Joel Schwartz pays $3.5M for dev site in Williamsburg

Developer Joel Schwartz through the entity 436 Union Ave LLC paid $3.5 million to Marek Kaczor through the entity 436 Union LLC for the six-unit mixed-use building (S5) at 436 Union Avenue in Williamsburg, Brooklyn. The expected use is cash flowing.
On the lot, there is one active new building construction project, B00742563, for a 13-unit, 8,697 square-foot R-2 building. The project was submitted by Yisroel Greenfeld with plans filed June 15, 2022 and it has not been permitted yet.
The deal closed on December 16, 2024 and was recorded on December 24, 2024. The property has 3,750 square feet of built space and 6,975 square feet of additional air rights for a total buildable of 10,732 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $933 and the price per buildable square foot is $326 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 Marek Kaczor was Avi Rosengarten. The signatory for Joel Schwartz was Joel Schwartz. The contract date was July 15, 2022. Avi Rosengarten is an attorney.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Joel Schwartz purchased 16 properties in 15 transactions for a total of $57.5 million and sold 12 properties in 12 transactions for a total of $99.5 million over the past 24 months.
The seller Marek Kaczor purchased one property in one transaction for a total of $2 million and sold one property in one transaction for a total of $2.2 million over the same time period. The former owner according to the Department of Housing Preservation and Development is Marek Kaczor, head officer. The business entity is 436 Union Llc. The 3,750-square-foot property generated revenue of $85,725 or $23 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building with 6 residential units in Williamsburg has 3,750 square feet of built space and 6,975 square feet of additional air rights for a total buildable of 10,732 square feet according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 107 feet deep with a total lot size of 2,683 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.4 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 one DOB violation 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 5th 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 4.3 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 12 of the 27 commercial properties representing 82,635 square feet of the 164,182 square feet. The largest owner is Green Street Group, followed by Manjula Mukahopadhyay and then Maria Dente.
On the tax block, there was one new building construction project filed totaling 8,697 square feet. It is a 13-unit, 8,697 square-foot residential (R-2) building submitted by Yisroel Greenfeld with plans filed June 15, 2022 and it has not been permitted yet.

The majority, or 47 percent of the 164,182 square feet of built space are walkup buildings, with mixed-use buildings next occupying 34 percent of the space.

The seller

The PincusCo database currently indicates that Marek Kaczor owned at least seven commercial properties with 37 residential units in New York City with 28,922 square feet and a city-determined market value of $11.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 55 percent of the 28,922 square feet of built space are mixed-use properties, with walkup properties next occupying 40 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Joel Schwartz owned at least 93 commercial properties with 1,450 residential units in New York City with 1,049,146 square feet and a city-determined market value of $180.3 million. (Market value is typically about 50% of actual value.) The portfolio has $1.3 billion in debt, with top three lenders as BridgeCity Capital, Citibank, and Deutsche Bank respectively. Within the portfolio, the bulk, or 58 percent of the 1,049,146 square feet of built space are elevator properties, with walkup properties next occupying 16 percent of the space. They are all located in Brooklyn.

Direct link to Acris document. link