Jacob Schwimmer pays $4.2M for industrial in Williamsburg

Jacob Schwimmer through the entity 488 Broadway Realty LLC paid $4.2 million to Thomas Makkos through the entity Golden D Brand Meat Products Ltd. for the industrial building (F5) at 488 Broadway in Williamsburg, Brooklyn.
The deal closed on May 9, 2024 and was recorded on May 16, 2024. The property has 6,201 square feet of built space and 6,216 square feet of additional air rights for a total buildable of 12,432 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $685 and the price per buildable square foot is $341 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 signatory for Thomas Makkos was Thomas Makkos. The signatory for Jacob Schwimmer was Jacob Schwimmer. The contract date was May 9, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Jacob Schwimmer purchased four properties in four transactions for a total of $57.7 million and has no record he sold any properties over the past 24 months.
The seller Thomas Makkos purchased four properties in three transactions for a total of $6.9 million and sold one property in one transaction for a total of $1.6 million over the same time period.

The property

The industrial building in Williamsburg has 6,201 square feet of built space and 6,216 square feet of additional air rights for a total buildable of 12,432 square feet according to a PincusCo analysis of city data. The parcel has frontage of 42 feet and is 95 feet deep with a total lot size of 6,216 square feet. The lot is irregular. The zoning is C8-2 which allows for up to 2 times floor area ratio (FAR) for commercial. The city-designated market value for the property in 2022 is $555,000.

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 received four DOB violations, $6,250 in ECB penalties, and $6,250 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.

The block

On this tax block, PincusCo has identified the owners of two of the 10 commercial properties representing 85,324 square feet of the 187,440 square feet. The two identified owners are Abraham Mendlovic and Abraham Brach.
On the tax block, there were two new building construction projects totaling 115,902 square feet. The largest is a 24-unit, 73,681 square-foot residential (R-2) building submitted by Greenline Consultants and filed by Joseph Templer with plans filed March 24, 2023 and it has not been permitted yet. The second largest is a 42,221 square-foot 56 building submitted by Abraham Brach and filed by Abe Brach with plans filed January 30, 2023 and permitted February 29, 2024.

The majority, or 48 percent of the 187,440 square feet of built space are elevator buildings, with industrial buildings next occupying 28 percent of the space.

The seller

The PincusCo database currently indicates that Thomas Makkos owned at least six commercial properties with 32 residential units in New York City with 35,745 square feet and a city-determined market value of $18.9 million. (Market value is typically about 50% of actual value.) The portfolio has $5 million in debt, borrowed from Dime Community Bank and SKW Funding. Within the portfolio, the bulk, or 51 percent of the 35,745 square feet of built space are mixed-use properties, with walkup properties next occupying 49 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Jacob Schwimmer owned at least 17 commercial properties with 898 residential units in New York City with 854,868 square feet and a city-determined market value of $139.6 million. (Market value is typically about 50% of actual value.) The portfolio has $527.5 million in debt, with top three lenders as Valley National Bank, MF1 Capital, and Spruce Capital respectively. Within the portfolio, the bulk, or 45 percent of the 854,868 square feet of built space are office properties, with elevator properties next occupying 42 percent of the space. The bulk, or 66 percent of the built space, is in Brooklyn, with Bronx next at 34 percent of the space.

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