City Urban Realty signs $9.7M construction loan with Calmwater Capital for retail in Williamsburg
City Urban Realty through the entity 95 North 6th Owner LLC as borrower signed a rehab construction loan with lender Calmwater Capital through the entity CRE Credit Fund IV Originations, LLC valued at $9.7 million for the conversion to retail of the two-unit mixed-use building (S2) at 95 North 6th Street in Williamsburg, Brooklyn.
Next door, at 97 North 6th Street, Michael Alvandi of City Urban Realty filed plans for a 5,391-square-foot retail (M) building on October 14, 2022 and it has not been permitted yet.
The loan deal closed on September 29, 2022 and was recorded on October 25, 2022. The property has 4,800 square feet of built space and 2,700 square feet of additional air rights for a total buildable of 7,500 square feet according to PincusCo analysis of city data. The loan price per built square foot is $2,020 and the price per buildable square foot is $1,293 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 September 29, 2022, for $5.3 million. The signatory for City Urban Realty was Michael Alvandi.
The property
The 95 North 6th Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. 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 $446,000.
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.
The neighborhood
In Williamsburg, the bulk, or 39 percent of the 50 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 billion in sales volume in the last two years. For development, Williamsburg is the 8th most active neighborhood among other neighborhoods. It had 4.6 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 18 of the 29 commercial properties representing 84,840 square feet of the 132,168 square feet. The largest owner is L3 Capital, followed by Wlodzimierz Grzybowski and then Eva Lesniak.
On the tax block, there was one new building construction project filed totaling 5,391 square feet. It is a 5,391-square-foot retail (M) building developed by Michael Alvandi with plans filed October 14, 2022 and it has not been permitted yet.
The majority, or 49 percent of the 131,328 square feet of built space are mixed-use buildings, with walkup buildings next occupying 24 percent of the space.
The borrower
The PincusCo database currently indicates that City Urban Realty owned at least five commercial properties in New York City with 47,951 square feet and a city-determined market value of $6.5 million. (Market value is typically about 50% of actual value.) The portfolio has $26.4 million in debt, borrowed from Signature Bank and Calmwater Capital. Within the portfolio, the bulk, or 83 percent of the 47,951 square feet of built space are walkup properties, with mixed-use properties next occupying 17 percent of the space. They are all located in Brooklyn.
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