Corner Street Capital pays $36.1M to Joel Schwartz for 3 rentals in Brooklyn, part of $166M deal

Corner Street Capital paid $36.1 million to Joel Schwartz and Shaindy Schwartz for three rental buildings in Brooklyn, part of 17 property, $166 million deal first signed in April 2022 between the parties, according to Acris documents and information from the Tel Aviv Stock Exchange records. PincusCo has previously reported on three transactions that are part of the larger portfolio sale, that totaled about $29 million.
In addition, Corner Street Capital borrowed $54 million from Customers Bank for eight of the 17 properties acquired as part of the former Schwartz portfolio.

In the largest of the sales recorded yesterday, Corner Street Capital through the entity 58 Palmetto LLC paid $15.6 million to Joel Schwartz through the entity 58 Palmetto Brooklyn LLC for 27-unit residential elevator building (D1) at 58 Palmetto Street in Bushwick, Brooklyn.
The deal closed on September 6, 2022 and was recorded on September 19, 2022.The property has 20,835 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $748 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 March 15, 2019, for $4.2 million.

In the second property, Corner Street through the entity 175 Palmetto LLC paid $11.6 million to Joel Schwartz’s 177 Palmetto LLC for industrial building (G7) at 177 Palmetto Street in Bushwick, Brooklyn and property at 175 Palmetto Street in Bushwick, Brooklyn. The deal closed on September 6, 2022 and was recorded on September 19, 2022.The two properties have zero square feet of built space and 12,150 square feet of additional air rights for a total buildable of 12,150 square feet according to PincusCo analysis of city data. The sale price per built square foot is $N/A and the price per buildable square foot is $954 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.)

In the third, Corner Street’s 540 Driggs LLC paid $8.9 million to Joel Schwartz’s Driggs Flats LLC for eight-unit residential walkup building (C1) at 540 Driggs Avenue in Williamsburg, Brooklyn. The deal closed on September 6, 2022 and was recorded on September 19, 2022.The property has 5,200 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $1,717 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 June 15, 2016, for $5.2 million.
The signatory for Corner Street was Ross Banon, and for Joel Schwartz was Joel Schwartz.

The property

The 58 Palmetto Street parcel has frontage of 75 feet and is 100 feet deep with a total lot size of 7,500 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.4 million.The most recent loan totaled $12.8 million and was provided by Jovia Financial on December 16, 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 $3,125 in ECB penalties, four housing violations, and $3,175 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on April 7, 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 block

On this tax block, PincusCo has identified the owners of three of the six commercial properties representing 32,745 square feet of the 45,997 square feet. The largest owner is Shaindy Schwartz, followed by Sinai Sassouni and then Abraham Grunhut.
On the tax block, there were four new building construction projects totaling 27,301 square feet. The largest is a 10-unit, 10,398-square-foot R-2 building developed by Ricardo Pagan with plans filed June 18, 2021 and permitted June 2, 2022. The second largest is a eight-unit, 6,089-square-foot R-2 building developed by Oz Rabinovitz with plans filed March 23, 2022 and it has not been permitted yet.

The majority, or 54 percent of the 45,997 square feet of built space are walkup buildings, with elevator buildings next occupying 45 percent of the space.

Surrounding

Within a 400-foot radius of 58 Palmetto Street, Pincusco identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, three were loans above $5 million totaling $740 million. The most recent of the three was Carlyle Group which borrowed $500 million from Invesco Real Estate secured by the 7,200-square-foot, two-unit two-family building (B9) on 41 Woodbine Street and 37 other properties on July 18, 2022.

Direct link to Acris document. link