Penn South Capital pays $3M for 4-family in Williamsburg

Penn South Capital through the entity 110 S 2 RLA LLC paid $3 million to Skylight Real Estate Partners through the entity Broadway Williamsburg Four LLC for the four-unit building (C3) at 110 South 2nd Street in Williamsburg, Brooklyn.
The deal closed on September 26, 2023 and was recorded on October 2, 2023. The property has 4,180 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $717 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 April 21, 2016, for $9.6 million. The signatory for Skylight Real Estate Partners was Anthony J. Cornicello. The signatory for Penn South Capital was Parag Sawhney. The contract date was April 4, 2023. Bennat Berger of Skylight Real Estate Partners was the owner signatory when the property obtained a loan in 2018.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Penn South Capital purchased 12 properties in 11 transactions for a total of $69.6 million and sold two properties in two transactions for a total of $9.5 million over the past 24 months.
The seller Skylight Real Estate Partners 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 Gregory Bucks, head officer and Igli Jaupi, agent. The business entities are Canvas Property Group and Williamsburg 4 Management Llc.

The property

The 1-4 family building with 4 residential units in Williamsburg has 4,180 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 19 feet and is 90 feet deep with a total lot size of 1,709 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 $1.3 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 $50,000 in ECB penalties and $500 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 five of the 14 commercial properties representing 73,133 square feet of the 128,717 square feet. The largest owner is Southside United H.D.F.C., followed by Judah Zelmanovitz and then Fia Capital Partners.
On the tax block, there were two new building construction projects totaling 12,440 square feet. The largest is a eight-unit, 7,540 square-foot residential (R-2) building submitted by Yisroel Greenfeld with plans filed May 13, 2022 and permitted February 9, 2023. The second largest is a seven-unit, 4,900 square-foot residential (R-2) building submitted by Moses Karpen with plans filed May 18, 2022 and permitted June 15, 2022.

The majority, or 87 percent of the 128,717 square feet of built space are walkup buildings, with mixed-use buildings next occupying 7 percent of the space.

The seller

The PincusCo database currently indicates that Skylight Real Estate Partners owned at least 25 commercial properties with 387 residential units in New York City with 356,069 square feet and a city-determined market value of $68.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 64 percent of the 356,069 square feet of built space are walkup properties, with elevator properties next occupying 34 percent of the space. The bulk, or 77 percent of the built space, is in Manhattan, with Brooklyn next at 23 percent of the space.

The buyer

The PincusCo database currently indicates that Penn South Capital owned at least 15 commercial properties with 104 residential units in New York City with 90,953 square feet and a city-determined market value of $49.3 million. (Market value is typically about 50% of actual value.) The portfolio has $98.1 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 90,953 square feet of built space are walkup properties, with mixed-use properties next occupying 11 percent of the space. The bulk, or 92 percent of the built space, is in Manhattan, with Brooklyn next at 8 percent of the space.

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