RiseBoro signs $72.3M construction loan with city for 140-unit development in Williamsburg

RiseBoro Community Partnership through the entity Throop Corners Community Lihtc LLC as borrower signed a loan with the NYC Housing Development Corporation valued at $72.3 million for the development building (V1) at 100 Throop Avenue in Williamsburg, Brooklyn.
The deal closed on June 30, 2022 and was recorded on July 22, 2022. (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.)
There is one active new building construction project on this block totaling 126,301 square feet. It is a 140-unit, 126,301-square-foot R-2 building filed by the NYC Department of Housing Preservation and Development through Rona Reodica with plans filed September 9, 2021 and permitted June 22, 2022.

The property

The 100 Throop Avenue parcel has frontage of 55 feet and is 100 feet deep with a total lot size of 5,500 square feet. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $361,000.

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 not received any significant violations 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 50 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 8th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, Williamsburg is the 8th most active neighborhood among other neighborhoods. It had 5.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other development buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the 29 commercial properties representing 10,000 square feet of the 89,901 square feet. The largest owner is Cheskel Brach, followed by Abraham Brach and then Sarah Gelb.
There is one active new building construction project totaling 126,301 square feet. It is a 140-unit, 126,301-square-foot R-2 building developed by Rona Reodica with plans filed September 9, 2021 and permitted June 22, 2022.

The majority, or 65 percent of the 89,901 square feet of built space are elevator buildings, with industrial buildings next occupying 22 percent of the space.

Surrounding

Within a 400-foot radius of 100 Throop Avenue, Pincusco identified nine commercial real estate items of interests occurred over the past 24 months.
Of those nine items, five were in new building development. There were three new building permit applications and two new building permits. The most recent of these five items was a permit on June 22, 2022 for a 126,301-square-foot R-2 building with 140 residential units at 100 Throop Avenue.
Of those nine items, two were sales above $5 million totaling $12.1 million. The most recent of the two was Cheskel Brach which bought the 7,500-square-foot, two-unit office building (O2) on 33 Bartlett Street for $5 million from Abraham Brach on March 3, 2021.
Of those nine items, two were loans above $5 million totaling $28.1 million. The most recent of the two was Sarah Gelb which borrowed $8.1 million from Cross River Bank secured by the 2,208-square-foot, one-unit industrial (G9) on 55 Bartlett Street and two other properties on June 10, 2021.

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