Corner Street Capital pays $8.8M to Joel Schwartz for 7-unit walkup in Williamsburg

Corner Street Capital through the entity 148 South 4 LLC paid $8.8 million to Joel Schwartz through the entity South 4 Plaza LLC for the seven-unit residential walkup building (C1) at 148 South 4th Street in Williamsburg, Brooklyn.
The deal closed on September 6, 2022 and was recorded on September 14, 2022. The property has 4,831 square feet of built space and 506 square feet of additional air rights for a total buildable of 5,346 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,831 and the price per buildable square foot is $1,654 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 September 14, 2012, for $300,000. 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 no record that the buyer Corner Street Capital had purchased any other properties 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 seven properties in five transactions for a total of $36.9 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 South 4 Plaza Llc.

The property

The 148 South 4th Street parcel has frontage of 22 feet and is 100 feet deep with a total lot size of 2,200 square feet. The zoning is M1-2/R6 which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $1.8 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 $1,500 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on February 25, 2016. 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 15 commercial properties representing 47,229 square feet of the 201,835 square feet. The largest owner is Shlomo Karpen, followed by Juan Perez and then Joel Schwartz.
There is one active new building construction project totaling 64,390 square feet. It is a 216-unit, 64,390-square-foot R-1 building developed by David Duvoisin with plans filed May 12, 2017 and permitted February 5, 2021.

The majority, or 46 percent of the 93,849 square feet of built space are walkup buildings, with elevator buildings next occupying 37 percent of the space.

The seller

The PincusCo database currently indicates that Joel Schwartz owned at least 90 commercial properties in New York City with 966,865 square feet and a city-determined market value of $154.1 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 966,865 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.

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