ESRT pays $28.6M to L3 Capital in third related Williamsburg purchase

Empire State Realty Trust through the entity ESRT 100-104 North 6th Street, L.L.C. paid $18.1 million to L3 Capital through the entity Rs Jz Bedford – N 6th, LLC for the retail building (K1) at 100-104 North 6th Street in Williamsburg, Brooklyn. The expected use is cash flowing.
The other two purchases were 124 North 6th Street for $18.1 million and 134 North 6th Street for $28.3 million.

This third deal closed on September 25, 2024 and was recorded on October 3, 2024. The two-story property has 16,924 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,690 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 seller bought the property on August 15, 2018, for $32.2 million. The signatory for L3 Capital was Domenic Lanni. The signatory for Empire State Realty Trust was Thomas P. Durels. The contract date was July 3, 2024. RedSky Capital turned over the properties to mezzanine lender L3 Capital as part of a larger transaction.

The property

The mixed-use building in Williamsburg has 16,924 square feet of built space and 3,149 square feet of additional air rights for a total buildable of 20,100 square feet according to a PincusCo analysis of city data. The parcel has frontage of 67 feet and is 100 feet deep with a total lot size of 6,700 square feet. The zoning is M1-2/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 $4.7 million. The most recent loan totaled $122.6 million and was provided by JPMorgan Chase on December 31, 2020.

Prior sales and revenue

This property was sold with 14 other properties by RedSky Capital for $145 million to L3 Capital on December 31, 2020.

The 16,924-square-foot property generated revenue of $953,119 or $56 per square foot, according to the most recent income and expense figures.

Development

Over the past five years, there has been no NYC Department of Buildings new building, demolition, or alteration permit application valued at more than $20,000 filed for this parcel.

For the tax lot building, it received its initial certificate of occupancy on December 5, 2018.

Violations and lawsuits

According to city public data, the property has received $1,135 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

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 $1.8 billion in sales volume in the last two years. For development, Williamsburg has near average amount of major developments among other neighborhoods and is the 2nd highest in Brooklyn. It had 4.6 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 six of the 16 commercial properties representing 76,643 square feet of the 153,337 square feet. The two identified owners are L3 Capital and Frank Mancini. There are no active new building construction projects on this tax block.

The owner

The PincusCo database currently indicates that L3 Capital owned at least 28 commercial properties with 25 residential units in New York City with 201,031 square feet and a city-determined market value of $73.9 million. (Market value is typically about 50% of actual value.) The portfolio has $308.3 million in debt, with top three lenders as JPMorgan Chase, Ladder Capital, and Wintrust Bank respectively. Within the portfolio, the bulk, or 51 percent of the 201,031 square feet of built space are retail properties, with mixed-use properties next occupying 37 percent of the space. The bulk, or 78 percent of the built space, is in Brooklyn, with Manhattan next at 22 percent of the space.

The surrounding

Within a 400-foot radius of 104 North 6 Street, PincusCo identified 11 commercial real estate items of interests occurred over the past 24 months. Of those 11 items, one was for major renovation including a certificate of occupancy change. It was a permit issued on March 27, 2023 for the $2 million renovation of 14,513-square-foot mercantile (M) building with N/A residential units at 108 North 6th Street. Of those 11 items, seven were sales above $5 million totaling $91.8 million. The most recent of the seven was Empire State Realty Trust which bought the 2,510-square-foot, three-unit retail building (K1) on 124 North 6th Street for $18.1 million from L3 Capital on October 2, 2024. Of those 11 items, three were loans above $5 million totaling $43.9 million. The most recent of the three was L3 Capital in which borrowed $30 million from Wintrust Bank secured by the 18,100-square-foot, one-unit mixed-use building (K2) on 91 North 6th Street and three other properties on March 28, 2024.

Direct link to the property’s ACRIS page and link to DOB NOW portal.