Investmates signs $10M construction loan with S3 Capital for project in Williamsburg

Investmates through the entity Williamsburg On 5th LLC as borrower signed a new construction loan with lender S3 Capital through the entity S3 Sb Real Estate Credit Ii Trust valued at $10 million for the specialty building (M1) at 199 North 5th Street in Williamsburg, Brooklyn.

On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 11,163 square feet. The largest, 321592754, is a new building project for a seven-unit, 8,096 square-foot R-2 building submitted by Koby Telyas with plans filed August 13, 2020 and it has not been permitted yet. The second largest, 321592772, is a new building project for a two-unit, 3,067 square-foot A-3 building submitted by Koby Telyas with plans filed August 13, 2020 and it has not been permitted yet.
The deal closed on January 8, 2025 and was recorded on February 27, 2025. The property has 4,290 square feet of built space and 7,125 square feet of additional air rights for a total buildable of 11,400 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $2,331 and the price per buildable square foot is $877 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 on January 8, 2025, for $4.3 million. The signatory for Investmates was Idan Shitrit.

The property

The specialty building in Williamsburg has 4,290 square feet of built space and 7,125 square feet of additional air rights for a total buildable of 11,400 square feet according to a PincusCo analysis of city data. The parcel has frontage of 57 feet and is 100 feet deep with a total lot size of 5,700 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $461,000.

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 not received any significant violations in the last year.

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 billion in sales volume in the last two years. For development, Williamsburg is the 10th most active neighborhood among other neighborhoods. It had 4.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other specialty buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of six of the 14 commercial properties representing 24,451 square feet of the 61,738 square feet. The largest owner is Howard Friedman, followed by Andrew Mokrzycki and then Veronica Serrano.
On the tax block, there were three new building construction projects totaling 16,139 square feet. The largest is a seven-unit, 8,096 square-foot residential (R-2) building submitted by Koby Telyas with plans filed August 13, 2020 and it has not been permitted yet. The second largest is a three-unit, 4,976 square-foot residential (R-2) building submitted by Jorge Mastropietro with plans filed September 30, 2016 and permitted April 18, 2019.

The majority, or 43 percent of the 61,738 square feet of built space are walkup buildings, with mixed-use buildings next occupying 36 percent of the space.

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