Pacific Premier provides Thorofare “loan-on-loan” financing at CODA Williamsburg hotel

Irvine, California-based Pacific Premier Bank provided a “loan-on-loan” to lender Thorofare Capital which earlier this year provided Empire Capital Holdings a $15.6 million loan secured by the 64-room CODA Williamsburg hotel (HB) at 160 North 12th Street in Williamsburg, Brooklyn.
The loan-on-loan deal closed on November 21, 2022 and was recorded on November 30, 2022. The property has 25,059 square feet of built space and 1,980 square feet of additional air rights for a total buildable of 27,000 square feet according to PincusCo analysis of city data.
The owner bought the property on October 21, 2016, for $20.2 million.

The property

The 156 North 12th Street parcel has frontage of 75 feet and is 120 feet deep with a total lot size of 9,000 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 $12.8 million. The most recent loan totaled $15.6 million and was provided by Thorofare Capital on February 25, 2022.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $2.5 million money judgment concerning a unpaid rents filed on February 22, 2021, against MIJ Hotels. In addition, according to city public data, the property has received $14,875 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 $5 million on this tax lot.

The neighborhood

In Williamsburg, the bulk, or 39 percent of the 50 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 6th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, Williamsburg is the 7th most active neighborhood among other neighborhoods. It had 5 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 10 of the 30 commercial properties representing 134,017 square feet of the 187,027 square feet. The largest owner is Empire Capital Holdings, followed by Atlas Feather and then Icon Realty Management.
There are no active new building construction projects on this tax block.

The majority, or 38 percent of the 157,267 square feet of built space are elevator buildings, with walkup buildings next occupying 30 percent of the space.

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