Cayuga Capital makes additional $24.8M payment at new development in Williamsburg

Cayuga Capital Management through the entity 1 Nassau Manager LLC acquired an interest from Barbara Hershman through the entity Rjb Re Holding Inc. valued at $24.8M for mixed-use building (K2) at 1 Nassau Avenue in Williamsburg, Brooklyn. Cayuga in 2017 paid the same Hershman entity $3.46 million for a deed covering the property. In the subsequent years, Cayuga developed a new building at the site, which was given an initial certificate of occupancy in 2021.
The new sale closed on February 16, 2023 and was recorded on March 8, 2023. The property has 34,538 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $718 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.)
Cayuga Capital Management already controlled the property through a deed dated May 2017 for $3.46 million. The seller in 2017 was the same entity as the new seller, with Barbara Hershman as the president of the seller company. This new sale is an entity level sale, not a deed sale.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Cayuga Capital Management had purchased any other properties and sold three properties in three transactions for a total of $34.8 million over the past 24 months.
The seller Barbara Hershman had not purchased any other properties and had not sold any properties over the same time period.

The property

The 1 Nassau Avenue parcel has frontage of 194 feet and is 141 feet deep with a total lot size of 31,482 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 $2.4 million.The most recent loan totaled $30 million and was provided by BridgeInvest on December 23, 2021.

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 $625 in ECB penalties and $2,495 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on November 19, 2021. 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 Williamsburg, the bulk, or 39 percent of the 49.7 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 6th highest sale turnover among other neighborhoods in the city with $2.2 billion in sales volume in the last two years. For development, Williamsburg is the 6th most active neighborhood among other neighborhoods. It had 4.4 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 three 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 one of the three commercial properties representing 34,538 square feet of the 84,538 square feet. The identified owner is Cayuga Capital Management.
There are no active new building construction projects on this tax block.

The majority, or 59 percent of the 84,538 square feet of built space are industrial buildings, with mixed-use buildings next occupying 41 percent of the space.

The buyer

The PincusCo database currently indicates that Cayuga Capital Management owned at least 25 commercial properties in New York City with 259,833 square feet and a city-determined market value of $42.2 million. (Market value is typically about 50% of actual value.) The portfolio has $170.4 million in debt, with top three lenders as M&T Bank, Amherst Capital Management, and Bridgeinvest respectively. Within the portfolio, the bulk, or 39 percent of the 259,833 square feet of built space are walkup properties, with elevator properties next occupying 24 percent of the space. The bulk, or 96 percent of the built space, is in Brooklyn, with Queens next at 4 percent of the space.

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