Guy Peleg signs $14M construction loan for 25-unit mixed-use in Williamsburg
Guy Peleg through the entity 711-717 Grand LLC as borrower signed a new construction loan with lender Valley National Bank valued at $14 million for the two-unit mixed-use building (S2) at 717 Grand Street in Williamsburg, Brooklyn.
On the lot, there is a new building project for a 25-unit, 25,215 square-foot R-2 building developed by Idan Magen with plans filed February 17, 2022 and it has not been permitted yet.
The loan closed on March 9, 2023 and was recorded on March 16, 2023. The prior lender was Signature Bank which held debt that had an original loan amount of $3 million.
The owner bought the property on September 4, 2020, for $5.3 million. The signatory for Guy Peleg was Guy Peleg. The signatory for Valley National Bank was Oren Saperstein and Roger Rofe.
The property
The 717 Grand Street parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,000 square feet. The zoning is C4-4A which allows for up to 4 times floor area ratio (FAR) for commercial and up to 4 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1 million.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.
The neighborhood
In Williamsburg, the bulk, or 39 percent of the 49.7 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 6th highest sale turnover among other neighborhoods in the city with $2.2 billion in sales volume in the last two years. For development, Williamsburg is the 6th most active neighborhood among other neighborhoods. 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. 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 three of the 17 commercial properties representing 16,923 square feet of the 149,767 square feet. The largest owner is Madison Realty Capital, followed by Jacob Kohn and then Guy Peleg.
On the tax block, there was one new building construction project filed totaling 25,215 square feet. It is a 25-unit, 25,215-square-foot R-2 building developed by Idan Magen with plans filed February 17, 2022 and it has not been permitted yet.
The majority, or 59 percent of the 89,662 square feet of built space are mixed-use buildings, with walkup buildings next occupying 18 percent of the space.
The borrower
The PincusCo database currently indicates that Guy Peleg owned at least four commercial properties in New York City with 9,283 square feet and a city-determined market value of $4.3 million. (Market value is typically about 50% of actual value.) The portfolio has $8 million in debt, borrowed from Bank Leumi. Within the portfolio, the bulk, or 85 percent of the 9,283 square feet of built space are walkup properties, with mixed-use properties next occupying 15 percent of the space. They are all located in Brooklyn.
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