City Urban Realty acquires retail in Williamsburg through bankruptcy, $31.6M transfer

City Urban Realty through the entity 6163 North 6th Holdings LLC acquired the retail buildings (K1) at 61 and 63 North 6th Street in Williamsburg, Brooklyn, in a bankruptcy process. City Urban Realty was the former lender on the property, and won with a credit bid. The former owner was Rehan Perveez through the entity 59 North 6th Street LLC. The city transfer value was $31.6 million. It’s not clear if that price accurately reflects the value of the property. The expected use is cash flowing.
The deal closed on April 16, 2025 and was recorded on May 1, 2025. The two properties have 7,500 square feet of built space and 15,000 square feet of additional air rights for a total buildable of 22,500 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $4,210 and the price per buildable square foot is $1,403 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 former owner Rehan Perveez was Michael Alvandi . The signatory for City Urban Realty was Michael Alvandi . The contract date was April 16, 2025.

City Urban Realty refinanced the debt on the property in 2018 with $12.7 million. That loan went into default.

Rehan Perveez on April 3, 2023, filed a bankruptcy claiming the property was worth $26 million, in the Eastern District of New York 1-23-41149-nhl for 61 North 6 Street and 63 North 6 Street that had creditor City Urban Realty.

According to the third chapter 11 plan: “Although under no obligation to so, the Secured Creditor [City Urban Realty] (or its assignee, designee or nominee) shall be permitted to submit a credit bid up to the Credit Bid Amount of $30,159,603.24 as of May 22, 2024 with additional interest accrual of $8,466.67 per diem through the actual auction date together with any protective advances incurred after May 22, 2024 and additional interest accrual at default rate of 24% on protective advances though the actual auction date (the “Credit Bid Amount”).” The final credit bid was $33.4 million, according to bankruptcy records. An auction was scheduled in 2024 but canceled because there were no bidders, and again in 2025.

This price per foot with the transfer of $31.6 million, is between the $3,400 and $5,100 that Acadia paid City Urban Realty in three recent transactions in Williamsburg.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer City Urban Realty purchased four properties in four transactions for a total of $57.6 million and sold four properties in four transactions for a total of $66.2 million over the past 24 months.
The former owner Rehan Perveez had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail buildings in Williamsburg have 7,500 square feet of built space and 15,000 square feet of additional air rights for a total buildable of 22,500 square feet according to a PincusCo analysis of city data.  The zoning is M1-2/R6A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3 times FAR for residential with inclusionary housing.

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 billion in sales volume in the last two years. For development, Williamsburg has 2.7 times the average amount of major developments relative to other neighborhoods and is the 2nd highest in Brooklyn. It had 3.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On the tax block of 61 North 6th Street, PincusCo has identified the owners of 11 of the 21 commercial properties representing 82,385 square feet of the 112,885 square feet. The largest owner is Bruce Ratner Family, followed by Afshan Shariati and then Ryco Capital.
On the tax block, there were four new building construction projects totaling 39,184 square feet. The largest is a 18-unit, 26,936 square-foot residential (R-2) building submitted by L3 Capital and filed by Domenic Lanni with plans filed November 30, 2021 and permitted May 13, 2022. The second largest is a 4,325 square-foot mercantile (M) building submitted by Domenic Lanni with plans filed November 20, 2020 and it has not been permitted yet.

The majority, or 35 percent of the 112,885 square feet of built space are elevator buildings, with mixed-use buildings next occupying 29 percent of the space.

The buyer

The PincusCo database currently indicates that City Urban Realty owned at least seven commercial properties with 173 residential units in New York City with 150,315 square feet and a city-determined market value of $34.1 million. (Market value is typically about 50% of actual value.) The portfolio has $53 million in debt, with top three lenders as Israel Discount Bank, Signature Bank, and Bankwell Bank respectively. Within the portfolio, the bulk, or 65 percent of the 150,315 square feet of built space are elevator properties, with walkup properties next occupying 32 percent of the space. The bulk, or 80 percent of the built space, is in Manhattan, with Brooklyn next at 20 percent of the space.

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