Nathan Obstfeld pays $12M to Related for 53-unit walkup in Williamsburg

Nathan Obstfeld through the entity 442 Lorimer Ny LLC paid $12 million to Related Companies through the entity Nysandy14 Williamsburg 3 LLC for the 53-unit residential walkup building (C7) at 442 Lorimer Street in Williamsburg, Brooklyn. The expected use is cash flowing.
The deal closed on October 2, 2024 and was recorded on October 10, 2024. The property has 48,000 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $250 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 seller bought the property on June 14, 2016, for $25.5 million. The signatory for Related Companies was Matthew Becker. The signatory for Nathan Obstfeld was Nuchem Obstfeld, who is the same person. The contract date was June 10, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Nuchem Obstfeld purchased five properties in four transactions for a total of $42.2 million and sold one property in one transaction for a total of $13.5 million over the past 24 months.
The seller Related Companies purchased five properties in three transactions for a total of $14.7 million and sold 16 properties in 15 transactions for a total of $868.3 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Dennis Ovalle, head officer and Natasha Davis, site manager. The business entity is Nysandy14 Williamburg 3 Llc.

The property

The residential walkup building with 53 residential units in Williamsburg has 48,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 80 feet deep with a total lot size of 8,000 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $5.5 million. Related Companies bought the debt on the building on December 15, 2023. The property has 10 rent regulated units according to city tax records from 2023.

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, 47 housing violations, and $150 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 10 of the 14 commercial properties representing 139,305 square feet of the 157,080 square feet. The largest owner is Watermark Capital Group, followed by Related Companies and then Jacob Rubin.
There are no active new building construction projects on this tax block.

The majority, or 98 percent of the 157,080 square feet of built space are walkup buildings, with mixed-use buildings next occupying 2 percent of the space.

The seller

The PincusCo database currently indicates that Related Companies owned at least 176 commercial properties with 9,622 residential units in New York City with 21,240,766 square feet and a city-determined market value of $6 billion. (Market value is typically about 50% of actual value.) The portfolio has $5.9 billion in debt, with top three lenders as Wells Fargo, Carlyle Group, and MetLife respectively. Within the portfolio, the bulk, or 44 percent of the 21,240,766 square feet of built space are elevator properties, with office properties next occupying 30 percent of the space. The bulk, or 61 percent of the built space, is in Manhattan, with Bronx next at 23 percent of the space.

The buyer

The PincusCo database currently indicates that Nuchem Obstfeld owned at least 11 commercial properties with 244 residential units in New York City with 232,944 square feet and a city-determined market value of $35.7 million. (Market value is typically about 50% of actual value.) The portfolio has $47.4 million in debt, with top three lenders as Signature Bank, Customers Bank, and Hakimian Partners respectively. Within the portfolio, the bulk, or 53 percent of the 232,944 square feet of built space are walkup properties, with elevator properties next occupying 44 percent of the space. The bulk, or 59 percent of the built space, is in Brooklyn, with Bronx next at 24 percent of the space.

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