, 2024. The property has 4,839 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $785 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)

The signatory for Joseph Lentini was Joseph Lentini. The signatory for Borough Developers, Lineage Healthcare, and Moshe Richard was Mendel Berkowitz. The contract date was August 31, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Borough Developers purchased one property in one transaction for a total of $12 million and has no record it sold any properties over the past 24 months.
The seller Joseph Lentini had not purchased any other properties and had not sold any properties over the same time period.

The property

The mixed-use building in Williamsburg has 20,150 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 84 feet and is 67 feet deep with a total lot size of 5,525 square feet. The lot is irregular. The zoning is C4-3 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $2.3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

On the lot, there were two other major construction plans filed but never completed. The largest was a new building project for a 242-unit, 137,302 square-foot hotel (R-10 building submitted by Joel Wertzberger with plans filed April 30, 2020 and it has not been permitted yet. The second largest was a major alteration project for a 20,150 square-foot B building submitted by Brian Lentini with plans filed August 28, 2012 and permitted August 4, 2016.

The neighborhood

In Williamsburg, The bulk, or 39 percent of the 50.4 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 4th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Williamsburg is the 10th most active neighborhood among other neighborhoods. It had 4.3 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 were two pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the 11 commercial properties representing 11,000 square feet of the 44,465 square feet. The two identified owners are Paul Henry and Chany Jacobowitz.

The buyer

The PincusCo database currently indicates that Borough Developers owned at least one commercial property in New York City with 57,200 square feet and a city-determined market value of $6.5 million. (Market value is typically about 50% of actual value.) The portfolio has $39 million in debt, borrowed from S3 Capital. The portfolio consists of at least a single V1 property. It is located in Brooklyn.

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