Former lender ARC Pe acquires mixed-use in Williamsburg valued at $4.6M from Mendy Deutsch
Former lender ARC Pe through the entity Palm Ave Hialeah Trust A Delaware Statutory Trust acquired at a value of $4.6 million from Mendy Deutsch through the entity 429 Wythe Ave LLC for three-unit mixed-use building (S3) at 429 Wythe Avenue in Williamsburg, Brooklyn.
The deal closed on June 30, 2022 and was recorded on October 19, 2022. The property has 5,460 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $842 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 October 30, 2020, for $7.3 million.
Prior sales and revenue
Prior to this transaction, Pincusco has no record that the buyer ARC Pe had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Mendy Deutsch had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Aaron Aaronson, head officer. The business entity is Aaron & Sons Llc. The 5,460-square-foot property generated revenue of $124,816 or $23 per square foot, according to the most recent income and expense figures.
The property
The 429 Wythe Avenue parcel has frontage of 20 feet and is 64 feet deep with a total lot size of 1,305 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.1 million.
Violations and lawsuits
The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $4.6 million commercial foreclosure concerning a loan filed on October 29, 2021, by ConnectOne Bank against Mendel Deutsch. In addition, according to city public data, the property has received one DOB violation, $4,375 in ECB penalties, and $4,375 in OATH penalties in the last year.
Development
There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.
The neighborhood
In Williamsburg, the bulk, or 39 percent of the 50 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 7th highest sale turnover among other neighborhoods in the city with $2 billion in sales volume in the last two years. For development, Williamsburg is the 8th most active neighborhood among other neighborhoods. 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. There were three pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.
The block
On this tax block, PincusCo has identified the owners of five of the 11 commercial properties representing 25,938 square feet of the 37,865 square feet. The largest owner is Itzhaki Acquisitions, followed by Southside United H.D.F.C. and then Mendel Deutsch.
There are no active new building construction projects on this tax block.
The majority, or 57 percent of the 35,831 square feet of built space are walkup buildings, with mixed-use buildings next occupying 26 percent of the space.
Direct link to Acris document. link