Joyland pays $45.3M to L3 Capital for Williamsburg dev site

Joyland Group through the entity Kesef Tziri LLC paid $45.3 million to L3 Capital through the entity L3 Kent Assemblage LLC for the development site (V1) at 133 Kent Avenue in Williamsburg, Brooklyn.
The deal closed on November 27, 2024 and was recorded on December 4, 2024. The contract date was February 6, 2024. The property has 5,000 square feet of built space and 55,000 square feet of additional air rights for a total buildable of 60,000 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $754 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.)

To finance the purchase, the new owner obtained an $85 million new construction and acquisition loan from S3 Capital.
The signatory for the buyer was Joel Wertzberger.
Ten31 Media first reported the sale on X.

The seller bought the property on December 26, 2019, for $28.4 million.

The property

The parcel has frontage of 75 feet and is 125 feet deep with a total lot size of 20,000 square feet. The lot is irregular. 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 $323,000. The most recent loan totaled $90.5 million and was provided by Ladder Capital on December 26, 2019.

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 not received any significant violations in the last year.

Development

On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 31,261 square feet. The largest, B00624212, is a new building project for a 18-unit, 26,936 square-foot R-2 building submitted by L3 Capital and filed by Domenic Lanni with plans filed November 30, 2021 and permitted May 13, 2022. The second largest, 340768869, is a new building project for a 4,325 square-foot M building submitted by Domenic Lanni with plans filed September 23, 2020 and it has not been permitted yet.

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 $1.9 billion in sales volume in the last two years. For development, Williamsburg is the 10th most active neighborhood among other neighborhoods. 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 11 of the 21 commercial properties representing 82,385 square feet of the 112,885 square feet. The largest owner is Bruce Ratner Family, followed by Afshan Shariati and then Ryco Capital.
On the tax block, there were four new building construction projects totaling 39,184 square feet. The largest is a 18-unit, 26,936 square-foot residential (R-2) building submitted by L3 Capital and filed by Domenic Lanni with plans filed November 30, 2021 and permitted May 13, 2022. The second largest is a 4,325 square-foot mercantile (M) building submitted by Domenic Lanni with plans filed November 20, 2020 and it has not been permitted yet.

The majority, or 35 percent of the 112,885 square feet of built space are elevator buildings, with mixed-use buildings next occupying 29 percent of the space.

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