Peak Capital Advisors pays $3.2M for mixed-use in Williamsburg

Peak Capital Advisors through the entity 520 Union Owner LLC paid $3.2 million to Linda Astore, Frances Farino and others, for the five-unit mixed-use building (S5) at 520 Union Avenue in Williamsburg, Brooklyn.
The deal closed on March 15, 2023 and was recorded on March 21, 2023. The property has 5,300 square feet of built space and 2,200 square feet of additional air rights for a total buildable of 7,500 square feet according to PincusCo analysis of city data. The sale price per built square foot is $599 and the price per buildable 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 Linda Astore and Frances Farino was Linda Astore and Frances Farino. The signatory for Peak Capital Advisors was Alex Rabin.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Peak Capital Advisors purchased 22 properties in 19 transactions for a total of $116 million and has no record it sold any properties over the past 24 months.
The seller Linda Astore had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Anna Farino, individual owner and Jason Mckoy, site manager. The 5,300-square-foot property generated revenue of $102,343 or $19 per square foot, according to the most recent income and expense figures.

The property

The 520 Union 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 city-designated market value for the property in 2022 is $1.9 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 $100 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 49.7 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 $2.3 billion in sales volume in the last two years. For development, Williamsburg is the 6th most active neighborhood among other neighborhoods. It had 4.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the 10 commercial properties representing 42,092 square feet of the 125,760 square feet. The two identified owners are Yitzchok Schwartz and James Tenaglia.
On the tax block, there was one new building construction project filed totaling 26,389 square feet. It is a 37-unit, 26,389-square-foot R-2 building developed by Adam Westreich with plans filed October 21, 2015.

The majority, or 61 percent of the 125,760 square feet of built space are elevator buildings, with hotel buildings next occupying 15 percent of the space.

The buyer

The PincusCo database currently indicates that Peak Capital Advisors owned at least 29 commercial properties in New York City with 264,727 square feet and a city-determined market value of $66.6 million. (Market value is typically about 50% of actual value.) The portfolio has $94.7 million in debt, with top three lenders as Amalgamated Bank, Prime Finance Partners, and Prime Finance respectively. Within the portfolio, the bulk, or 92 percent of the 264,727 square feet of built space are walkup properties, with mixed-use properties next occupying 8 percent of the space. The bulk, or 39 percent of the built space, is in Brooklyn, with Queens next at 38 percent of the space.

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