Corner Street Capital pays $7.7M to Joel Schwartz for residential walkup in Williamsburg

Corner Street Capital through the entity 273 Leonard Street LLC paid $7.7 million to Joel Schwartz through the entity 273 Leonard LLC for seven-unit residential walkup building (C1) at 273 Leonard Street in Williamsburg, Brooklyn.
This is the second exchange between the parties. On the same date, Schwartz sold 148 South 4th Street for $8.8 million to Corner Street.
The deal closed on September 6, 2022 and was recorded on September 15, 2022. The property has 4,984 square feet of built space and 25 square feet of additional air rights for a total buildable of 5,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,543 and the price per buildable square foot is $1,538 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 February 15, 2013, for $1.3 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 one property in one transaction for a total of $8.8 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 eight properties in six transactions for a total of $45.8 million over the same time period. The former owner according to the Department of Housing Preservation and Development is Charles Schwartz, head officer. The business entity is 273 Leonard Llc. The 4,984-square-foot property generated revenue of $126,145 or $25 per square foot, according to the most recent income and expense figures.

The property

The 273 Leonard 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 R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.5 million.

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 $380 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 9, 2015. 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 five of the 12 commercial properties representing 26,604 square feet of the 68,354 square feet. The largest owner is John Imperatore, followed by Domenic Varuzza and then Bart Slomkowski.
There are two active new building construction projects totaling 14,916 square feet. The largest is a nine-unit, 9,916-square-foot R-2 building developed by Han Soon Yom with plans filed December 15, 2015 and permitted February 12, 2018. The second largest is a four-unit, 5,000-square-foot R-2 building developed by James Nunziata with plans filed July 22, 2021 and it has not been permitted yet.

the majority, or 70 percent of the 68,354 square feet of built space are walkup buildings, with elevator buildings next occupying 16 percent of the space.

The seller

The PincusCo database currently indicates that Joel Schwartz owned at least 89 commercial properties in New York City with 962,034 square feet and a city-determined market value of $152.3 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 962,034 square feet of built space are elevator properties, with walkup properties next occupying 25 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 one commercial property in New York City with 4,831 square feet and a city-determined market value of $1.8 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single walkup property. It is located in Brooklyn.

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