Penn South Capital pays $3.1M for 4-unit in Williamsburg

Penn South Capital through the entity 175 S 4 RLA LLC paid $3.1 million to Abraham Bernat through the entity 175 South 4th LLC for the four-unit building (C3) at 175 South 4th Street in Williamsburg, Brooklyn. The expected use is cash flowing.
The deal closed on January 14, 2025 and was recorded on January 21, 2025. The property has 3,520 square feet of built space and 1,567 square feet of additional air rights for a total buildable of 5,078 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $873 and the price per buildable square foot is $605 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 Abraham Bernat was Abraham Bernat. The signatory for Penn South Capital was Parag Sawhney. The contract date was December 14, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Penn South Capital purchased 13 properties in 12 transactions for a total of $70.6 million and sold five properties in five transactions for a total of $24.7 million over the past 24 months.
The seller Abraham Bernat 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 Abraham Bernat, head officer and Israel Bernat, site manager. The business entity is 175 South 4 Llc.

The property

The building with 4 residential units in Williamsburg has 3,520 square feet of built space and 1,567 square feet of additional air rights for a total buildable of 5,078 square feet according to a PincusCo analysis of city data. The parcel has frontage of 22 feet and is 95 feet deep with a total lot size of 2,090 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.5 million.

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 $2,500 in ECB penalties and $2,900 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 eight of the 13 commercial properties representing 160,650 square feet of the 190,719 square feet. The largest owner is Stanislaw Majkut, followed by Southside United H.D.F.C. and then Israel Friedman.
On the tax block, there was one new building construction project filed totaling 26,387 square feet. It is a 29-unit, 26,387 square-foot residential (R-2) building submitted by Jerome Zwick and filed by Jerome Zwick with plans filed December 5, 2024 and it has not been permitted yet.

The majority, or 61 percent of the 190,719 square feet of built space are walkup buildings, with specialty buildings next occupying 23 percent of the space.

The buyer

The PincusCo database currently indicates that Penn South Capital owned at least 23 commercial properties with 221 residential units in New York City with 157,122 square feet and a city-determined market value of $73 million. (Market value is typically about 50% of actual value.) The portfolio has $99.3 million in debt, with top three lenders as KeyBank, Shelter Growth Capital Partners, and Midcap Financial respectively. Within the portfolio, the bulk, or 66 percent of the 157,122 square feet of built space are walkup properties, with office properties next occupying 8 percent of the space. The bulk, or 82 percent of the built space, is in Manhattan, with Brooklyn next at 18 percent of the space.

Direct link to Acris document. link