Patoma Inc. pays $4.3M for development site in Williamsburg

Patoma Inc. through the entity 6 Havemeyer LP paid $4.3 million to Donna Morawiec through the entity 6-8 Havemeyer Realty LLC for the midblock development site at 8 Havemeyer Street in Williamsburg, Brooklyn and midblock development site at 6 Havemeyer Street in Williamsburg, Brooklyn.
The deal closed on December 29, 2021 and was recorded on March 28, 2022. The two properties have zero square feet of built space and 10,275 square feet of additional air rights for a total buildable of 10,275 square feet according to PincusCo analysis of city data. The sale price per built square foot is $423 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 Donna Morawiec was Donna Morawiec. The signatory for Patoma Inc. was Paul Henry. Patoma Inc. is located at the same address as buyer LLC. 

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 8 Havemeyer Street.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Patoma Inc. had purchased any other properties and sold one properties in one transactions for a total of $4 million over the past 24 months.
The seller Donna Morawiec had not purchased any other properties and had not sold any properties over the same time period.

The property

The 8 Havemeyer Street parcel has frontage of 25 feet and is 67 feet deep with a total lot size of 1,825 square feet. The lot is irregular. 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 $460,000.

Violations and lawsuits

The properties were not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

On these lots, there are three active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 20,866 square feet. The largest is a new building project for a 13-unit, 8,910-square-foot R-2 building developed by Donna Morawiec with plans filed December 11, 2017 and it has not been permitted yet. The second largest is a new building project for a three-unit, 5,978-square-foot R-2 building developed by Thomas Finnican with plans filed March 18, 2022 and it has not been permitted yet.

The neighborhood

In Williamsburg, the bulk, or 35 percent of the 65.1 million square feet of commercial 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.

The block

On the tax block of 8 Havemeyer Street, PincusCo has identified the owners of nine of the 16 commercial properties representing 117,680 square feet of the 195,500 square feet. The largest owner is Isaac Schwartz, followed by Fred Gelfand and then Charles Schwartz. There are four active new building construction projects totaling 34,291 square feet. The largest is a 10-unit, 13,425-square-foot R-2 building developed by Idan Shitrit with plans filed February 8, 2019 and permitted December 27, 2019. The second largest is a 13-unit, 8,910-square-foot R-2 building developed by Donna Morawiec with plans filed December 11, 2017 and it has not been permitted yet.

The majority, or 38 percent of the 197,000 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 28 percent of the space.

The buyer

The PincusCo database currently indicates that Patoma Inc. owned at least four commercial properties with 16,680 square feet and a city-determined market value of $9.3 million. (Market value is typically about 50% of actual value.) The portfolio has $9.1 million in debt, borrowed from Popular Bank. Within the portfolio, all identified are 1-4 family properties. They are all located in Brooklyn.

Surrounding

Within a 400-foot radius of 8 Havemeyer Street, Pincusco identified 14 commercial real estate items of interests occurred over the past 24 months.
Of those 14 items, two were in new building development. There were two new building permits. The most recent of these two items was a permit on September 14, 2021 for a 15,931-square-foot R-2 building with 23 residential units at 5 Withers Street.
Of those 14 items, three were sales above $5 million totaling $295.3 million. The most recent of the three was HUBB NYC which bought the 88,797-square-foot, 104-unit rental (D3) on 246 North 8th Street and one other property for $116.2 million from Greystar on December 30, 2021.
Of those 14 items, nine were loans above $5 million totaling $305.6 million. The most recent of the nine was HUBB NYC which borrowed $66.1 million from M&T Bank secured by the 88,797-square-foot, 104-unit rental (D3) on 246 North 8th Street and one other property on December 30, 2021.

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