Samuel Teitelbaum pays $8.2M to Cayuga Capital Management for dev site in Williamsburg

Samuel Teitelbaum through the entity Berry On The Park Holdings LLC paid $8.2 million to Cayuga Capital Management through the entity 10 Berry Development LLC for the development building (V1) at 12 Berry Street in Williamsburg, Brooklyn.
The deal closed on June 8, 2023 and was recorded on June 13, 2023. The property has zero square feet of built space and 21,266 square feet of additional air rights for a total buildable of 21,266 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $387 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 1, 2017, for $4.1 million. The signatory for Cayuga Capital Management was Ryan O. Miller. The signatory for Samuel Teitelbaum was Samuel Teitelbaum. Cayuga Capital Management’s James P. Wiseman was a signatory for a prior loan.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Samuel Teitelbaum had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Cayuga Capital Management purchased one property in one transaction for a total of $24.8 million and sold four properties in four transactions for a total of $78 million over the same time period.

The property

The parcel has frontage of 225 feet and is 100 feet deep with a total lot size of 21,266 square feet. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $979,000.

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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on April 27, 2015. On the lot, there is one active new building construction project for a 29,313 square-foot B building. The project was submitted by Michael Patti who owns 8 Berry Street and who partnered with Cayuga on the project, with plans filed June 1, 2017 but the project was never built.

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 $2.4 billion in sales volume in the last two years. For development, Williamsburg is the 9th most active neighborhood among other neighborhoods. It had 4.2 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 four of the seven commercial properties representing 88,694 square feet of the 111,563 square feet. The largest owner is Rabsky Group, followed by Goldie Reisman and then False Alarm Ltd..
On the tax block, there were three new building construction projects totaling 223,718 square feet. The largest is a 136,925 square-foot business (B) building submitted by Double U LLC and filed by Jay Weitzman with plans filed November 8, 2018 and it has not been permitted yet. The second largest is a 90-unit, 57,480 square-foot utility and miscellaneous (U) building submitted by Rabsky Group and filed by Simon Dushinsky with plans filed March 18, 2014 and it has not been permitted yet.

The majority, or 74 percent of the 111,563 square feet of built space are office buildings, with retail buildings next occupying 18 percent of the space.

The seller

The PincusCo database currently indicates that Cayuga Capital Management owned at least 24 commercial properties with 204 residential units in New York City with 229,415 square feet and a city-determined market value of $44 million. (Market value is typically about 50% of actual value.) The portfolio has $140.4 million in debt, with top three lenders as M&T Bank, Amherst Capital Management, and BLDG Management respectively. Within the portfolio, the bulk, or 46 percent of the 229,415 square feet of built space are walkup properties, with D7 properties next occupying 27 percent of the space. The bulk, or 96 percent of the built space, is in Brooklyn, with Queens next at 4 percent of the space.

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