Meadow Partners pays $17.5M for two buildings with 55 units in Williamsburg

Meadow Partners paid $17.5 million for two adjacent loft buildings in Williamsburg that have a combined 55 residential units and that share an elevator from Morris Feldman in two separate transactions. The buildings, regulated under the city’s loft law as interim multiple dwellings or IMD buildings, are undergoing a legalization process started by the former owner, which will continue, according to people familiar with the transaction.

In the first, Meadow Partners through the entity 77-83 Roebling Owner LLC paid $10.5 million to Morris Feldman through the entity Lido Knitting Mills, Inc., for 31-unit residential building (C1) at 77-83 Roebling Street in Williamsburg, Brooklyn.
The deal closed on October 13, 2022 and was recorded on October 21, 2022. The property has 33,750 square feet of built space and 3,750 square feet of additional air rights for a total buildable of 37,500 square feet according to PincusCo analysis of city data. The sale price per built square foot is $311 and the price per buildable square foot is $280 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 Morris Feldman was Morris Feldman. The signatory for Meadow Partners was Timothy P. Yantz.

In the second, Meadow Partners through the entity 65-75 Roebling Owner LLC paid $7 million to Morris Feldman through the entity Lido Knitting Mills, Inc. for 24-unit residential building (C7) at 65-75 Roebling Street in Williamsburg, Brooklyn. The deal closed on October 13, 2022 and was recorded on October 21, 2022.The property has 32,000 square feet of built space and 5,500 square feet of additional air rights for a total buildable of 37,500 square feet according to PincusCo analysis of city data. The sale price per built square foot is $218 and the price per buildable square foot is $186 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 Morris Feldman was Morris Feldman. The signatory for Meadow Partners was Timothy P. Yantz.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Meadow Partners purchased nine properties in eight transactions for a total of $829.1 million and sold seven properties in six transactions for a total of $153.8 million over the past 24 months.
The seller Morris Feldman had not purchased any other properties and had not sold any properties over the same time period. The 33,750-square-foot property generated revenue of $1 million or $31 per square foot, according to the most recent income and expense figures.

The property

The 77-83 Roebling Street parcel has frontage of 100 feet and is 125 feet deep with a total lot size of 12,500 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 $5.5 million.

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 five DOB 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 block

On this tax block, PincusCo has identified the owners of five of the nine commercial properties representing 166,925 square feet of the 270,425 square feet. The largest owner is Hubb Nyc, followed by Joel Mizrahi and then Zalmen Biderman.
There are no active new building construction projects on this tax block.

The majority, or 56 percent of the 270,425 square feet of built space are elevator buildings, with walkup buildings next occupying 44 percent of the space.

The seller

The PincusCo database currently indicates that Morris Feldman owned at least two commercial properties in New York City with 86,480 square feet and a city-determined market value of $11 million. (Market value is typically about 50% of actual value.) The portfolio has $8.8 million in debt, borrowed from Axos Bank. Within the portfolio, the bulk, or 57 percent of the 86,480 square feet of built space are walkup properties, with elevator properties next occupying 43 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Meadow Partners owned at least 37 commercial properties in New York City with 1,563,985 square feet and a city-determined market value of $401.7 million. (Market value is typically about 50% of actual value.) The portfolio has $656.8 million in debt, with top three lenders as Fortress Investment Group, Deutsche Pfandbriefbank, and Sterling National Bank respectively. Within the portfolio, the bulk, or 52 percent of the 1,563,985 square feet of built space are office properties, with elevator properties next occupying 18 percent of the space. The bulk, or 61 percent of the built space, is in Manhattan, with Brooklyn next at 39 percent of the space.

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