Townhouse Rental II pays $8.4M to Joel Fried for residential walkup in Williamsburg

Townhouse Rental II, L.L.C., which has partnered with Carlyle Group in past deals, paid $8.4 million to Hf Devoe Holding LLC for Joel Fried’s midblock 10-unit residential walkup building at 11 Devoe Street in Williamsburg, Brooklyn.
The deal closed on June 9, 2022 and was recorded on June 27, 2022. The property has 7,152 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $1,181 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 September 8, 2015, for $1.9 million.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Joe Fried, head officer and Mendel Hirsch, officer. The business entity is Hf Devoe Holding Llc.

The property

The 11 Devoe Street parcel has frontage of 25 feet and is 125 feet deep with a total lot size of 3,125 square feet. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.3 million.

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 $100 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 28, 2018. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Williamsburg, the bulk, or 35 percent of the 65.1 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 19 percent of the space. In sales, Williamsburg has the 9th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Williamsburg is the 6th most active neighborhood among other neighborhoods. It had 5.1 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. There were eight pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 10 of the 27 commercial properties representing 69,490 square feet of the 146,737 square feet. The largest owner is Rama P. Mukhopadhyay, followed by Maria Dente and then Marek A. Kluska. There are three active new building construction projects totaling 29,701 square feet. The largest is a four-unit, 9,649-square-foot R-2 building developed by Michael Maidan with plans filed April 24, 2015 and permitted March 5, 2020. The second largest is a 13-unit, 9,226-square-foot R-2 building developed by Joel Schwartz with plans filed September 25, 2018 and permitted November 17, 2021.

the majority, or 35 percent of the 206,628 square feet of built space are residential walkup buildings, with mixed-use buildings next occupying 26 percent of the space.

Surrounding

Within a 400-foot radius of 11 Devoe Street, Pincusco identified 10 commercial real estate items of interests occurred over the past 24 months.
Of those 10 items, one was for major renovation including a certificate of occupancy change. It was a permit issued on September 29, 2020 for the $1.3 million renovation of 8,704-square-foot R-2 building with eight residential units at 42 Devoe Street.
One of those 10 items was a sale which Abraham Grunhut bought the 56,997-square-foot, 51-unit rental (D1) on 487 Keap Street for $36.3 million from Read Property Group and Chetrit Group on June 16, 2022.
Of those 10 items, eight were loans above $5 million totaling $119.4 million. The most recent of the eight was Joel Schwartz which borrowed $24.8 million from Quanta Finance secured by the 7,082-square-foot development site (V1) on 438 Union Avenue and two other properties on June 17, 2022.

Direct link to Acris document. link