Watermark Capital pays $5.5M to Israel Perlmutter for industrial in Bushwick

Watermark Capital Group through the entity Three Thirty M LLC paid $5.5 million to Israel Perlmutter through the entity Melrose Deals, Inc. for the industrial building (F4) at 330 Melrose Street in Bushwick, Brooklyn.
The deal closed on May 15, 2024 and was recorded on May 31, 2024. The property has 13,500 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $407 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 Israel Perlmutter was Israel Perlmutter. The signatory for Watermark Capital Group was Meir D. Tabak. The contract date was December 21, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Watermark Capital Group purchased four properties in four transactions for a total of $29.6 million and sold one property in one transaction for a total of $4 million over the past 24 months.
The seller Israel Perlmutter had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial building in Bushwick has 13,500 square feet of built space 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 4,999 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.7 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 $1,580 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 Bushwick, The bulk, or 44 percent of the 33.6 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 18 percent of the space. In sales, Bushwick has 2.2 times the average sales volume among other neighborhoods with $605.6 million in sales volume in the last two years and is the 8th highest in Brooklyn. For development, Bushwick has 1.2 times the average amount of major developments relative to other neighborhoods and is the 14th highest in Brooklyn. It had 1.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 21 of the 40 commercial properties representing 96,500 square feet of the 178,586 square feet. The largest owner is Watermark Capital Group, followed by Solomon Kubitshuk and then Pedro H. Abril.
On the tax block, there were four new building construction projects totaling 21,896 square feet. The largest is a eight-unit, 6,532 square-foot residential (R-2) building submitted by Lisa Parvin with plans filed August 20, 2015 and permitted May 22, 2018. The second largest is a seven-unit, 5,500 square-foot residential (R-2) building submitted by Katherine Garcia with plans filed November 7, 2018 and it has not been permitted yet.

The majority, or 69 percent of the 178,586 square feet of built space are walkup buildings, with mixed-use buildings next occupying 24 percent of the space.

The seller

The PincusCo database currently indicates that Israel Perlmutter owned at least five commercial properties with 85 residential units in New York City with 150,223 square feet and a city-determined market value of $20.5 million. (Market value is typically about 50% of actual value.) The portfolio has $28.7 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 42 percent of the 150,223 square feet of built space are industrial properties, with elevator properties next occupying 38 percent of the space. They are all located in Brooklyn.

The buyer

The PincusCo database currently indicates that Watermark Capital Group owned at least 121 commercial properties with 1,448 residential units in New York City with 1,215,933 square feet and a city-determined market value of $229.1 million. (Market value is typically about 50% of actual value.) The portfolio has $62.5 million in debt, with top three lenders as Signature Bank, Bridge City Funding, and Broadview Capital respectively. Within the portfolio, the bulk, or 68 percent of the 1,215,933 square feet of built space are walkup properties, with elevator properties next occupying 25 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.

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