Edery Global signs $31.5M construction loan with S3 Capital for dev site in Williamsburg

Edery Global through the entity 110 N1 Owner, LLC as borrower signed a new construction loan with lender S3 Capital through the entity S3 Re 110 North 1st Funding LLC valued at $31.5 million for four properties including the industrial building at 110 North First Street in Williamsburg, Brooklyn, midblock three-unit mixed-use building at 105 Grand Street in Williamsburg, Brooklyn, and midblock four-unit 1-4 family building at 109 Grand Street in Williamsburg, Brooklyn.
The deal closed on April 13, 2022 and was recorded on May 17, 2022. The prior lender was S3 Capital which held debt that had an original loan amount of $8 million. The four properties have 17,800 square feet of built space and 21,825 square feet of additional air rights for a total buildable of 39,582 square feet according to PincusCo analysis of city data. The loan price per built square foot is $1,769 and the price per buildable square foot is $795 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 Edery Global was Harely Edery.

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 105 Grand Street.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes David Yellin, joint owner and Jesse Moore, joint owner.

The property

The 105 Grand Street parcel has frontage of 25 feet and is 75 feet deep with a total lot size of 1,911 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.5 million.The most recent loan totaled $8 million and was provided by Spruce Capital on May 6, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $8,750 in ECB penalties and $9,450 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 38-unit, 48,615-square-foot R-2 building. The project was developed by DDG Partners with plans filed November 2, 2018 and it has not been permitted yet.

The neighborhood

In Williamsburg, the bulk, or 35 percent of the 65.1 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 19 percent of the space. In sales, Williamsburg has the 9th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Williamsburg is the 6th most active neighborhood among other neighborhoods. It had 5.1 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 seven pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On the tax block of 105 Grand Street, PincusCo has identified the owners of 10 of the 24 commercial properties representing 42,981 square feet of the 100,129 square feet. The largest owner is EDRE Development, followed by Joel Schwartz and then Jeremy Armstrong. There are five active new building construction projects totaling 216,471 square feet. The largest is a 38-unit, 48,615-square-foot R-2 building developed by Joseph McMillan with plans filed November 2, 2018 and it has not been permitted yet. The second largest is a 40-unit, 34,975-square-foot R-2 building developed by Yitzchok Hager with plans filed August 29, 2018 and it has not been permitted yet.

the majority, or 32 percent of the 127,395 square feet of built space are mixed-use buildings, with industrial buildings next occupying 31 percent of the space.

Surrounding

Within a 400-foot radius of 105 Grand Street, Pincusco identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, three were in new building development. There were two new building permit applications and one new building permit. The most recent of these three items was a permit on April 19, 2022 for a 48,615-square-foot R-2 building with 38 residential units at 110 North 1st Street.
Of those nine items, two were for major renovation including a certificate of occupancy change. They were two permits with a total initial cost of $3.6 million. The most recent of these two items was the permit on June 17, 2021 for a 13,098-square-foot B building with zero residential units at 107 North 1st Street.
Of those nine items, two were sales above $5 million totaling $24.8 million. The most recent of the two was Joel Schwartz which bought the 10,500-square-foot, one-unit office building (O2) on 88 North 1st Street for $11 million from Bernard Gans on April 18, 2022.
Of those nine items, two were loans above $5 million totaling $49.3 million. The most recent of the two was Joel Schwartz which borrowed $8.5 million from S3 Capital secured by the 10,500-square-foot, one-unit office building (O2) on 88 North 1st Street on April 18, 2022.

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