Two Trees signs $75M refi with Wells Fargo for three dev sites in Williamsburg

Two Trees Management through the entity River Street Partners LLC as borrower signed a refi land loan with lender Wells Fargo valued at $75 million for three development parcels including 105 River Street, 87 River Street and 4 North 1st Street, all in Williamsburg, Brooklyn.

On these lots, 105 River Street, there is one active new building construction project, B00629573, for a 399-unit, 444,575 square-foot R-2 building. The project was submitted by Two Trees Management and filed by Bridget Mccrum with plans filed December 23, 2021 and permitted May 18, 2022.

The loan closed on November 5, 2024 and was recorded on November 13, 2024. The prior lender was M&T Bank which held debt that had an original loan amount of $78.8 million.
The three properties have zero square feet of built space and 1,834,637 square feet of additional air rights for a total buildable of 1,834,637 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $40 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 Two Trees Management was Amish Patel. The signatory for Wells Fargo was Ryan Cawley.

The property

The lot is irregular. The zoning is C6-2 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential. The city-designated market value for the property in 2022 is $4.3 million. The most recent loan totaled $78.8 million and was provided by M&T Bank on January 2, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

The block

On the tax block of 105 River Street, PincusCo has identified the owners of two of the two commercial properties representing zero square feet of the zero square feet. The two identified owners are Two Trees Management and City Of New York.
On the tax block, there was one new building construction project filed totaling 444,575 square feet. It is a 399-unit, 444,575 square-foot residential (R-2) building submitted by Two Trees Management and filed by Bridget Mccrum with plans filed December 23, 2021 and permitted May 18, 2022.

All properties are development.

The borrower

The PincusCo database currently indicates that Two Trees Management owned at least 28 commercial properties with 1,211 residential units in New York City with 3,279,419 square feet and a city-determined market value of $786.5 million. (Market value is typically about 50% of actual value.) The portfolio has $1.5 billion in debt, with top three lenders as Wells Fargo, JPMorgan Chase, and M&T Bank respectively. Within the portfolio, the bulk, or 52 percent of the 3,279,419 square feet of built space are office properties, with elevator properties next occupying 38 percent of the space. The bulk, or 91 percent of the built space, is in Brooklyn, with Manhattan next at 9 percent of the space.

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