Barone Management signs ground lease valued at $4.1M for redevelopment in Melrose

Barone Management through the entity BM Courtlandt LLC paid $4.1 million to Daniel Dee Snider and Suzette Snider through the entity Lancourt Associates LLC for the specialty building (I5) at 629 Courtlandt Avenue in Melrose, Bronx.
The deal closed on August 3, 2022 and was recorded on September 2, 2022. The property has 24,248 square feet of built space and 2,064 square feet of additional air rights for a total buildable of 26,309 square feet according to PincusCo analysis of city data. The sale price per built square foot is $169 and the price per buildable square foot is $156 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 Daniel Dee Snider and Suzette Snider was Daniel Dee Snider and Suzette Snider. The signatory for Barone Management was Scott Barone. This is a 99-year ground lease. This is the third ground lease Barone Management has recorded this month with Daniel Dee Snider and Suzette Snider as landlord signatories, including another parcel in Wakefield.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Barone Management purchased or ground leased six properties in six transactions for a total of $42.2 million and has no record it sold any properties over the past 24 months.

The property

The 629 Courtlandt Avenue parcel has frontage of 76 feet and is 100 feet deep with a total lot size of 7,648 square feet. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.9 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 $300 in OATH penalties 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 neighborhood

In Melrose, the majority, or 58 percent of the 7.9 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 17 percent of the space. In sales, Melrose has the 25th highest sale turnover among other neighborhoods in Bronx with $48 million in sales volume in the last two years. For development, Melrose has had very little major development activity relative to other neighborhoods.It had 225,633 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 23 commercial properties representing 566,940 square feet of the 717,084 square feet. The two identified owners are City of New York and Lemle & Wolff.
There is one active new building construction project totaling 8,260 square feet. It is a 8,260-square-foot B building developed by David Manesh with plans filed September 23, 2011 and permitted April 17, 2015.

the majority, or 79 percent of the 717,084 square feet of built space are specialty buildings, with walkup buildings next occupying 14 percent of the space.

The buyer

The PincusCo database currently indicates that Barone Management owned at least 10 commercial properties in New York City with 491,055 square feet and a city-determined market value of $42.6 million. (Market value is typically about 50% of actual value.) The portfolio has $61.1 million in debt, with top three lenders as Metropolitan Commercial Bank, Berkshire Group, and Fieldpoint Private Bank & Trust respectively. Within the portfolio, the bulk, or 54 percent of the 491,055 square feet of built space are elevator properties, with office properties next occupying 21 percent of the space. The bulk, or 54 percent of the built space, is in Brooklyn, with Queens next at 27 percent of the space.

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