Slate signs $55.5M construction loan with White Oak for development in Williamsburg

Slate Property Group through the entity SPG Boerum LLC as borrower signed a new construction loan with lender White Oak Financial through the entity White Oak Real Estate Capital Management Services valued at $55.5 million for the industrial building (G7) at 159 Boerum Street in Williamsburg, Brooklyn.

On the lot, there is one active new building construction project for a 161-unit, 138,228 square-foot R-2 building. The project was developed by David Schwartz with plans filed November 9, 2017 and it has not been permitted yet.
The deal closed on December 29, 2022 and was recorded on January 9, 2023.
The signatory for Slate Property Group was Martin Nussbaum. The signatory for White Oak Financial was Eric Tanjeloff.

The property

The 159 Boerum Street parcel has frontage of 109 feet and is 102 feet deep with a total lot size of 11,178 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 $945,000.

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 received $3,375 in ECB penalties and $3,375 in OATH penalties in the last year.

The neighborhood

In Williamsburg, the bulk, or 39 percent of the 49.7 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 7th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, Williamsburg is the 10th most active neighborhood among other neighborhoods. It had 4.3 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.

The block

On this tax block, PincusCo has identified the owners of four of the nine commercial properties representing 57,261 square feet of the 77,261 square feet. The largest owner is Smita Patel, followed by SK Development and then Nickomedes Domenech.
On the tax block, there was one new building construction project filed totaling 138,228 square feet. It is a 161-unit, 138,228-square-foot R-2 building developed by David Schwartz with plans filed November 9, 2017 and permitted April 1, 2022.

The majority, or 82 percent of the 77,261 square feet of built space are walkup buildings, with mixed-use buildings next occupying 18 percent of the space.

The borrower

The PincusCo database currently indicates that Slate Property Group owned at least 52 commercial properties in New York City with 1,820,344 square feet and a city-determined market value of $445.1 million. (Market value is typically about 50% of actual value.) The portfolio has $1 billion in debt, with top three lenders as Mack Real Estate Group, Signature Bank, and Heitman LLC respectively. Within the portfolio, the bulk, or 70 percent of the 1,820,344 square feet of built space are elevator properties, with walkup properties next occupying 18 percent of the space. The bulk, or 59 percent of the built space, is in Manhattan, with Brooklyn next at 28 percent of the space.

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