Brookbridge Developers pays $2.7M to L3 Capital for mixed-use in Williamsburg

Brookbridge Developers through the entity 108 North 7th LLC paid $2.7 million to L3 Capital through the entity L3 108 N 7 LLC for the mixed-use building (K4) at 108 North 7th Street in Williamsburg, Brooklyn.
The deal closed on March 27, 2024 and was recorded on April 11, 2024. The property has 2,450 square feet of built space and 302 square feet of additional air rights for a total buildable of 2,750 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,091 and the price per buildable square foot is $972 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 seller bought the property on December 26, 2019, for $5.5 million. The signatory for L3 Capital was Domenic Lanni. The contract date was March 14, 2024. Brookbridge Developers, based in Great Neck, is led by Bobby Shamsian.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Brookbridge Developers had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller L3 Capital had not purchased any other properties and had not sold any properties over the same time period. The 2,450-square-foot property generated revenue of $99,452 or $41 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building with 1 residential units in Williamsburg has 2,450 square feet of built space and 302 square feet of additional air rights for a total buildable of 2,750 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 55 feet deep with a total lot size of 1,375 square feet. The zoning is M1-2/R6B which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 2 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $455,000. The most recent loan totaled $90.5 million and was provided by Ladder Capital on December 26, 2019.

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

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

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 $2.2 billion in sales volume in the last two years. For development, Williamsburg has 4 times the average amount of major developments relative to other neighborhoods and is the 2nd highest in Brooklyn. 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 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 20 of the 28 commercial properties representing 90,467 square feet of the 127,783 square feet. The largest owner is Wlodzimierz Grzybowski, followed by L3 Capital and then Eva Lesniak.
On the tax block, there was one new building construction project filed totaling 5,391 square feet. It is a 5,391 square-foot mercantile (M) building submitted by Michael Alvandi with plans filed October 14, 2022 and permitted April 3, 2023.

The majority, or 52 percent of the 127,783 square feet of built space are mixed-use buildings, with walkup buildings next occupying 24 percent of the space.

The seller

The PincusCo database currently indicates that L3 Capital owned at least 34 commercial properties with 46 residential units in New York City with 232,413 square feet and a city-determined market value of $82.4 million. (Market value is typically about 50% of actual value.) The portfolio has $308.3 million in debt, with top three lenders as JPMorgan Chase, Ladder Capital, and Wintrust Bank respectively. Within the portfolio, the bulk, or 49 percent of the 232,413 square feet of built space are retail properties, with mixed-use properties next occupying 38 percent of the space. The bulk, or 81 percent of the built space, is in Brooklyn, with Manhattan next at 19 percent of the space.

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