Atlantic Development Group signs $11.8M refi with JLL for 111-unit rental in Bedford Park

Atlantic Development Group through the entity Villa Avenue Associates, L.P. as borrower signed a refi loan with lender JLL through the entity JLL Real Estate Capital, LLC valued at $11.8 million for the 111-unit residential elevator building (D3) at 3121 Villa Avenue in Bedford Park, Bronx.
The deal closed on September 15, 2022 and was recorded on September 23, 2022. The prior lender was Fannie Mae which held debt that had an original loan amount of $6 million. The property has 106,586 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $110 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 May 24, 2006, for $3.3 million. The signatory for Atlantic Development Group was Peter Fine. The signatory for JLL was Alyssa D. Berquam.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Peter Fine, head officer and Elvis Perez, agent. The business entities are Wavecrest Management Team and Villa Avenue Associates,L P. The 106,586-square-foot property generated revenue of $1.6 million or $15 per square foot, according to the most recent income and expense figures.

The property

The 3121 Villa Avenue parcel has frontage of 130 feet and is 100 feet deep with a total lot size of 14,144 square feet. The lot is irregular. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The property has a 421A exemption that started in 2009.0 and expires in 2034.0. The city-designated market value for the property in 2022 is $4.6 million.

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, $625 in ECB penalties, 76 housing violations, $1,475 in OATH penalties, and one housing litigation in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of four of the 17 commercial properties representing 154,172 square feet of the 207,262 square feet. The largest owner is Atlantic Development Group, followed by Stagg Group and then East Coast Holdings.
There is one active new building construction project totaling 39,129 square feet. It is a 57-unit, 39,129-square-foot R-2 building developed by Max Kozlowitz with plans filed January 18, 2018 and permitted May 5, 2022.

The majority, or 65 percent of the 207,262 square feet of built space are elevator buildings, with walkup buildings next occupying 19 percent of the space.

The borrower

The PincusCo database currently indicates that Atlantic Development Group owned at least 70 commercial properties in New York City with 5,426,226 square feet and a city-determined market value of $351.1 million. (Market value is typically about 50% of actual value.) The portfolio has $628.3 million in debt, with top three lenders as JLL, Signature Bank, and M&T Bank respectively. Within the portfolio, the bulk, or 86 percent of the 5,426,226 square feet of built space are elevator properties, with rental condo properties next occupying 9 percent of the space. The bulk, or 84 percent of the built space, is in Bronx, with Manhattan next at 14 percent of the space.

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