Watermark Capital, Maguire sign two loans totaling $65.5M for Sunset Park dev site

Watermark Capital Group and Maguire Capital Group signed two loans totaling $65.5 million for a large development site at 6208 8th Avenue in Sunset Park, Brooklyn, with Daryl Hagler and Ezra Husney’s Genesis Holdings Management, in separate transactions.
On the lot, there is one active new building construction project, B00754062, for a 497-unit, 652,445 square-foot R-2 building. The project was submitted by Joel Werczberger and filed by Joel Werczberger with plans filed June 13, 2022 and permitted March 20, 2024.

In the larger, Watermark Capital Group and Maguire Capital Group through the entity 62-08 Realty LLC as borrower signed a refi loan with lender Daryl Hagler through the entity 6208 Cdk LLC valued at $42.5 million for the development site.
The deal closed on November 1, 2024 and was recorded on November 22, 2024. The prior lender was Blackstone Group which held debt that had an original loan amount of $22.3 million.The property has zero square feet of built space and 390,501 square feet of additional air rights for a total buildable of 390,501 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $108 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 Watermark Capital Group and Maguire Capital Group was Wolfe Landau and Marvin Azrak. The signatory for Daryl Hagler was Daryl Hagler.

In the smaller, Watermark Capital Group and Maguire Capital Group through the entity 62-08 Realty LLC as borrower signed a refi loan with lender Genesis Holdings Management through the entity Neg Financing 9 LLC valued at $23 million for the development site. The deal closed on November 1, 2024 and was recorded on November 22, 2024. The prior lender was Blackstone Group which held debt that had an original loan amount of $23 million.The property has zero square feet of built space and 390,501 square feet of additional air rights for a total buildable of 390,501 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $58 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 Watermark Capital Group and Maguire Capital Group was Wolfe Landau and Marvin Azrak. The signatory for Genesis Holdings Management was Ezra Husney.

The property

The parcel has frontage of 221 feet and is 700 feet deep with a total lot size of 160,700 square feet. The lot is irregular. The zoning is C4-2 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $4.3 million. The most recent loan totaled $45.3 million and was provided by Signature Bank on January 10, 2023.

Violations and lawsuits

The property was involved in at least five lawsuits over the past two years. The highest value suit was a $50 million money judgment concerning a contract filed on August 31, 2023, by Wing Fung Chau against Jun Xu. In addition, according to city public data, the property has not received any significant violations in the last year.

The block

On this tax block, PincusCo has identified the owners of seven of the 22 commercial properties representing 74,437 square feet of the 393,176 square feet. The largest owner is Diversified Healthcare Trust, followed by Maguire Capital Group and then Vivian Li.
On the tax block, there were two new building construction projects totaling 64,924 square feet. The largest is a 113-unit, 62,600 square-foot residential (R-2) building submitted by Joel Werczberger and filed by Joel Werczberger with plans filed June 13, 2022 and permitted March 20, 2024. The second largest is a 2,324 square-foot business (B) building submitted by Ya Quan Guan with plans filed May 8, 2019 and permitted January 30, 2024.

The majority, or 62 percent of the 393,176 square feet of built space are office buildings, with specialty buildings next occupying 19 percent of the space.

The borrower

The PincusCo database currently indicates that Watermark Capital Group owned at least 133 commercial properties with 1,511 residential units in New York City with 1,558,914 square feet and a city-determined market value of $300.5 million. (Market value is typically about 50% of actual value.) The portfolio has $151.5 million in debt, with top three lenders as BridgeCity Capital, Signature Bank, and Bridge City Funding respectively. Within the portfolio, the bulk, or 53 percent of the 1,558,914 square feet of built space are walkup properties, with elevator properties next occupying 20 percent of the space. The bulk, or 93 percent of the built space, is in Brooklyn, with Queens next at 7 percent of the space.
The PincusCo database currently indicates that Maguire Capital Group owned at least seven commercial properties with 22 residential units in New York City with 25,455 square feet and a city-determined market value of $13.6 million. (Market value is typically about 50% of actual value.) The portfolio has $25.2 million in debt, borrowed from Lightstone Group and Maspeth Federal Savings and Loan Association. Within the portfolio, the bulk, or 42 percent of the 25,455 square feet of built space are mixed-use properties, with walkup properties next occupying 41 percent of the space. The bulk, or 58 percent of the built space, is in Brooklyn, with Manhattan next at 42 percent of the space.

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