Thornton Capital pays $25M to ASB Capital for mixed-use in Williamsburg

Thornton Capital through the entity 60 North 6th Street, LLC paid $25 million to ASB Capital Management through the entity Williamsburg Meridian N 6th, LLC for midblock mixed-use building at 60 North 6th Street in Williamsburg, Brooklyn.
The deal closed on February 28, 2022 and was recorded on March 9, 2022. The property has 10,000 square feet of built space and 5,000 square feet of additional air rights for a total buildable of 15,000 square feet according to PincusCo analysis of city data. The sale price per built square foot is $2,500 and the price per buildable square foot is $1,666 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 December 5, 2017, for $19.8 million. The signatory for ASB Capital Management was Matthew Brodie Ruland. The signatory for Thornton Capital was Matthew A. Thornton.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Thornton Capital had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller ASB Capital Management had not purchased any other properties and sold one property in one transaction for a total of $85 million over the same time period.

The property

The 60 North 6th Street parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,000 square feet. The zoning is M1-2/R6A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.5 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $750 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on January 21, 2021. 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 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 seven pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the 14 commercial properties representing 50,000 square feet of the 611,887 square feet. The two identified owners are Asana Partners and Michael Weitzman. There is one active new building construction project totaling 10,234 square feet. It is a three-unit, 10,234-square-foot R-2 building developed by D. Kevin Dolan with plans filed March 10, 2010 and permitted January 25, 2017.

The majority, or 88 percent of the 84,897 square feet of built space are mixed-use buildings, with specialty buildings next occupying 12 percent of the space.

The seller

The PincusCo database currently indicates that ASB Capital Management owned at least one commercial property with 28,964 square feet and a city-determined market value of $17.2 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single retail property. It is located in Manhattan.

Surrounding

Within a 400-foot radius of 60 North 6th Street, Pincusco identified 16 commercial real estate items of interests occurred over the past 24 months.
Of those 16 items, one was in new building development. It was a new building permit application filed on November 30, 2021 for a 26,936-square-foot R-2 building with 18 residential units at 133 Kent Avenue.
Of those 16 items, three were for major renovation including a certificate of occupancy change. They were one permit applications with a total initial cost of $1.9 million and two permits with a total initial cost of $969,000.
Of those 16 items, four were sales above $5 million totaling $56.1 million. The most recent of the four was Michael Weitzman which bought the 25,000-square-foot, 16-unit mixed-use building (K4) on 135 Kent Avenue for $7.5 million from Jeffry Cohen on August 19, 2021.
Of those 16 items, eight were loans above $5 million totaling $352.6 million. The most recent of the eight was Michael Weitzman which borrowed $6 million from Spruce Capital secured by the 25,000-square-foot, 16-unit mixed-use building (K4) on 135 Kent Avenue on August 19, 2021.

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