$6.2M pre-foreclosure filed at 47-unit rental in Tremont

Customers Bank filed a $6.2 million pre-foreclosure at the 47-unit rental building 620 East 178th Street in Tremont, the Bronx. The bank filed the complaint in Bronx County on September 2, 2024.
Case 813819/2024E LINK

Bashi Singer and Martin Kirzner, as trustee under a trust, obtained a $6.2 million loan from Customers Bank in 2017, the complaint says.

Court filings represent the position of one party and are not necessarily accurate or complete.

According to the complaint, “The Mortgaged Property consists of a six story, walk-up apartment building containing a total of forty-seven (47) residential units, and three (3) commercial units on the ground level. Upon information and belief, the Mortgaged Property is occupied with tenants who are obligated to pay monthly rent under written leases. Upon further information and belief, the Mortgaged Property generates approximately $65,000 in monthly rent, annualized at $882,000, according to the most recent rent roll in Plaintiff’s possession dated February 2024… The Note provides for the accrual of interest at the regular contract rate of 3.75% per annum, calculated on a 365/360 basis, through and including December 31, 2022, and thereafter at an adjusted rate (the “Adjusted Interest Rate”) through and including the maturity date of January 1, 2028 (the “Maturity Date”)… Borrower has defaulted in the payment of monthly installments of principal interest, and late fees as and when due under the Note on and after December 1, 2023. As of August 2024, Borrower has incurred late fees in the total amount of $18,146.61 arising from nine separate monthly installments of principal and interest either unpaid entirely or remitted more than … As of August 2024, water and sewer charges at the Property that are unpaid and delinquent by Borrower are in the amount of $64,632.22… As of July 2024, there are 671 open violations of record by the Department of Housing and Preservation Development including 138 class A, 342 class B, and 190 class C violations… ”

The property

The walkup building with 47 residential units in Tremont has 37,105 square feet of built space and 2,705 square feet of additional air rights for a total buildable of 39,780 square feet according to a PincusCo analysis of city data. The parcel has frontage of 41 feet and is 191 feet deep with a total lot size of 7,956 square feet. The zoning is C4-5X which allows for up to 4 times floor area ratio (FAR) for commercial and up to 5 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.2 million.

Prior sales and revenue

This property was sold for $8.2 million on December 5, 2017.

The 37,105-square-foot property generated revenue of $766,047 or $21 per square foot, according to the most recent income and expense figures.

Development

Over the past five years, there has been no NYC Department of Buildings new building, demolition, or alteration permit application valued at more than $20,000 filed for this parcel.

Violations and lawsuits

According to city public data, the property has received 417 housing violations, $9,040 in OATH penalties, and four housing litigations in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Tremont, The bulk, or 42 percent of the 8.7 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 20 percent of the space. In sales, Tremont has near average sales volume among other neighborhoods with $70.6 million in sales volume in the last two years and is the 16th highest in Bronx. For development, Tremont has near average amount of major developments among other neighborhoods and is the 8th highest in Bronx. It had 908,429 square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 10 of the 23 commercial properties representing 188,792 square feet of the 512,456 square feet. The largest owner is Aquinas Housing Corporation, followed by Belmont Arthur Avenue Local Development Corporation and then Donna Shavolian Hedvat. On the tax block, there was one new building construction project filed totaling 140,556 square feet. It is a 177-unit, 140,556 square-foot residential (R-2) building submitted by Foxy Management and filed by Jeff Fox with plans filed August 17, 2018 and permitted April 16, 2019.

The owner

The owners according to the Department of Housing Preservation and Development includes Barry Singer, head officer and Daniel Caller, agent. The business entity is 620 East 178 Llc.

The surrounding

This is the first commercial real estate event of interest identified within the 400-foot radius of 620 East 178 Street in the past 24 months.

Direct link to the property’s ACRIS page and link to DOB NOW portal.