RYCO Capital pays $10.2M to L3 Capital for mixed-use in Williamsburg

RYCO Capital through the entity Klwythe LLC paid $10.2 million to L3 Capital through the entity L3 168-170 Wythe Ave LLC for the five-unit mixed-use building (S5) at 168 Wythe Avenue in Williamsburg, Brooklyn.
The deal closed on March 4, 2024 and was recorded on May 31, 2024. The property has 11,750 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $868 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 December 26, 2019, for $11.7 million. The signatory for L3 Capital was Dominic Lanni. The signatory for RYCO Capital was James Ryan. The contract date was January 11, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer RYCO Capital purchased five properties in four transactions for a total of $49.4 million and has no record it sold any properties over the past 24 months.
The seller L3 Capital had not purchased any other properties and sold one properties in one transactions for a total of $2.7 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Domenic Lanni, head officer and Nadia Elia, site manager. The business entity is L3 168-170 Wythe Ave Llc. The 11,750-square-foot property generated revenue of $297,393 or $25 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building with 5 residential units in Williamsburg has 11,750 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 4,999 square feet. The zoning is M1-2/R6B which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 2 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $5.3 million. The most recent loan totaled $90.5 million and was provided by Ladder Capital on December 26, 2019.

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 $150 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project for a one-unit, 9,836 square-foot M building. The project was submitted by Domenic Lanni with plans filed November 20, 2020 and it has not been permitted yet.

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 4th highest sale turnover among other neighborhoods in the city with $2.2 billion in sales volume in the last two years. For development, Williamsburg has 4.1 times the average amount of major developments relative to other neighborhoods and is the 2nd highest in Brooklyn. It had 4.5 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 two 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 11 of the 21 commercial properties representing 82,385 square feet of the 112,885 square feet. The largest owner is Manjula Mukhopadhyay, followed by L3c Capital Partners and then L3 Capital.
On the tax block, there were four new building construction projects totaling 39,184 square feet. The largest is a 18-unit, 26,936 square-foot residential (R-2) building submitted by L3 Capital and filed by Domenic Lanni with plans filed November 30, 2021 and permitted May 13, 2022. The second largest is a 4,325 square-foot mercantile (M) building submitted by Domenic Lanni with plans filed November 20, 2020 and it has not been permitted yet.

The majority, or 35 percent of the 112,885 square feet of built space are elevator buildings, with mixed-use buildings next occupying 29 percent of the space.

The seller

The PincusCo database currently indicates that L3 Capital owned at least 33 commercial properties with 31 residential units in New York City with 229,963 square feet and a city-determined market value of $82 million. (Market value is typically about 50% of actual value.) The portfolio has $308.3 million in debt, with top three lenders as JPMorgan Chase, Ladder Capital, and Wintrust Bank respectively. Within the portfolio, the bulk, or 50 percent of the 229,963 square feet of built space are retail properties, with mixed-use properties next occupying 38 percent of the space. The bulk, or 80 percent of the built space, is in Brooklyn, with Manhattan next at 20 percent of the space.

The buyer

The PincusCo database currently indicates that RYCO Capital owned at least 12 commercial properties with 137 residential units in New York City with 136,851 square feet and a city-determined market value of $77.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 49 percent of the 136,851 square feet of built space are walkup properties, with mixed-use properties next occupying 31 percent of the space. They are all located in Manhattan.

Direct link to Acris document. link