Lightstone Group signs $86M refi with Western Alliance Bank for Moxy hotel in Williamsburg
Lightstone Group through the entity Bedford Avenue Associates LLC as borrower signed a refi loan with lender Western Alliance Bank valued at $86 million for the hotel building (H2) at 361 Bedford Avenue in Williamsburg, Brooklyn, occupied by Marriott International’s Moxy Brooklyn Williamsburg.
The deal closed on April 19, 2024 and was recorded on April 23, 2024. The prior lender was G4 Capital Partners which held debt that had an original loan amount of $68 million.
The property has 61,891 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $1,389 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 July 17, 2019, for $15 million. The signatory for Lightstone Group was Joseph E. Teichman. The signatory for Western Alliance Bank was Armando Estrada.
The property
The hotel building in Williamsburg has 61,891 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 159 feet and is 100 feet deep with a total lot size of 15,900 square feet. The zoning is M1-2/R6 which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $4.9 million. The most recent loan totaled $68 million and was provided by G4 Capital Partners on August 4, 2021.
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 $1,310 in OATH penalties in the last year.
Development
On the lot, there is one active new building construction project for a 216-unit, 64,390 square-foot hotel (R-1) building. The project was submitted by Lightstone Group and filed by David Duvoisin with plans filed May 12, 2017 and permitted February 5, 2021.
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 4th highest sale turnover among other neighborhoods in the city with $2.2 billion in sales volume in the last two years. For development, Williamsburg has 4.1 times the average amount of major developments relative to other neighborhoods and is the 2nd highest in Brooklyn. 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 six of the 10 commercial properties representing 150,712 square feet of the 155,740 square feet. The largest owner is Shlomo Karpen, followed by Mordechai Halberstam and then Lightstone Group.
On the tax block, there was one new building construction project filed totaling 64,390 square feet. It is a 216-unit, 64,390 square-foot hotel/dormitory/shelter (R-1) building submitted by Lightstone Group and filed by David Duvoisin with plans filed May 12, 2017 and permitted February 5, 2021.
The majority, or 40 percent of the 155,740 square feet of built space are hotel buildings, with walkup buildings next occupying 28 percent of the space.
The borrower
The PincusCo database currently indicates that Lightstone Group owned at least 33 commercial properties with 1,938 residential units in New York City with 2,338,149 square feet and a city-determined market value of $325.9 million. (Market value is typically about 50% of actual value.) The portfolio has $1.6 billion in debt, with top three lenders as JLL, Goldman Sachs, and JPMorgan Chase respectively. Within the portfolio, the bulk, or 74 percent of the 2,338,149 square feet of built space are elevator properties, with hotel properties next occupying 21 percent of the space. The bulk, or 45 percent of the built space, is in Bronx, with Manhattan next at 28 percent of the space.
Direct link to Acris document. link