Danny Zelouf signs $23.5M loan for 24-unit mixed-use in Williamsburg
Danny Zelouf through the entity 240 Broadway Property LLC as borrower signed a loan with lender Israel Discount Bank valued at $23.5 million for the 24-unit mixed-use building (O2) at 240 Broadway in Williamsburg, Brooklyn.
The deal closed on March 27, 2023 and was recorded on April 27, 2023. The property has 36,254 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $648 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 owner bought the property on May 6, 2019, for $20.1 million. The signatory for Danny Zelouf was Danny Zelouf. The signatory for Israel Discount Bank was Elena Dokianos and Marc Cooper. The original $8.5 million building loan was never given to Zelouf and was reduced to $7 million and split into a building and project loans in this refinancing.
Prior sales and revenue
The owners according to the Department of Housing Preservation and Development includes Danny Zelouf, head officer and Marian Gonzalez, site manager. The business entities are Livingston Management Services and 240 Broadway Property Llc. The 36,254-square-foot property generated revenue of $919,039 or $25 per square foot, according to the most recent income and expense figures.
The property
The office building with 24 residential units in Williamsburg has 36,254 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 70 feet and is 133 feet deep with a total lot size of 8,875 square feet. The lot is irregular. The zoning is C4-3 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $2.8 million.
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 $750 in OATH penalties in the last year.
Development
On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling zero square feet. The largest is a major alteration project for a 33,932 square-foot B building submitted by Jason Behfarin with plans filed January 25, 2021 and permitted July 7, 2021. The second largest is a major alteration project for a 33,932 square-foot B building submitted by Jason Behfarin with plans filed March 2, 2020 and permitted July 30, 2020.
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 6th 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 7th 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 was one pre-foreclosure suit filed among other office buildings in the past 12 months.
The block
On this tax block, PincusCo has identified the owners of two of the 11 commercial properties representing 261,062 square feet of the 365,612 square feet. The two identified owners are Omni New York and Danny Zelouf.
There are no active new building construction projects on this tax block.
The majority, or 72 percent of the 365,612 square feet of built space are elevator buildings, with mixed-use buildings next occupying 10 percent of the space.
The borrower
The PincusCo database currently indicates that Danny Zelouf owned at least four commercial properties with 46 residential units in New York City with 62,017 square feet. Within the portfolio, the bulk, or 58 percent of the 62,017 square feet of built space are office properties, with mixed-use properties next occupying 24 percent of the space. The bulk, or 76 percent of the built space, is in Brooklyn, with Manhattan next at 24 percent of the space.
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