Corner Street Capital pays $12M to Joel Schwartz for walkup in Williamsburg

Corner Street Capital through the entity 99 North 4 LLC paid $12 million to Joel Schwartz through the entity 99 North 4th Street LLC for eight-unit residential walkup building (C1) at 99 North 4th Street in Williamsburg, Brooklyn. This property is adjacent to a retail building at 166 Berry Street that Jeff Sutton bought and then sold a stake in that valued it at $31.3 million, with Bank of America as the tenant.
The deal closed on September 6, 2022 and was recorded on September 16, 2022. The property has 6,500 square feet of built space and 722 square feet of additional air rights for a total buildable of 7,224 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,846 and the price per buildable square foot is $1,661 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 October 6, 2016, for $3.6 million. The signatory for Joel Schwartz was Joel Schwartz. The signatory for Corner Street Capital was Ross Banon.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Corner Street Capital purchased two properties in two transactions for a total of $16.5 million and has no record it sold any properties over the past 24 months.
The seller Joel Schwartz purchased 17 properties in 13 transactions for a total of $70.7 million and sold nine properties in seven transactions for a total of $53.5 million over the same time period.

The property

The 99 North 4th Street parcel has frontage of 24 feet and is 100 feet deep with a total lot size of 2,408 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 $1.3 million.The most recent loan totaled $7.8 million and was provided by Citibank on September 1, 2020.

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 two housing violations and $180 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on December 17, 2019. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of six of the 10 commercial properties representing 185,018 square feet of the 216,978 square feet. The largest owner is Jongoon Kim, followed by Corigin and then All Year Management.
There are no active new building construction projects on this tax block.

The majority, or 75 percent of the 216,978 square feet of built space are industrial buildings, with mixed-use buildings next occupying 14 percent of the space.

The seller

The PincusCo database currently indicates that Joel Schwartz owned at least 88 commercial properties in New York City with 957,050 square feet and a city-determined market value of $150.8 million. (Market value is typically about 50% of actual value.) The portfolio has $786.2 million in debt, with top three lenders as Citibank, BridgeCity Capital, and Starwood Capital Group respectively. Within the portfolio, the bulk, or 49 percent of the 957,050 square feet of built space are elevator properties, with walkup properties next occupying 24 percent of the space. The bulk, or 98 percent of the built space, is in Brooklyn, with Queens next at 2 percent of the space.

The buyer

The PincusCo database currently indicates that Corner Street Capital owned at least two commercial properties in New York City with 9,815 square feet and a city-determined market value of $3.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Brooklyn.

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