Bungalow Projects pays $7.8M to enlarge dev site in East Williamsburg

Bungalow Projects, led by Travis Feehan and Susi Yu, through the entity NYM 215 Moore, LLC paid $7.8 million to Jennifer Lewin through the entity Standby For Sundown LLC for the industrial building (E9) at 246 Seigel Street in East Williamsburg, Brooklyn. The expected use is ground up development. Bungalow Projects purchased the adjacent vacant parcels on Moore Street and and Seigel Street for $41.5 million from Fortress Investment Group and Aview Equities in December 2023.
The new deal closed on August 8, 2024 and was recorded on August 22, 2024. The property has 10,000 square feet of built space and 7,096 square feet of additional air rights for a total buildable of 17,100 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $780 and the price per buildable square foot is $456 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 July 31, 2023, for $6.1 million. The signatory for Jennifer Lewin was Casey Smith. The signatory for Bungalow Projects was Travis Feehan. The contract date was April 19, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Bungalow Projects purchased 14 properties in three transactions for a total of $76.6 million and has no record it sold any properties over the past 24 months.
The seller Jennifer Lewin purchased two properties in two transactions for a total of $13.1 million and had not sold any properties over the same time period.

The property

The industrial building in East Williamsburg has 10,000 square feet of built space and 7,096 square feet of additional air rights for a total buildable of 17,100 square feet according to a PincusCo analysis of city data. The parcel has frontage of 85 feet and is 100 feet deep with a total lot size of 8,550 square feet. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $1.8 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

For the tax lot building, it received its initial certificate of occupancy on July 16, 2014. 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 East Williamsburg, The majority, or 62 percent of the 17.1 million square feet of commercial built space are industrial buildings, with walkup buildings next occupying 11 percent of the space. In sales, East Williamsburg has near average sales volume among other neighborhoods with $277.8 million in sales volume in the last two years and is the 24th highest in Brooklyn. For development, East Williamsburg has 1.3 times the average amount of major developments relative to other neighborhoods and is the 12th highest in Brooklyn. It had 1.4 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. 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 12 of the 19 commercial properties representing 198,675 square feet of the 268,723 square feet. The two identified owners are Bungalow Projects and Jennifer Lewin.
On the tax block, there was one new building construction project filed totaling 84,275 square feet. It is a 150-unit, 84,275 square-foot hotel/dormitory/shelter (R-1) building submitted by Heritage Equity Partners and filed by Allen Konstam with plans filed May 27, 2015 and permitted July 1, 2016.

The majority, or 54 percent of the 268,723 square feet of built space are hotel buildings, with mixed-use buildings next occupying 25 percent of the space.

The seller

The PincusCo database currently indicates that Jennifer Lewin owned at least two commercial properties in New York City with 19,974 square feet and a city-determined market value of $2.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are industrial properties. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Bungalow Projects owned at least 14 commercial properties with 150 residential units in New York City with 213,115 square feet and a city-determined market value of $13.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 57 percent of the 213,115 square feet of built space are hotel properties, with mixed-use properties next occupying 32 percent of the space. They are all located in Brooklyn.

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