Atlantic Development, Zeta Charter sign $54.6M construction loan with M&T Bank for 118K school project in Inwood

Atlantic Development Group and Zeta Charter Schools through the entity 400 West 219 LLC as borrower signed a new construction loan with lender M&T Bank through the entity M&T Plaza valued at $54.6 million for the development project at 400 West 219th Street in Inwood, Manhattan.
The deal closed on March 24, 2022 and was recorded on April 20, 2022. The prior lender was M&T Bank which held debt that had an original loan amount of $10 million.The property has 8,656 square feet of built space and 111,800 square feet of additional air rights for a total buildable of 120,400 square feet according to PincusCo analysis of city data. The loan price per buildable square foot is $453 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 March 1, 2021, for $16 million. The signatory for Atlantic Development Group and Zeta Charter Schools was Peter Fine and Emily Kim.

The property

The 400 West 219th Street parcel has frontage of 200 feet and is 100 feet deep with a total lot size of 20,000 square feet. The zoning is C6-2 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential. The city-designated market value for the property in 2022 is $941,000. The most recent loan totaled $10 million and was provided by M&T Bank on March 1, 2021.

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 $2,500 in ECB penalties in the last year.

Development

On these lots, there is one active new building construction project for a 118,231-square-foot school (E) building. The project was developed by Peter Fine with plans filed February 8, 2021 and permitted October 6, 2021.

The neighborhood

In Inwood, the bulk, or 40 percent of the 17.3 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 37 percent of the space. In sales, Inwood has 1.3 times the average sales volume among other neighborhoods with $347 million in sales volume in the last two years and is the 26th highest in Manhattan. For development, Inwood has 1.8 times the average amount of major developments relative to other neighborhoods and is the 12th highest in Manhattan. It had 1.7 million 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 one of the eight commercial properties representing 8,656 square feet of the 83,579 square feet. The identified owner is Bolivar Development. There is one active new building construction project totaling 118,231 square feet. It is a 118,231-square-foot E building developed by Peter Fine with plans filed February 8, 2021 and permitted October 6, 2021.

The majority, or 58 percent of the 83,579 square feet of built space are industrial buildings, with office buildings next occupying 42 percent of the space.

The borrower

The PincusCo database currently indicates that Atlantic Development Group owned at least 39 commercial properties with 3,517,573 square feet and a city-determined market value of $225.1 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 94 percent of the 3,517,573 square feet of built space are residential elevator properties, with specialty properties next occupying 3 percent of the space. The bulk, or 86 percent of the built space, is in Bronx, with Manhattan next at 11 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 400 West 219th Street that occurred over the past 24 months.

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