Atlantic Development signs $38.6M construction loan for school in Bedford Park

Atlantic Development Group through the entity 203 Street North LLC as borrower signed a new construction loan with lender M&T Bank valued at $38.6 million for the development (V0) at 263 East 203rd Street in Bedford Park, Bronx.
On the lot, there is one active new building construction project for a 87,140 square-foot school (E) building. The project was submitted by Peter Fine of Atlantic Development Group with plans filed November 16, 2021 and permitted July 2022.
The loan closed on February 22, 2023 and was recorded on March 6, 2023.
The signatory for Atlantic Development Group was Peter Fine.

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 $11,250 in ECB penalties and $13,450 in OATH penalties in the last year.

The neighborhood

In Bedford Park, the bulk, or 48 percent of the 19.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Bedford Park has the 21st highest sale turnover among other neighborhoods in Bronx with $74.8 million in sales volume in the last two years. For development, Bedford Park has 1.2 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Bronx. It had 1.2 million 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 seven of the 25 commercial properties representing 218,533 square feet of the 435,398 square feet. The largest owner is Samantha H. Souvatzis As Trustee, followed by Rajive Maret and then Karen Saar.
On the tax block, there were four new building construction projects totaling 187,921 square feet. The largest is a 87,140-square-foot E building developed by Peter Fine with plans filed November 16, 2021 and permitted July 1, 2022. The second largest is a 108-unit, 71,133-square-foot R-2 building developed by James Dill with plans filed September 10, 2018 and permitted September 23, 2019.

The majority, or 75 percent of the 435,398 square feet of built space are elevator buildings, with walkup buildings next occupying 17 percent of the space.

The borrower

The PincusCo database currently indicates that Atlantic Development Group owned at least 56 commercial properties in New York City with 4,882,566 square feet and a city-determined market value of $272.3 million. (Market value is typically about 50% of actual value.) The portfolio has $640.1 million in debt, with top three lenders as JLL, Signature Bank, and M&T Bank respectively. Within the portfolio, the bulk, or 96 percent of the 4,882,566 square feet of built space are elevator properties, with specialty properties next occupying 2 percent of the space. The bulk, or 88 percent of the built space, is in Bronx, with Manhattan next at 10 percent of the space.

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