EOS Hospitality signs $115.1M acquisition loan with Apollo for hotel in Williamsburg

EOS Hospitality through the entity William Vale Owner LLC as borrower signed a acquisition loan with lender Apollo Global Management through the entity Acrefi B-II, LLC valued at $115.1 million for the William Vale hotel building (HB) at 111 North 12th Street in Williamsburg, Brooklyn.
The deal closed on June 18, 2024 and was recorded on July 8, 2024. The prior lender was Tel Aviv Stock Exchange Bondholders which held debt that had an original loan amount of $155.9 million.The property has 185,141 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $621 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 owner bought the property on June 18, 2024, for $176.4 million. The signatory for EOS Hospitality was Tom Burns.

The property

The hotel building in Williamsburg has 185,141 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 250 feet deep with a total lot size of 49,999 square feet. 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 $39.9 million.

Violations and lawsuits

The property was involved in three lawsuits and one bankruptcy over the past two years. The highest value suit was a $166 million judgment concerning a arbitration filed on September 1, 2022, by Yoel Goldman against Zelig Weiss. The bankruptcy was filed on October 6, 2022, by Mishmaret Trust Company, Yelin Lapidot Provident Funds Management, Phoenix Insurance Company, and Klimark Opportunity Fund III citing assets of $165 million. In addition, according to city public data, the property has received $9,575 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on September 2, 2016. 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 $2.2 billion in sales volume in the last two years. For development, Williamsburg has 4 times the average amount of major developments relative to other neighborhoods and is the 2nd highest in Brooklyn. It had 4.4 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.

The block

On this tax block, PincusCo has identified the owners of one of the nine commercial properties representing 185,141 square feet of the 225,141 square feet. The identified owner is EOS Hospitality.
There are no active new building construction projects on this tax block.

The majority, or 82 percent of the 225,141 square feet of built space are hotel buildings, with industrial buildings next occupying 18 percent of the space.

The borrower

The PincusCo database currently indicates that Eos Hospitality owned at least one commercial property in New York City with 185,141 square feet and a city-determined market value of $39.9 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single hotel property. It is located in Brooklyn.

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