33 Equities pays $19.8M to Atlantis Development for 61-unit rental in Mt Hope

33 Equities through the entity 1988 Anthony Ave 1 LLC paid $19.8 million to Atlantis Development through the entity 1984 Anthony LLC for 61-unit residential elevator building (D1) at 1988 Anthony Avenue in Mt Hope, Bronx.
The deal closed on June 15, 2022 and was recorded on June 30, 2022. The property has 42,175 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $468 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 Atlantis Development was Robert Lumaj. The signatory for 33 Equities was Zachary Hering. Robert Lumaj operates under Atlantis Development, according to The Real Deal.  Zachary Hering is the founder of 33 Equities.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer 33 Equities purchased one property in one transaction for a total of $10.4 million and has no record it sold any properties over the past 24 months.
The seller Atlantis Development had not purchased any other properties and sold two properties in one transactions for a total of $6.5 million over the same time period.

The property

The most recent loan totaled $6.9 million and was provided by Northeast Community Bank on September 1, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received one DOB violation, $6,870 in ECB penalties, and $6,870 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 68-unit, 47,224-square-foot R-2 building. The project was developed by Robert Lumaj with plans filed July 26, 2017 and permitted September 27, 2018.

The neighborhood

In Mt Hope, the majority, or 53 percent of the 12.5 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 25 percent of the space. In sales, Mt Hope has had very little sales volume relative to other neighborhoods with $60.5 million in sales volume in the last two years. For development, Mt Hope has had very little major development activity relative to other neighborhoods.It had 734,472 square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 27 commercial properties representing 336,025 square feet of the 908,155 square feet. The largest owner is Atlantic Development Group, followed by Michael Merges and then Ved Parkash. There are three active new building construction projects totaling 105,253 square feet. The largest is a 68-unit, 47,224-square-foot R-2 building developed by Robert Lumaj with plans filed July 26, 2017 and permitted September 27, 2018. The second largest is a 40-unit, 40,902-square-foot R-2 building developed by Sabah Rajput with plans filed September 2, 2010 and permitted July 2, 2015.

The majority, or 66 percent of the 931,619 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 27 percent of the space.

The seller

The PincusCo database currently indicates that Atlantis Development owned at least four commercial properties with 42,175 square feet and a city-determined market value of $776,000. (Market value is typically about 50% of actual value.) The portfolio has $12.9 million in debt, borrowed from Northeast Community Bank. Within the portfolio, the bulk, or 100 percent of the 42,175 square feet of built space are elevator properties, with development properties next occupying 0 percent of the space. They are all located in Bronx.

The buyer

The PincusCo database currently indicates that 33 Equities owned at least one commercial property with 16,312 square feet and a city-determined market value of $3.6 million. (Market value is typically about 50% of actual value.) The portfolio has $6 million in debt, borrowed from Peapack-Gladstone Bank. The portfolio consists of at least a single walkup property. It is located in Manhattan.

Surrounding

Within a 400-foot radius of 1988 Anthony Avenue, PincusCo identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, one was in new building development. It was a new building permit application filed on April 4, 2022 for a 16,677-square-foot R-2 building with 27 residential units at 1962 Anthony Avenue.
Of those three items, two were loans above $5 million totaling $30.6 million. The most recent of the two was Thorobird Investments which borrowed $18.3 million from Settlement Housing Fund secured by the 25,031-square-foot, 37-unit rental (D1) on 225 East 179th Street and two other properties on July 16, 2021.

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