Bezz Enterprises & Rester Management Propose Conversion of 9-Unit Loft Building to 27 in Williamsburg

Eliezer Fried of Bezz Enterprises has submitted a major alteration application for the rehabilitation of a loft building located at 400 South 2nd Street in Williamsburg, Brooklyn. The project, in collaboration with Montreal-based Rester Management, aims to convert the approximately nine-unit building into 27 units. Additionally, the plan seeks to remove the building from the Loft Law governing Interim Multiple Dwellings, granting it a proper certificate of occupancy under a residential (R-2) occupancy.

Project Details

The application, filed with the New York City Department of Buildings on February 28, 2024, outlines a comprehensive rehabilitation of the five-story building. The proposed project includes the conversion of the existing manufacturing space into a mixed-use residential and commercial building, under the provisions of the New York City loft law. Interior renovations will involve demolition and construction of partitions, along with roof work. The proposed zoning square footage for the project is 44,790 square feet.

Property Ownership History

Rester Management, which acquired several properties previously owned by investor Chaskiel Strulovitch, is involved in this project. In 2015, a partnership led by Chaskiel Strulovitch purchased adjacent loft buildings at 394 South 2nd Street and 396 South 2nd Street. In 2018, ownership was transferred to 400 South 2nd Street Realties, with Shlomo Drazin acting as a member. Notably, Eliezer Fried filed a zoning lot merger on February 15, 2024, to consolidate the two lots into one, designated as lot 17, with 100 feet of frontage.

Neighborhood Overview

Williamsburg is a vibrant neighborhood with significant commercial activity. The area boasts 50.4 million square feet of commercial built space, with elevator buildings comprising 39 percent and walkup buildings accounting for 25 percent. In terms of sales turnover, Williamsburg ranks fourth among city neighborhoods, with $2.3 billion in sales volume over the past two years. Moreover, it stands as the tenth most active neighborhood for development, with 4.4 million square feet of commercial and multi-family construction underway, representing 9 percent of the neighborhood’s built space.

Block Analysis

PincusCo's analysis of the tax block reveals the ownership of 14 out of 19 commercial properties, representing 233,124 square feet of the total 294,522 square feet. Abraham Grunhut emerges as the largest owner on the block, followed by Eric Chan and Gilman Management. However, there are currently no active new building construction projects on this tax block.

Surrounding Area

Within a 400-foot radius of 400 South 2nd Street, two notable commercial real estate transactions have occurred in the past 24 months. These transactions include loans exceeding $5 million, totaling $163.6 million. One recent transaction involved Hyunshin Park, who borrowed $6.5 million from Cathay Bank, secured by a 13,826-square-foot, 19-unit rental property on 390 South 2nd Street, on August 7, 2023.