Developer Shape Capital pays $3.5M for property in Williamsburg

Development firm Shape Capital through the entity 51 Havemeyer Street LLC paid $3.5 million to Yuk Leung Lok through the entity 51 Havemeyer LLC for the likely redevelopment at 51 Havemeyer Street in Williamsburg, Brooklyn.
The deal closed on May 1, 2023 and was recorded on May 8, 2023. The property has 3,375 square feet of built space and 4,123 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 $1,022 and the price per buildable square foot is $460 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 March 15, 2013, for $1.4 million. The signatory for Yuk Leung Lok was Yuk Leung Lok. The signatory for Shape Capital was Rawad Halloway. Shape Capital is a development firm.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Shape Capital had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Yuk Leung Lok 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 Sui Wan Lok, joint owner and Yuk Leung Lok, joint owner.

The property

The mixed-use building with 2 residential units in Williamsburg has 3,375 square feet of built space and 4,123 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 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 $1.6 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 five housing violations and $50 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 $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 6th highest sale turnover among other neighborhoods in the city with $2.4 billion in sales volume in the last two years. For development, Williamsburg is the 8th most active neighborhood among other neighborhoods. It had 4.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 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 nine commercial properties representing 59,448 square feet of the 75,316 square feet. The largest owner is On Chuen Lam, followed by Joel Schwartz and then GFP Real Estate.
On the tax block, there were two new building construction projects totaling 19,193 square feet. The largest is a 20-unit, 13,784 square-foot residential (R-2) building submitted by Yisroel Greenfeld with plans filed April 4, 2022 and it has not been permitted yet. The second largest is a five-unit, 5,408 square-foot residential (R-2) building submitted by Wallace Lau with plans filed April 7, 2022 and it has not been permitted yet.

The majority, or 47 percent of the 75,316 square feet of built space are walkup buildings, with retail buildings next occupying 35 percent of the space.

The buyer

The PincusCo database currently indicates that Shape Capital owned at least one commercial property with two residential units in New York City with 2,400 square feet and a city-determined market value of $2.9 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single B1 property. It is located in Brooklyn.

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