EDRE Development pays $7.6M for dev site in Williamsburg
EDRE Development through the entity 50 South 2nd Owner, LLC paid $7.6 million to Cerbert S.J. Noonan through the entity 56 South Second LLC for the industrial building (E1) at 41R South 3rd Street in Williamsburg, Brooklyn, industrial building (G7) at 50 South 2nd Street in Williamsburg, Brooklyn, and industrial building (G7) at N/A South 2nd Street in Williamsburg, Brooklyn.
The deal closed on June 21, 2023 and was recorded on June 27, 2023. The three properties have 2,400 square feet of built space and 26,565 square feet of additional air rights for a total buildable of 28,974 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $3,183 and the price per buildable square foot is $263 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.) Based on the price per foot, PincusCo projects this is a development site sale.
The signatory for Cerbert S.J. Noonan was Cerbert S.J. Noonan. The signatory for EDRE Development was Harel 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 50 South 2nd Street.
Prior sales and revenue
Prior to this transaction, PincusCo has records that the buyer EDRE Development purchased six properties in one transactions for a total of $13 million and has no record it sold any properties over the past 24 months.
The seller Cerbert S.J. Noonan had not purchased any other properties and had not sold any properties over the same time period. Out of the three properties, one with a total of 2,400 square feet of built space generated revenue of $46,403 per year.
The property
The industrial building in Williamsburg has 2,400 square feet of built space and 26,565 square feet of additional air rights for a total buildable of 28,974 square feet according to a PincusCo analysis of city data. The parcel has frontage of 40 feet and is 125 feet deep with a total lot size of 4,999 square feet. The zoning is M1-4/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 $345,000.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations 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 4th highest sale turnover among other neighborhoods in the city with $2.5 billion in sales volume in the last two years. For development, Williamsburg is the 9th 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.
The block
On the tax block of 50 South 2nd Street, PincusCo has identified the owners of one of the 10 commercial properties representing 3,750 square feet of the 61,556 square feet. The identified owner is Shulem Herman.
On the tax block, there was one new building construction project filed totaling 77,922 square feet. It is a 28-unit, 77,922 square-foot residential (R-2) building submitted by Michael Walsdorf with plans filed November 10, 2016 and permitted June 27, 2017.
The majority, or 45 percent of the 61,556 square feet of built space are industrial buildings, with walkup buildings next occupying 20 percent of the space.
The buyer
The PincusCo database currently indicates that Edre Development owned at least two commercial properties in New York City with 4,575 square feet and a city-determined market value of $2,580. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 95 percent of the 4,575 square feet of built space are E1 properties, with Z9 properties next occupying 5 percent of the space. They are all located in Brooklyn.
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