Wharton Properties signs $6.1M loan for 8-unit walkup in Williamsburg

Jeff Sutton of Wharton Properties through the entity 117 North 4th St LLC as borrower signed an initial loan with lender Valley National Bank valued at $6.1 million for the eight-unit residential walkup building (C1) at 117 North 4th Street in Williamsburg, Brooklyn.
The deal closed on May 12, 2023 and was recorded on May 19, 2023. The property has 6,500 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $938 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 owner bought the property on July 31, 2020, for $2.8 million. The signatory for Jeff Sutton and Wharton Properties was Jeff Sutton. The signatory for Valley National Bank was Christopher Gregg and Oren Sapirstein. This is the first debt Wharton Properties has taken since purchasing it in July 2020 for $2.8 million and then undertaking a major rehabilitation.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Eric Setton, head officer and Jay Gelb, site manager. The business entity is 117 North 4th St LLC.

The property

The residential walkup building with 8 residential units in Williamsburg has 6,500 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,499 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 $2.6 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 one DOB violation and $50 in OATH penalties in the last year.

The block

On this tax block, PincusCo has identified the owners of five of the 11 commercial properties representing 25,616 square feet of the 92,421 square feet. The largest owner is Rafal Wierciak, followed by Miura Yoshiki and then Mendel Gold.
There are no active new building construction projects on this tax block.

The majority, or 75 percent of the 92,421 square feet of built space are walkup buildings, with mixed-use buildings next occupying 17 percent of the space.

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