Street fashion brand Carhartt WIP pays $10.5M for retail in Williamsburg

The urban fashion brand Carhartt WIP through the entity Ed Real Us, LLC paid $10.5 million to L3 Capital through the entity Rs Jz Bedford – N 6th, LLC for the retail building (K2) at 132 Bedford Avenue in Williamsburg, Brooklyn. This is Carhartt WIP’s second commercial purchase in New York City.

Carhartt WIP, founded in 1994, is a licensee of the original Carhartt, Inc. work wear retailer, which was founded in 1889.

The expected use is owner-occupied. The sale is a “real estate owned” transaction, as L3 Capital was a former lender which took this property and others back from the former borrower, RedSky Capital, in early 2021 in a transaction valued at $145 million.
The deal closed on August 14, 2024 and was recorded on September 3, 2024. The property has 9,180 square feet of built space and 3,570 square feet of additional air rights for a total buildable of 12,750 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,143 and the price per buildable square foot is $823 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 signatory for L3 Capital was Domenic Lanni. The contract date was July 6, 2024.

This is Carhartt WIP’s second commercial purchase in New York City. Carhartt WIP, the streetware brand affiliated with the workwear brand Carhartt Inc., paid $9.5 million for the fourth floor commercial condominium unit in 599 Broadway in January 2023.

The seller L3 Capital had not purchased any other properties and sold four properties in three transactions for a total of $18.3 million over the same time period.

The property

The retail building in Williamsburg has 9,180 square feet of built space and 3,570 square feet of additional air rights for a total buildable of 12,750 square feet 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 4,250 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $654,000. The most recent loan totaled $122.6 million and was provided by JPMorgan Chase on December 31, 2020.

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

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 5th highest sale turnover among other neighborhoods in the city with $1.9 billion in sales volume in the last two years. For development, Williamsburg is the 10th most active neighborhood among other neighborhoods. It had 4.6 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 13 of the 21 commercial properties representing 96,894 square feet of the 131,869 square feet. The largest owner is Lineaire Group, followed by Manjula Mukhopadhyay and then Josephine Canka.
There are no active new building construction projects on this tax block.

The majority, or 45 percent of the 131,869 square feet of built space are walkup buildings, with elevator buildings next occupying 28 percent of the space.

The seller

The PincusCo database currently indicates that L3 Capital owned at least 30 commercial properties with 26 residential units in New York City with 213,213 square feet and a city-determined market value of $75.7 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 54 percent of the 213,213 square feet of built space are retail properties, with mixed-use properties next occupying 35 percent of the space. The bulk, or 79 percent of the built space, is in Brooklyn, with Manhattan next at 21 percent of the space.

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