Joel Schwartz pays $3.8M for dev site in Williamsburg, gets $9M construction loan

Joel Schwartz through the entity 6 Havemeyer Street LLC paid $3.8 million to Paul Henry’s Patoma Inc. through the entity 6 Havemeyer LP for the development site (V1) at 6 and 8 Havemeyer Street in Williamsburg, Brooklyn.
The deal closed on April 17, 2024 and was recorded on April 29, 2024. The two properties have zero square feet of built space and 10,056 square feet of additional air rights for a total buildable of 10,056 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $381 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.)
Joel Schwartz obtained $9 million in financing from BridgeCity Capital. The $9 million loan is composed of a $3.5 million acquisition loan, a $4.37 million building loan and a $1.1 million project loan.

The property

The zoning is M1-2/R6A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $529,000. The most recent loan totaled $6.5 million and was provided by Emerald Creek Capital on April 15, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have 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 $2.2 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 the tax block of 8 Havemeyer Street, PincusCo has identified the owners of 11 of the 15 commercial properties representing 110,255 square feet of the 182,075 square feet. The largest owner is Anthony Mangone, followed by Daniel Shuster and then Elie Levy.
On the tax block, there were three new building construction projects totaling 20,866 square feet. The largest is a 13-unit, 8,910 square-foot residential (R-2) building submitted by Donna Morawiec with plans filed December 11, 2017 and it has not been permitted yet. The second largest is a three-unit, 5,978 square-foot residential (R-2) building submitted by Thomas Finnican with plans filed March 18, 2022 and it has not been permitted yet.

The majority, or 33 percent of the 182,075 square feet of built space are elevator buildings, with industrial buildings next occupying 30 percent of the space.

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