LCOR signs $33.8M refi with KeyBank for 142-unit rental in Williamsburg

LCOR through the entity 34 Berry Street LLC as borrower signed a refi loan with lender KeyBank valued at $33.8 million for the 142-unit residential elevator building (D3) at 34 Berry Street in Williamsburg, Brooklyn.
The deal closed on April 28, 2023 and was recorded on May 3, 2023. The prior lender was Northwestern Mutual Life Insurance which held debt that had an original loan amount of $31 million.
The property has 149,425 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $226 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 owner bought the property on December 21, 2007, for $16.3 million. The signatory for LCOR was Jacob Albano. The signatory for KeyBank was Kelly Blodgett. The Northwestern loan was satisfied in 2021.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes David Sigman, head officer and Colin Mayers, officer. The business entities are LCOR Asset Management Limited Partner and 34 Berry Street LLC. The 149,425-square-foot property generated revenue of $5.4 million or $36 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 142 residential units in Williamsburg has 149,425 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 119 feet and is 225 feet deep with a total lot size of 35,999 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 property has a 421A exemption that started in 2012 and expires in 2027. The city-designated market value for the property in 2022 is $30.6 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 and $50 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of one of the three commercial properties representing 149,425 square feet of the 196,232 square feet. The identified owner is LCOR.
There are no active new building construction projects on this tax block.

The majority, or 76 percent of the 196,232 square feet of built space are elevator buildings, with industrial buildings next occupying 24 percent of the space.

The borrower

The PincusCo database currently indicates that LCOR owned at least five commercial properties with 471 residential units in New York City with 159,165 square feet and a city-determined market value of $38 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 94 percent of the 159,165 square feet of built space are elevator properties, with mixed-use properties next occupying 6 percent of the space. They are all located in Brooklyn.

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