Davis Companies acquires $35M stake in 290-unit Lonicera project in Downtown Brooklyn

The Davis Companies through the entity Div Willoughby, LLC acquired a 56 percent interest valued at $35.4 million in Lonicera Partners’ 290-unit development at 55 Willoughby Street in Downtown Brooklyn, Brooklyn.
On the lot, there was one new building construction project filed totaling 227,976 square feet. It is a 290-unit, 227,976 square-foot residential (R-2) building submitted by Lonicera Partners and filed by John Evans with plans filed December 30, 2021 and permitted May 3, 2022.
The partial interest sale closed on May 31, 2023 and was recorded on June 6, 2023.
The seller bought the property on December 31, 2021, for $48 million. This is a 56.26% interest, entity level sale.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Davis Companies purchased one property in one transaction for a total of $51.2 million and sold one property in one transaction for a total of $24.1 million over the past 24 months.
The seller Lonicera Partners purchased multiple properties in seven transactions for a total of $115.5 million and sold four properties in three transactions for a total of $13.2 million over the same time period. The 27,175-square-foot property generated revenue of $1.3 million or $48 per square foot, according to the most recent income and expense figures.

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, $10,000 in ECB penalties, and $12,550 in OATH penalties in the last year.

The neighborhood

In Downtown Brooklyn, The bulk, or 40 percent of the 22.4 million square feet of commercial built space are office buildings, with elevator buildings next occupying 24 percent of the space. In sales, Downtown Brooklyn has 3.6 times the average sales volume among other neighborhoods with $1.3 billion in sales volume in the last two years and is the 2nd highest in Brooklyn. For development, Downtown Brooklyn has 3.7 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Brooklyn. It had 3.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 17 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the five commercial properties representing 1,135,680 square feet of the 1,150,080 square feet. The largest owner is Meadow Partners, followed by Mdg Design + Construction and then Lonicera Partners.
On the tax block, there was one new building construction project filed totaling 227,976 square feet. It is a 290-unit, 227,976 square-foot residential (R-2) building submitted by Lonicera Partners and filed by John Evans with plans filed December 30, 2021 and permitted May 3, 2022.

The majority, or 98 percent of the 1.2 million square feet of built space are office buildings, with elevator buildings next occupying 2 percent of the space.

The seller

The PincusCo database currently indicates that Lonicera Partners owned at least 12 commercial properties with 178 residential units in New York City with 259,015 square feet and a city-determined market value of $51 million. (Market value is typically about 50% of actual value.) The portfolio has $176.1 million in debt, with top three lenders as Santander Bank, City National Bank, and Trans World Equities respectively. Within the portfolio, the bulk, or 55 percent of the 259,015 square feet of built space are elevator properties, with development properties next occupying 14 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 Davis Companies owned at least three commercial properties in New York City with 183,612 square feet and a city-determined market value of $11.5 million. (Market value is typically about 50% of actual value.) The portfolio has $117.7 million in debt, borrowed from Santander Bank and City National Bank. Within the portfolio, the bulk, or 83 percent of the 183,612 square feet of built space are industrial properties, with F9 properties next occupying 17 percent of the space. The bulk, or 83 percent of the built space, is in Queens, with Manhattan next at 17 percent of the space.

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