StorageMart ups debt to $39.3M for industrial in Williamsburg

StorageMart through the entity Tkg-Storagemart Partners Portfolio, LLC as borrower signed a refi loan with lender Citibank through the entity Citi Real Estate Funding Inc. valued at $39.3 million for the industrial building (E7) at 44 Wallabout Street in Williamsburg, Brooklyn.
The deal closed on May 23, 2023 and was recorded on June 15, 2023. The prior lender was Series 2019-SMRT which held debt that had an original loan amount of $27.5 million.
The property has 81,700 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $480 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 owner bought the property on February 10, 2021, for $86.4 million. The signatory for StorageMart was P. Crimson Burnam. The signatory for Citibank was Alicia L. Mioli.

The property

The industrial building in Williamsburg has 81,700 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 300 feet and is 117 feet deep with a total lot size of 34,850 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 $9.2 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 $2,500 in ECB penalties and $2,730 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

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 $2.5 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 one of the two commercial properties representing 235,183 square feet of the 316,883 square feet. The identified owner is Bruman Realty.
There are no active new building construction projects on this tax block.

The majority, or 74 percent of the 316,883 square feet of built space are retail buildings, with industrial buildings next occupying 26 percent of the space.

The borrower

The PincusCo database currently indicates that Storagemart owned at least 21 commercial properties in New York City with 2,906,334 square feet and a city-determined market value of $385.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 98 percent of the 2,906,334 square feet of built space are industrial properties, with specialty properties next occupying 2 percent of the space. They are all located in Manhattan.

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