Caro Enterprises signs $20M refi with Bank of America for 69-unit rental in Williamsburg

Caro Enterprises through the entity Williamsburg Lofts Owner, LLC as borrower signed a refi loan with lender Bank of America valued at $20 million for the 69-unit residential elevator building (D3) at 390 Wythe Avenue in Williamsburg, Brooklyn.
The deal closed on September 18, 2024 and was recorded on September 23, 2024. The prior lender was Hines which held debt that had an original loan amount of $28 million.
The property has 61,028 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $328 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 owner bought the property on October 15, 2008, for $12.5 million. The signatory for Caro Enterprises was Joseph P. Dougherty. The signatory for Bank of America was Jessica Fritts. The borrower paid down $8 million and now the property is secured by a $20 million loan. Christian Pompa, a real estate developer and the heir to the company, who signed for the loan in 2021, died in 2022.

Prior sales and revenue

The owners identified in Department of Housing Preservation and Development records include the late Christian Pompa, individual owner and John Hot, site manager. The business entity is Williamsburg Lofts Owner, Llc.

The property

The residential elevator building with 69 residential units in Williamsburg has 61,028 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 105 feet and is 90 feet deep with a total lot size of 9,450 square feet. The zoning is M1-2/R6 which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 2.43 times FAR for residential. The property has a J-51 exemption that started in 2016 and expires in 2030. The city-designated market value for the property in 2022 is $16.8 million. The most recent loan totaled $37.3 million and was provided by Hines Interests on June 9, 2021. The property has 69 rent regulated units according to city tax records from 2022.

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 block

On this tax block, PincusCo has identified the owners of four of the 10 commercial properties representing 127,331 square feet of the 191,999 square feet. The largest owner is Caro Enterprises, followed by Eugene Buchinger and then Malka Ausch.
There are no active new building construction projects on this tax block.

The majority, or 48 percent of the 191,999 square feet of built space are elevator buildings, with walkup buildings next occupying 30 percent of the space.

The borrower

The PincusCo database currently indicates that Caro Enterprises owned at least three commercial properties with 388 residential units in New York City with 368,806 square feet and a city-determined market value of $64.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are elevator properties. The bulk, or 57 percent of the built space, is in Manhattan, with Queens next at 28 percent of the space.

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