DAX Real Estate pays $21.8M for three mixed-use properties in Williamsburg

DAX Real Estate through the entity 232-236 North 12th Owner LLC paid $21.8 million to Lilly Vertuccio through the entity Jv North 12th Street, LLC for the three-unit mixed-use building (S3) at 232 North 12th Street in Williamsburg, Brooklyn, three-unit mixed-use building (S3) at 234 North 12th Street in Williamsburg, Brooklyn, and three-unit mixed-use building (S3) at 236 North 12th Street in Williamsburg, Brooklyn.

The acquisition was financed with a $15 million loan from First Republic Bank.
The deal closed on November 22, 2022 and was recorded on December 9, 2022. The three properties have 25,311 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $860 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 Lilly Vertuccio was Lilly Vertuccio. The signatory for DAX Real Estate was Daniel Hedaya. Maxwell Seibald and Daniel Hedaya are both identified in the loan documents.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 232 North 12th Street.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer DAX Real Estate purchased seven properties in six transactions for a total of $32.6 million and sold one property in one transaction for a total of $34 million over the past 24 months.
The seller Lilly Vertuccio had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Vincent Vertuccio, head officer and Michael Vertuccio, shareholder. The business entity is Jv North 12th Street Family Trust. The three properties with a total of 25,311 square feet of built space generated revenue of $640,620 per year or $25 per square foot. The sale price per square foot was $860.

The property

The 232 North 12th Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is M1-2/R6A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.6 million.

Violations and lawsuits

In addition, according to city public data, the properties have received one housing violation 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 6th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, Williamsburg is the 7th most active neighborhood among other neighborhoods. It had 5 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 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 the tax block of 232 North 12th Street, PincusCo has identified the owners of four of the 10 commercial properties representing 21,629 square feet of the 65,447 square feet. The largest owner is Shaindy Schwartz, followed by Krystyna Kaczmarek and then Nando Niola.
On the tax block, there was one new building construction project filed totaling 35,915 square feet. It is a 53-unit, 35,915-square-foot R-2 building developed by Yisroel Greenfeld with plans filed September 24, 2020 and permitted March 2, 2022.

The majority, or 82 percent of the 65,447 square feet of built space are mixed-use buildings, with walkup buildings next occupying 18 percent of the space.

The buyer

The PincusCo database currently indicates that Dax Real Estate owned at least nine commercial properties in New York City with 54,944 square feet and a city-determined market value of $14.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 77 percent of the 54,944 square feet of built space are mixed-use properties, with walkup properties next occupying 15 percent of the space. They are all located in Brooklyn.

Correction: A prior version of this post showed an building that was not related to this transaction.

Direct link to Acris document. link