Greenbrook Partners pays $3.8M for mixed-use in Williamsburg

Greenbrook Partners through the entity 499 Grand St, LLC paid $3.8 million to Yaron Rosenthal and Ilan Rosenthal through the entity 499 Grand Street LLC for the three-unit mixed-use building (S9) at 499 Grand Street in Williamsburg, Brooklyn.
The building was subject to a major fire in 2022, the New York Post reported at the time.
The deal closed on April 11, 2024 and was recorded on April 22, 2024. The property has 5,600 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $678 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 July 12, 2012, for $1.9 million. The signatory for Yaron Rosenthal and Ilan Rosenthal was Yaron Rosenthal and Ilan Rosenthal. The signatory for Greenbrook Partners was Gregory P. Fournier. The contract date was February 9, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Greenbrook Partners purchased 13 properties in 10 transactions for a total of $34 million and sold 23 properties in 23 transactions for a total of $129.8 million over the past 24 months.
The seller Yaron Rosenthal had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Ilan Rosenthal, head officer and Yaron Rosenthal, shareholder. The business entities are Livingston Management Services and 499 Grand Street Llc. The 5,600-square-foot property generated revenue of $141,736 or $25 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building with 3 residential units in Williamsburg has 5,600 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 74 feet deep with a total lot size of 1,866 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 $1.7 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $100 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 $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 4.1 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. There were two 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 11 of the 28 commercial properties representing 129,755 square feet of the 178,086 square feet. The largest owner is Shaindy Schwartz, followed by Redzep Djokic and then Rabsky Group.
On the tax block, there was one new building construction project filed totaling 6,352 square feet. It is a five-unit, 6,352 square-foot residential (R-2) building submitted by David Ruff with plans filed October 7, 2014 and it has not been permitted yet.

The majority, or 50 percent of the 178,086 square feet of built space are elevator buildings, with mixed-use buildings next occupying 32 percent of the space.

The seller

The PincusCo database currently indicates that Ilan Rosenthal owned at least one commercial property with four residential units in New York City with 4,200 square feet and a city-determined market value of $1.3 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single walkup property. It is located in Brooklyn.

The buyer

The PincusCo database currently indicates that Greenbrook Partners owned at least 110 commercial properties with 769 residential units in New York City with 711,979 square feet and a city-determined market value of $211.5 million. (Market value is typically about 50% of actual value.) The portfolio has $277.3 million in debt, with top three lenders as Invesco Real Estate, Rialto Capital Management, and MP Real Estate Capital respectively. Within the portfolio, the bulk, or 63 percent of the 711,979 square feet of built space are walkup properties, with mixed-use properties next occupying 9 percent of the space. They are all located in Brooklyn.

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