Double U Realty pays $20M to Cayuga Capital for mixed-use in Williamsburg

Double U Realty through the entity 83 Wythe LLC paid $20 million to Cayuga Capital Management through the entity 86 North 11th Owner LLC for the mixed-use building (K2) at 87 Wythe Avenue in Williamsburg, Brooklyn.
The deal closed on June 22, 2022 and was recorded on July 8, 2022.The property has 1,860 square feet of built space and 42,948 square feet of additional air rights for a total buildable of 44,738 square feet according to PincusCo analysis of city data. The sale price per built square foot is $10,752 and the price per buildable square foot is $447 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.) Jacob Sacks was the signatory for Cayuga. Michael Weitzman is a developer with Double U Realty.
The seller bought the property on February 2, 2015, for $14.5 million.

Prior sales and revenue

The 1,860-square-foot property generated revenue of $117,171 or $63 per square foot, according to the most recent income and expense figures.

The property

The 87 Wythe Avenue parcel has frontage of 149 feet and is 157 feet deep with a total lot size of 22,369 square feet. The lot is irregular. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $974,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

For the tax lot building, it received an alteration initial certificate of occupancy on July 31, 2018. On these lots, there is one active new building construction project for a 68,499-square-foot M building. The project was developed by James Wiseman with plans filed September 9, 2014 and it has not been permitted yet.

The neighborhood

In Williamsburg, the bulk, or 40 percent of the 56.3 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 22 percent of the space. In sales, Williamsburg has the 9th highest sale turnover among other neighborhoods in the city with $1.5 billion in sales volume in the last two years. For development, Williamsburg is the 8th most active neighborhood among other neighborhoods. It had 5.2 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 were eight 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 two of the four commercial properties representing 35,068 square feet of the 75,422 square feet. The identified owner is Cayuga Capital Management. There is one active new building construction project totaling 68,499 square feet. It is a 68,499-square-foot M building developed by James Wiseman with plans filed September 9, 2014 and it has not been permitted yet.

The majority, or 95 percent of the 36,928 square feet of built space are office buildings, with mixed-use buildings next occupying 5 percent of the space.

Surrounding

Within a 400-foot radius of 87 Wythe Avenue, Pincusco identified four commercial real estate items of interests occurred over the past 24 months.
Of those four items, two were for major renovation including a certificate of occupancy change. They were two permits with a total initial cost of $5 million. The most recent of these two items was the permit on May 25, 2021 for a 18,450-square-foot B building with no residential units at 110 North 11th Street.
Of those four items, two were loans above $5 million totaling $56.8 million. The most recent of the two was Cayuga Capital Management which borrowed $28.3 million from M&T Bank secured by the 30,953-square-foot, one-unit office building (O5) on 97 North 10th Street and one other property on July 19, 2021.

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