Cycamore Capital pays $2.7M to Richard Vecchio for mixed-use in Williamsburg

Cycamore Capital through the entity 407 Graham Avenue LLC paid $2.7 million to Richard Vecchio for the three-unit mixed-use building (S3) at 407 Graham Avenue in Williamsburg, Brooklyn.
The deal closed on October 11, 2022 and was recorded on October 14, 2022. The property has 2,100 square feet of built space and 5,400 square feet of additional air rights for a total buildable of 7,500 square feet according to PincusCo analysis of city data. The sale price per built square foot is $1,273 and the price per buildable square foot is $356 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 signatory for Richard Vecchio was Richard Vecchio. The signatory for Cycamore Capital was Kenneth Horowitz.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Cycamore Capital had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Richard Vecchio had not purchased any other properties and had not sold any properties over the same time period. The 2,100-square-foot property generated revenue of $48,006 or $23 per square foot, according to the most recent income and expense figures.

The property

The 407 Graham Avenue parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $733,000.

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 received $100 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

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 7th highest sale turnover among other neighborhoods in the city with $1.9 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 three of the 14 commercial properties representing 17,341 square feet of the 55,335 square feet. The largest owner is Chester Konarzewski, followed by Robert Palmese and then Candida Ventimiglia.
There are no active new building construction projects on this tax block.

The majority, or 54 percent of the 55,335 square feet of built space are walkup buildings, with mixed-use buildings next occupying 43 percent of the space.

The buyer

The PincusCo database currently indicates that Cycamore Capital owned at least six commercial properties in New York City with 26,844 square feet and a city-determined market value of $6 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. The bulk, or 82 percent of the built space, is in Brooklyn, with Queens next at 18 percent of the space.

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