Jacob Fulop pays $23M to Acuity Capital for office in Williamsburg

Jacob Fulop of Broadway Square NYC LLC paid $23 million to Acuity Capital Partners through its 545 Broadway Associates LLC for office building at 545 Broadway in Williamsburg, Brooklyn.
The deal closed on April 29, 2022 and was recorded on June 1, 2022. The property has 52,648 square feet of built space and 6,936 square feet of additional air rights for a total buildable of 59,649 square feet according to PincusCo analysis of city data. The sale price per built square foot is $436 and the price per buildable square foot is $385 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 December 14, 2018, for $22.4 million. Elliot Neumann is CEO of Acuity Capital Partners.

Prior sales and revenue

The 52,648-square-foot property generated revenue of $1.1 million or $21 per square foot, according to the most recent income and expense figures.

The property

The 545 Broadway parcel has frontage of 290 feet and is 114 feet deep with a total lot size of 17,340 square feet. The lot is irregular. The zoning is C4-4 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 3.44 times FAR for residential. The city-designated market value for the property in 2022 is $6.1 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.

Development

On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 502,639 square feet. The largest is a new building project for a 226-unit, 283,731-square-foot R-2 building developed by Jason Buchheit with plans filed November 22, 2016 and it has not been permitted yet. The second largest is a major alteration project for a zero-unit, 283,433-square-foot B building developed by Jason Buchheit with plans filed September 28, 2015 and it has not been permitted yet.

The neighborhood

In Williamsburg, the bulk, or 35 percent of the 65.1 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 19 percent of the space. In sales, Williamsburg has the 9th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Williamsburg is the 6th most active neighborhood among other neighborhoods. It had 5.1 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.

The block

On this tax block, PincusCo has identified the owners of one of the three commercial properties of the 54,448 square feet. The identified owner is Joyland Group. There are three active new building construction projects totaling 822,110 square feet. The largest is a 551-unit, 296,367-square-foot R-2 building developed by Simon Koster with plans filed June 27, 2019 and it has not been permitted yet. The second largest is a 226-unit, 283,731-square-foot R-2 building developed by Jason Buchheit with plans filed November 22, 2016 and it has not been permitted yet.

The majority, or 100 percent of the 52,648 square feet of built space are office buildings.

Surrounding

Within a 400-foot radius of 545 Broadway, PincusCo identified four commercial real estate items of interests occurred over the past 24 months.
Of those four items, one was in new building development. It was a new building permit application filed on January 25, 2022 for a 203,489-square-foot R-2 building with 274 residential units at 275 Lorimer Street.
One of those four items was a sale which Loketch Group, Joyland Group, and Meral Property Group bought the 0-square-foot development site (V1) on 268 Lorimer Street for $53.9 million from The Collective on February 1, 2022.
Of those four items, two were loans above $5 million totaling $54 million. The most recent of the two was Loketch Group, Joyland Group, and Meral Property Group which borrowed $47 million from Slate Property Group secured by the 0-square-foot development site (V1) on 268 Lorimer Street on February 1, 2022.

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