Barone Management signs ground lease valued at $5.3M for development property in Wakefield

Barone Management as tenant through the entity Bmad Wp Road LLC signed a 99-year ground lease valued at $5.3 million with Vincent Gargiulo and Suzette Snider through the entity Jasmut Associates LLC as landlord for the specialty building (P5) at 4035 White Plains Road in Wakefield, Bronx.
The deal closed on August 3, 2022 and was recorded on September 1, 2022. The property has 23,064 square feet of built space and 5,111 square feet of additional air rights for a total buildable of 28,231 square feet according to PincusCo analysis of city data. The sale price per built square foot is $229 and the price per buildable square foot is $187 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 Vincent Gargiulo 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.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Barone Management purchased five properties in five transactions for a total of $36.9 million and has no record it sold any properties over the past 24 months.
The seller Vincent Gargiulo had not purchased any other properties and had not sold any properties over the same time period.

The property

The 4035 White Plains Road parcel has frontage of 92 feet and is 125 feet deep with a total lot size of 11,618 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.8 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 not received any significant violations 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 Wakefield, the bulk, or 34 percent of the 9.3 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 27 percent of the space. In sales, Wakefield has had very little sales volume relative to other neighborhoods with $110.9 million in sales volume in the last two years. For development, Wakefield has had very little major development activity relative to other neighborhoods.It had 591,158 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 three of the nine commercial properties representing 23,455 square feet of the 58,628 square feet. The largest owner is AUDREY D. PHILLIBERT of AUDREY D, followed by Sopher Group and then Ronen Cohen.
There are no active new building construction projects on this tax block.

The majority, or 47 percent of the 58,628 square feet of built space are walkup buildings, with retail buildings next occupying 41 percent of the space.

The buyer

The PincusCo database currently indicates that Barone Management owned at least nine commercial properties in New York City with 467,991 square feet and a city-determined market value of $39.8 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 57 percent of the 467,991 square feet of built space are elevator properties, with office properties next occupying 22 percent of the space. The bulk, or 57 percent of the built space, is in Brooklyn, with Queens next at 28 percent of the space.

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