Directed Capital buys $15.5M note at Shlomo Karpen’s industrial in East Williamsburg

Directed Capital through the entity DCR Mortgage 11 Sub 6, LLC bought a note with an original principal of $15.5 million from Beltway Capital Management secured by Shlomo Karpen’s industrial building (F1) at 361 Stagg Street in East Williamsburg, Brooklyn.
The deal closed on April 17, 2025 and was recorded on April 23, 2025. The prior note holder was Beltway Capital Management which held debt that had an original loan amount of $15.5 million.The property has 79,352 square feet of built space according to a PincusCo analysis of city data.
The owner bought the property on September 19, 2005, for $6.4 million. The signatory for Shlomo Karpen was Shlomo Karpen.

Prior sales and revenue

The 79,352-square-foot property generated revenue of $812,391 or $10 per square foot, according to the most recent income and expense figures.

The property

The industrial building in East Williamsburg has 79,352 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 225 feet and is 100 feet deep with a total lot size of 22,500 square feet. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $3.3 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 $1,000 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on July 22, 2013. 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 East Williamsburg, The majority, or 62 percent of the 17.1 million square feet of commercial built space are industrial buildings, with walkup buildings next occupying 11 percent of the space. In sales, East Williamsburg has 1.4 times the average sales volume among other neighborhoods with $385.1 million in sales volume in the last two years and is the 19th highest in Brooklyn. For development, East Williamsburg has 1.5 times the average amount of major developments relative to other neighborhoods and is the 8th highest in Brooklyn. It had 1.8 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 was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of six of the 21 commercial properties representing 151,397 square feet of the 370,339 square feet. The largest owner is Shlomo Karpen, followed by Steven Landman and then Rifka Friedman-Trustee.
On the tax block, there was one new building construction project filed totaling 19,504 square feet. It is a one-unit, 19,504 square-foot storage (S-2) building submitted by Leontine Ebers with plans filed April 12, 2017 and it has not been permitted yet.

The majority, or 74 percent of the 370,339 square feet of built space are industrial buildings, with office buildings next occupying 15 percent of the space.

The borrower

The PincusCo database currently indicates that Shlomo Karpen owned at least 42 commercial properties with 574 residential units in New York City with 711,402 square feet and a city-determined market value of $110.3 million. (Market value is typically about 50% of actual value.) The portfolio has $290.5 million in debt, with top three lenders as Popular Bank, G4 Capital Partners, and Kearny Bank respectively. Within the portfolio, the bulk, or 37 percent of the 711,402 square feet of built space are elevator properties, with industrial properties next occupying 25 percent of the space. The bulk, or 87 percent of the built space, is in Brooklyn, with Queens next at 13 percent of the space.

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