Dalan Real Estate pays $6.6M for mixed-use in Williamsburg

Dalan Real Estate through the entity 116 Bedford Holdings LLC paid $6.6 million to Bren Salamon and Alexander Maroni through the entity 1193 Bergen LLC for the six-unit mixed-use building (S5) at 116 Bedford Avenue in Williamsburg, Brooklyn.
The deal closed on December 28, 2023 and was recorded on January 18, 2024. The property has 6,735 square feet of built space and 749 square feet of additional air rights for a total buildable of 7,497 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $979 and the price per buildable square foot is $880 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 December 23, 2021, for $6 million. The signatory for Bren Salamon and Alexander Maroni was Todd Schwartz. The signatory for Dalan Real Estate was Daniel Loeb. The contract date was October 27, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Dalan Real Estate purchased six properties in six transactions for a total of $498 million and has no record it sold any properties over the past 24 months.
The seller Bren Salamon purchased two properties in two transactions for a total of $6.4 million and sold two properties in two transactions for a total of $6.6 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Bren Salamon, head officer and Alex Maroni, officer. The business entities are Sunrise Real Estate Corp and 1193 Bergen LLC.

The property

The mixed-use building with 6 residential units in Williamsburg has 6,735 square feet of built space and 749 square feet of additional air rights for a total buildable of 7,497 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,499 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 $1.7 million. The most recent loan totaled $5.5 million and was provided by Derby Copeland Capital on December 31, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received three DOB violations, five 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 November 4, 2022. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Williamsburg, The bulk, or 39 percent of the 50.4 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 5th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Williamsburg is the 8th most active neighborhood among other neighborhoods. It had 4.5 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 five of the 11 commercial properties representing 67,283 square feet of the 96,333 square feet. The largest owner is Metlife, followed by Matthew Grabczynski and then Joseph Swatck.
There are no active new building construction projects on this tax block.

The majority, or 44 percent of the 96,333 square feet of built space are elevator buildings, with walkup buildings next occupying 37 percent of the space.

The seller

The PincusCo database currently indicates that Bren Salamon owned at least two commercial properties with five residential units in New York City with 6,463 square feet and a city-determined market value of $3.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are mixed-use properties. They are all located in Brooklyn.
The PincusCo database currently indicates that Alexander Maroni owned at least one commercial property with three residential units in New York City with 3,763 square feet and a city-determined market value of $1.3 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single mixed-use property. It is located in Brooklyn.

The buyer

The PincusCo database currently indicates that Dalan Real Estate (which has also used the name Dalan Management) owned at least 43 commercial properties with 1,370 residential units in New York City with 1,355,262 square feet and a city-determined market value of $358.5 million. (Market value is typically about 50% of actual value.) The portfolio has $162.8 million in debt, with top three lenders as Popular Bank, Mesa West Capital, and New York Community Bank respectively (within deals financed since July 2019 of $5 million and up). Within the portfolio, the bulk, or 70 percent of the 1,355,262 square feet of built space are elevator properties, with walkup properties next occupying 19 percent of the space. The bulk, or 56 percent of the built space, is in Manhattan, with Brooklyn next at 44 percent of the space.

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