Jesse Chan pays $2.5M to Oak Tree Residential for 8-unit walkup in Williamsburg

Jesse Chan through the entity Jth N. 6th, LLC paid $2.5 million to Oak Tree Residential through the entity Ota 262 N. 6th, LLC for the eight-unit residential walkup building (C1) at 262 North 6th Street in Williamsburg, Brooklyn. The expected use is cash flowing.
The deal closed on September 13, 2024 and was recorded on September 24, 2024. The property has 6,000 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $420 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 October 12, 2017, for $3 million. The signatory for Oak Tree Residential was Jeremiah Lucey. The signatory for Jesse Chan was Jesse Chan. The contract date was June 7, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Jesse Chan had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Oak Tree Residential had not purchased any other properties and sold one properties in one transaction for a total of $2.9 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Richard Rosan, head officer and Jeremiah Lucey, officer. The business entities are Oak Tree Management, Ltd and Ota 262 N. 6th Llc.

The property

The residential walkup building with 8 residential units in Williamsburg has 6,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 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 $2.1 million. The property has 6 rent regulated units according to city tax records from 2023.

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 $400 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 block

On this tax block, PincusCo has identified the owners of 10 of the 16 commercial properties representing 93,232 square feet of the 111,757 square feet. The largest owner is Double U Realty, followed by Oak Tree Residential and then Peak Capital Advisors.
There are no active new building construction projects on this tax block.

The majority, or 51 percent of the 111,757 square feet of built space are walkup buildings, with elevator buildings next occupying 38 percent of the space.

The seller

The PincusCo database currently indicates that Oak Tree Residential owned at least 22 commercial properties with 299 residential units in New York City with 250,783 square feet and a city-determined market value of $39.5 million. (Market value is typically about 50% of actual value.) The portfolio has $39.3 million in debt, borrowed from Metropolitan Commercial Bank. Within the portfolio, the bulk, or 80 percent of the 250,783 square feet of built space are walkup properties, with elevator properties next occupying 16 percent of the space. The bulk, or 84 percent of the built space, is in Brooklyn, with Manhattan next at 16 percent of the space.

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