Michael Lipman pays $5.9M to Joel Schwartz for 50% stake in 9-unit walkup in Williamsburg

Michael Lipman through the entity 415 Manhattan Realty LLC, paid $5.9 million to Joel Schwartz of Manhattan Ave Units LLC for a 50 percent tenant-in-common stake in the the midblock nine-unit residential walkup building at 415 Manhattan Avenue in Williamsburg, Brooklyn. Schwartz owns the other 50 percent stake.
The deal closed on February 22, 2022 and was recorded on March 11, 2022.The property has 8,138 square feet of built space according to PincusCo analysis of city data.
The seller bought the property on September 20, 2018, for $2.4 million.

The property

The 415 Manhattan Avenue parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 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 most recent loan totaled $6.9 million and was provided by BridgeCity Capital on October 8, 2021.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $30,050 in ECB penalties and $30,100 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 10-unit, 6,749-square-foot R-2 building. The project was developed by Joel Schwartz with plans filed November 26, 2013 and permitted March 3, 2021.

The neighborhood

In Williamsburg, the bulk, or 35 percent of the 65.1 million square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 19 percent of the space. In sales, Williamsburg has the 9th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Williamsburg is the 6th most active neighborhood among other neighborhoods. It had 5.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space. There were eight pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of five of the 14 commercial properties representing 29,673 square feet of the 155,551 square feet. The largest owner is Chaskel Babad, followed by Victor Celli and then Hubert Nowakowski. There is one active new building construction project totaling 6,749 square feet. It is for this property, the 6,749-square-foot R-2 building developed by Joel Schwartz with plans filed November 26, 2013 and permitted March 3, 2021.

The majority, or 52 percent of the 162,805 square feet of built space are industrial buildings, with residential walkup buildings next occupying 23 percent of the space.

Surrounding

Within a 400-foot radius of 415 Manhattan Avenue, Pincusco identified 11 commercial real estate items of interests occurred over the past 24 months.
Of those 11 items, one was in new building development. It was a new building permit issued on June 3, 2021 for a 22,270-square-foot R-2 building with 33 residential units at 411 Meeker Avenue.
Of those 11 items, two were for major renovation including a certificate of occupancy change. They were one permit applications with a total initial cost of $600,000 and one permit with a total initial cost of $1.4 million. The most recent of these two items was the permit on October 20, 2020 for a 7,919-square-foot R-2 building with 10 residential units at 391 Meeker Avenue.
One of those 11 items was a sale which Sidharth Lakhani bought the 19,674-square-foot, 27-unit rental (D3) on 137 Bayard Street for $17.8 million from Solomon Feder on January 13, 2022.
Of those 11 items, seven were loans above $5 million totaling $114.3 million. The most recent of the seven was Blank Property Group which borrowed $25.3 million from RCG Longview and CenterSquare Investment Management secured by the 7,786-square-foot, two-unit two-family building (B9) on 136 Bayard Street and 11 other properties on February 22, 2022.

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