Lazer Derbarmdiger pays $6.3M for residential elevator in Williamsburg

Lazer Derbarmdiger through the entity Ld221 LLC paid $6.3 million to Huarong Zheng through the entity M-Dl Realty, Inc. for the 14-unit residential elevator building (D1) at 221 Middleton Street in Williamsburg, Brooklyn.
The deal closed on August 11, 2022 and was recorded on August 18, 2022. The property has 14,902 square feet of built space and 100 square feet of additional air rights for a total buildable of 15,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $422 and the price per buildable 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 June 23, 2005, for $650,000. The signatory for Huarong Zheng was Huarong Zheng. The signatory for Lazer Derbarmdiger was Lazer Derbarmdiger.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Lazer Derbarmdiger had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Huarong Zheng had not purchased any other properties and had not sold any properties over the same time period.

The property

The 221 Middleton Street parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,000 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $605,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received one DOB violation, $4,780 in ECB penalties, and $6,010 in OATH penalties in the last year.

Development

On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 28,429 square feet. The largest is a new building project for a six-unit, 14,929-square-foot R-2 building developed by David Zheng with plans filed September 11, 2014 and it has not been permitted yet. The second largest is a new building project for a 14-unit, 13,500-square-foot R-2 building developed by David Zheng with plans filed April 9, 2015 and it has not been permitted yet.

The block

On this tax block, PincusCo has identified the owners of three of the six commercial properties representing 102,980 square feet of the 122,382 square feet. The largest owner is Adam America Real Estate, followed by Isac Deutsch and then Southside United H.D.F.C..
There are two active new building construction projects totaling 28,429 square feet. The largest is a six-unit, 14,929-square-foot R-2 building developed by David Zheng with plans filed September 11, 2014 and it has not been permitted yet.The second largest is a 14-unit, 13,500-square-foot R-2 building developed by David Zheng with plans filed April 9, 2015 and permitted October 17, 2017.

the majority, or 93 percent of the 122,382 square feet of built space are elevator buildings, with walkup buildings next occupying 7 percent of the space.

The buyer

The PincusCo database currently indicates that Lazer Derbarmdiger owned at least one commercial property in New York City with 6,270 square feet and a city-determined market value of $1.5 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single C0 property. It is located in Bronx.

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