Lenders pick up 41-unit Williamsburg rental from Heritage Equity following bankruptcy

A former mezzanine lender through the entity 227 Grand JFL Holdings LLC paid $41.5 million through a credit bid and additional funding to acquire from Heritage Equity Partners through the entity Grand Living, LLC the 41-unit rental condo at 227 Grand Street in Williamsburg, Brooklyn.
The deal closed on October 14, 2022 and was recorded on October 20, 2022. The two condominium units compose the 80,531 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $515 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 the seller entity, representing the former owners Heritage Equity Partners was Mark S. Lichtenstein. The signatory for the buyer was Leeor Amsalem. The Real Deal first reported on the bankruptcy 19-23957-shl sale of Heritage Equity Partners’ building to the lender, and said Hutton Capital’s Ron Friedman, Rosewood Realty’s Aaron Jungreis and BridgeCity Capital’s Allan Lebovits were parties who owned the mezzanine loan.

The property

The 227 Grand Street parcel has a total lot size of 80,531 square feet. The property has a 421A exemption that started in 2013 and expires in 2028. The city-designated market value for the property in 2022 is $12.2 million.

Development

For the tax lot buildings, one out of the two buildings received an initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On the tax block, the majority, or 82 percent of the 24,841 square feet of built space are mixed-use buildings, with retail buildings next occupying 15 percent of the space.

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