Eyewear distributor pays $5.4M to L3 Capital for two properties in Williamsburg

Italian eyeglasses distributor Aerial Vision International through the entity N7th St Retail LLC paid $5.4 million to L3 Capital through the entity L3 104-106 N 7 LLC for the two-story office building (O2) at 104 North 7th Street and the adjacent vacant lot at 106 North 7th Street in Williamsburg, Brooklyn. The expected use is owner-occupied.
The deal closed on July 29, 2024 and was recorded on August 13, 2024. The two properties have 5,000 square feet of built space and 4,998 square feet of additional air rights for a total buildable of 9,996 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,080 and the price per buildable square foot is $540 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 L3 Capital was Dominic Lanni. The signatory for Aerial Vision International was Rosemary Hayden. The contract date was April 12, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Aerial Vision International had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller L3 Capital had not purchased any other properties and sold two properties in two transactions for a total of $12.9 million over the same time period. Out of the two properties, one with a total of 5,000 square feet of built space generated revenue of $177,400 per year.

The property

The office building in Williamsburg has 5,000 square feet of built space and 4,998 square feet of additional air rights for a total buildable of 9,996 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,499 square feet. The zoning is M1-2/R6B which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 2 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $803,000. The most recent loan totaled $90.5 million and was provided by Ladder Capital on December 26, 2019.

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

On these lots, there is one active major alteration construction project, 340750048, for a 9,348 square-foot B building. The project was submitted by Domenic Lanni with plans filed July 28, 2020 and it has not been permitted yet.

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 5th highest sale turnover among other neighborhoods in the city with $2 billion in sales volume in the last two years. For development, Williamsburg has 4.2 times the average amount of major developments relative to 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 the tax block of 104 North 7th Street, PincusCo has identified the owners of 21 of the 28 commercial properties representing 93,481 square feet of the 127,783 square feet. The largest owner is L3 Capital, followed by Maurice Setton and then Eva Lesniak.
On the tax block, there was one new building construction project filed totaling 5,391 square feet. It is a 5,391 square-foot mercantile (M) building submitted by Michael Alvandi with plans filed October 14, 2022 and permitted April 3, 2023.

The majority, or 52 percent of the 127,783 square feet of built space are mixed-use buildings, with walkup buildings next occupying 24 percent of the space.

The seller

The PincusCo database currently indicates that L3 Capital owned at least 32 commercial properties with 26 residential units in New York City with 218,213 square feet and a city-determined market value of $76.7 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 53 percent of the 218,213 square feet of built space are retail properties, with mixed-use properties next occupying 34 percent of the space. The bulk, or 79 percent of the built space, is in Brooklyn, with Manhattan next at 21 percent of the space.

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