L3 Capital signs $20M refi loan with Wintrust Bank for four properties in Williamsburg

L3 Capital through the entity L3 Berry And N 6 LLC as borrower signed a refi loan with lender Wintrust Bank valued at $20 million for four properties including the two-unit 1-4 family building (B3) at 113 North 6th Street in Williamsburg, Brooklyn, retail building (K1) at 111 North 6th Street in Williamsburg, Brooklyn, and mixed-use building (S1) at 115 North 6th Street in Williamsburg, Brooklyn.
The deal closed on June 16, 2022 and was recorded on July 15, 2022. The prior lender was Ladder Capital which held debt that had an original loan amount of $16.1 million. The four properties have 7,640 square feet of built space and 10,435 square feet of additional air rights for a total buildable of 18,075 square feet according to PincusCo analysis of city data. The loan price per built square foot is $2,617 and the price per buildable square foot is $1,106 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 L3 Capital was Domenic Lanni. The signatory for Wintrust Bank was Brian Callahan.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 111 North 6th Street.

Prior sales and revenue

Out of the four properties, one with a total of 7,640 square feet of built space generated revenue of $119,758 per year.

The property

The 111 North 6th Street parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. 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 $504,000.The most recent loan totaled $20 million and was provided by Wintrust Bank on June 16, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Williamsburg, the bulk, or 39 percent of the 50 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 8th highest sale turnover among other neighborhoods in the city with $1.5 billion in sales volume in the last two years. For development, Williamsburg is the 8th most active neighborhood among other neighborhoods. It had 5.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On the tax block of 111 North 6th Street, PincusCo has identified the owners of 18 of the 29 commercial properties representing 84,840 square feet of the 132,168 square feet. The largest owner is L3 Capital, followed by Wlodzimierz Grzybowski and then Eva Lesniak. There are no active new building construction projects on this tax block.

The majority, or 49 percent of the 131,328 square feet of built space are mixed-use buildings, with residential walkup buildings next occupying 24 percent of the space.

The borrower

The PincusCo database currently indicates that L3 Capital owned at least 35 commercial properties in New York City with 224,745 square feet and a city-determined market value of $73.5 million. (Market value is typically about 50% of actual value.) The portfolio has $258.3 million in debt, with top three lenders as JPMorgan Chase, Ladder Capital, and Wintrust Bank respectively. Within the portfolio, the bulk, or 57 percent of the 224,745 square feet of built space are mixed-use properties, with retail properties next occupying 33 percent of the space. The bulk, or 80 percent of the built space, is in Brooklyn, with Manhattan next at 20 percent of the space.

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