Quadrum Global acquires Williamsburg Hotel for $96M out of bankruptcy

Quadrum Global through the entity Quadrum Bk LLC paid $96 million to buy the Williamsburg Hotel (H2) at 96 Wythe Avenue in Williamsburg, Brooklyn through a bankruptcy process. The developer and former owner Heritage Equity Partners had placed the property into bankruptcy in 2021.
The deal closed on April 17, 2023 and was recorded on May 2, 2023. The property has 78,215 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $1,227 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 Real Deal reported on the purchase last month.
The signatory for the bankruptcy court was Stephen S. Gray. The signatories for Quadrum Global was Anoop Rustgi and Jared White. The property formerly owned by Toby Moskovits and Michael Lichtenstein’s Heritage Equity Partners. Southern District of New York case 21-22108, 96 Wythe Acquisition LLC was the debtor.
The sale was financed through an acquisition loan with lender RMWC through the entity Ngc Wh LLC valued at $58 million for the hotel building (H2) at 96 Wythe Avenue in Williamsburg, Brooklyn.
The deal closed on April 17, 2023 and was recorded on May 2, 2023. The prior lender was Benefit Street Partners which held debt that had an original loan amount of $68 million.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Quadrum Global had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Heritage Equity Partners had not purchased any other properties and sold two properties in one transactions for a total of $41.5 million over the same time period.

The property

The hotel building in Williamsburg has 78,215 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 225 feet deep with a total lot size of 21,875 square feet. The lot is irregular. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $26.4 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 two DOB violations, $10,000 in ECB penalties, and $13,225 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on December 15, 2016. On the lot, there was a new building construction project for a 160-unit, 53,694 square-foot hotel building. The project was submitted by Heritage Equity Partners and filed by Toby Moskovits with plans filed September 21, 2012.

The neighborhood

In Williamsburg, The bulk, or 39 percent of the 50.4 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 8th most active neighborhood among other neighborhoods. It had 4.1 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 this tax block, PincusCo has identified the owners of one of the 12 commercial properties representing 5,900 square feet of the 134,297 square feet. The identified owner is All Year Management.
On the tax block, there was one new building construction project filed totaling 53,694 square feet. It is a 160-unit, 53,694 square-foot business (B) building submitted by Heritage Equity Partners and filed by Toby Moskovits with plans filed September 21, 2012.

The majority, or 58 percent of the 134,297 square feet of built space are hotel buildings, with mixed-use buildings next occupying 33 percent of the space.

The buyer

The PincusCo database currently indicates that Quadrum Global owned at least three commercial properties with 547 residential units in New York City with 1,735,076 square feet. The portfolio has $252.7 million in debt, borrowed from Affinius Capital and Madison Realty Capital. Within the portfolio, the bulk, or 78 percent of the 1,735,076 square feet of built space are office properties, with elevator properties next occupying 13 percent of the space. The bulk, or 78 percent of the built space, is in Queens, with Brooklyn next at 13 percent of the space.

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