City Urban Realty pays $7.8M for specialty in Williamsburg

City Urban Realty through the entity 97 North 6th Owner LLC paid $7.8 million to Adrian David Marantz through the entity 97 No. 6th Street, LLC for midblock specialty building at 97 North 6th Street in Williamsburg, Brooklyn.
The deal closed on April 28, 2022 and was recorded on May 12, 2022. The property has zero square feet of built space and 11,250 square feet of additional air rights for a total buildable of 11,250 square feet according to PincusCo analysis of city data. The sale price per buildable square foot is $693 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 23, 2015, for $2.6 million. The signatory for Adrian David Marantz was Dagan LaCorte. The signatory for City Urban Realty was Michael Alvandi. Adrian David Marantz was listed as the member of the owner LLC on the previous deed for the property.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer City Urban Realty purchased one properties in one transactions for a total of $7 million and has no record it sold any properties over the past 24 months.
The seller Adrian David Marantz had not purchased any other properties and had not sold any properties over the same time period.

The property

The 97 North 6th Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 3,750 square feet. The lot is irregular. 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 city-designated market value for the property in 2022 is $96,000.

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 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 $5 million on this tax lot.

The neighborhood

In Williamsburg, the bulk, or 35 percent of the 65.1 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 19 percent of the space. In sales, Williamsburg has the 9th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Williamsburg is the 6th most active neighborhood among other neighborhoods. It had 5.1 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.

The block

On this tax block, PincusCo has identified the owners of 16 of the 29 commercial properties representing 77,840 square feet of the 132,168 square feet. The largest owner is L3 Capital, followed by Eva Lesniak and then Eric Mann. There are no active new building construction projects on this tax block.

The majority, or 45 percent of the 143,881 square feet of built space are mixed-use buildings, with residential walkup buildings next occupying 21 percent of the space.

The buyer

The PincusCo database currently indicates that City Urban Realty owned at least three commercial properties with 43,151 square feet and a city-determined market value of $6.1 million. (Market value is typically about 50% of actual value.) The portfolio has $14.4 million in debt, borrowed from Signature Bank and Calmwater Capital. Within the portfolio, the bulk, or 92 percent of the 43,151 square feet of built space are residential walkup properties, with mixed-use properties next occupying 8 percent of the space. They are all located in Brooklyn.

Surrounding

Within a 400-foot radius of 97 North 6th Street, PincusCo identified 11 commercial real estate items of interests occurred over the past 24 months.
Of those 11 items, six were for major renovation including a certificate of occupancy change. They were three permit applications with a total initial cost of $3.7 million and three permits with a total initial cost of $1.6 million. The most recent of these six items was the permit on January 26, 2022 for a 48-square-foot R-3 building with two residential units at 155 Wythe Avenue.
Of those 11 items, two were sales above $5 million totaling $152 million. The most recent of the two was City Urban Realty which bought the 3,360-square-foot, four-unit mixed-use building (K4) on 107 North 6th Street for $7 million from Ariel Zablozki on December 29, 2021.
Of those 11 items, three were loans above $5 million totaling $154.5 million. The most recent of the three was City Urban Realty which borrowed $5.4 million from Calmwater Capital secured by the 3,360-square-foot, four-unit mixed-use building (K4) on 107 North 6th Street on December 29, 2021.

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