Beacon Communities, MBD sign 99-year ground lease with NYCHA valued at $34.4M, PACT deal

Beacon Communities and MBD Community Housing through the entity Bbm Brc LLC signed a 99-year ground lease valued at $34.3 million with the landlord, the New York City Housing Authority for the 307-unit residential elevator building (D1) at 3475 Bivona Street in Eastchester, Bronx, 231-unit residential elevator building (D3) at 3550 Bivona Street in Eastchester, Bronx, and 241-unit residential elevator building (D6) at 2440-2456 Boston Road in Allerton, Bronx.
The deal closed on September 26, 2024 and was recorded on October 7, 2024. The four properties have 811,921 square feet of built space and 99,121 square feet of additional air rights for a total buildable of 824,391 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $42 and the price per buildable square foot is $41 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.)
This is a 99-year lease from September 26, 2024 to September 25, 2123, as part of the Permanent Affordability Commitment Together (PACT) program with $419.6 million to “Renovate Boston Secor, Boston Road Plaza, and Middletown Plaza… Closing is a key milestone in renovating 951 apartments.”

The signatories for the new tenants were Dara Kovel of Beacon Communities and Derrick A. Lovett of MBD Community Housing.

The property

The first parcel has two buildings with frontage of 842 feet and is 939 feet deep with a total lot size of 412,500 square feet. The lot is irregular. The zoning is R4 which allows for up to 0.75 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $17 million.
The second parcel has four buildings with frontage of 336 feet and is 641 feet deep with a total lot size of 220,441 square feet. The lot is irregular. The zoning is R4 which allows for up to 0.75 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $15.1 million.
The third parcel has two buildings with frontage of 545 feet and is 200 feet deep with a total lot size of 74,100 square feet. The lot is irregular. 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 $10.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received six DOB violations, $11,875 in ECB penalties, and $17,400 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 $1 million on this tax lot.

The block

On the tax block of 3475 Bivona Street, PincusCo has identified the owners of three of the 42 commercial properties representing 500,445 square feet of the 743,960 square feet. The two identified owners are New York City Housing Authority and City Of New York.
On the tax block, there were two new building construction projects totaling 11,241 square feet. The largest is a 11-unit, 8,910 square-foot residential (R-2) building submitted by Yaron Ziegel and filed by Yaron Ziegel with plans filed May 15, 2023 and permitted August 1, 2023. The second largest is a 2,331 square-foot business (B) building submitted by Elan Abneri with plans filed April 17, 2020 and it has not been permitted yet.

The majority, or 67 percent of the 743,960 square feet of built space are elevator buildings, with specialty buildings next occupying 17 percent of the space.

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