Heatherwood signs $33.2M refi with Walker & Dunlop for 95-unit rental in Williamsburg

Heatherwood Luxury Rentals through the entity 544 Union DE LLC as borrower signed a refi loan with lender Walker & Dunlop valued at $33.2 million for the 95-unit residential elevator building (D6) at 544 Union Avenue in Williamsburg, Brooklyn.
The deal closed on April 26, 2024 and was recorded on April 30, 2024. The prior lender was a securitized entity with the name Series 2015-K43 which held debt that had an original loan amount of $39.1 million.

The property has 119,598 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $277 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 owner bought the property as an in-process development on October 4, 2010, for $13.5 million, the constructed this building. The signatory for Heatherwood Luxury Rentals was Douglas S. Patrick. The signatory for Walker & Dunlop was Paula Battista.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Douglas Patrick, head officer and Vincent Sutera, officer. The business entities are 544 Union Ave., Llc and 544 Union Ave., Llc.

The property

The residential elevator building with 95 residential units in Williamsburg has 119,598 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 205 feet deep with a total lot size of 37,740 square feet. The lot is irregular. 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 property has a 421A exemption that started in 2012 and expires in 2027. The city-designated market value for the property in 2022 is $21.1 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 $1,010 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on November 12, 2013. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On the tax block, there was one new building construction project filed totaling 5,117 square feet. It is a two-unit, 5,117 square-foot residential (R-3) building submitted by Jarrett Huddleston with plans filed June 28, 2013 and permitted April 12, 2016.

The majority, or 59 percent of the 203,924 square feet of built space are elevator buildings, with walkup buildings next occupying 20 percent of the space.

The borrower

The PincusCo database currently indicates that Heatherwood Luxury Rentals owned at least five commercial properties with 883 residential units in New York City with 944,505 square feet and a city-determined market value of $214.1 million. (Market value is typically about 50% of actual value.) The portfolio has $99.9 million in debt, borrowed from Walker & Dunlop and PNC Bank. Within the portfolio, all identified are elevator properties. The bulk, or 65 percent of the built space, is in Queens, with Brooklyn next at 35 percent of the space.

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