Beitel Group pays $23.3M to expand dev site in Mott Haven

The Beitel Group paid $23.3 million to add two parcels to a development site in Mott Haven, the Bronx, that now is composed on three parcels. The first was purchased in 2020 for $9 million.
On these parcels, the Beitel Group filed plans for a 470-unit, 306,893-square-foot (residential) R-2 building on January 13, 2022 which was permitted on March 17, 2022.

In the first, the Beitel Group through the entity Walton Street GC Developments LLC paid $15.3 million to John Lage for the industrial building (E9) at 270 Walton Avenue in Mott Haven, Bronx.
The deal closed on November 23, 2022 and was recorded on December 6, 2022. The property has 15,800 square feet of built space and 82,592 square feet of additional air rights for a total buildable of 98,457 square feet according to PincusCo analysis of city data. The sale price per built square foot is $968 and the price per buildable square foot is $155 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 John Lage was John Lage. The signatory for Beitel Group was Ben Beitel. The contract date is April 1, 2019. The Beitel Group bought the three parcels for a total of $32.3 million. The first parcel was purchased for $9 million in 2020.

In the second, the Beitel Group through the entity Walton Street Gc Developments LLC paid $8 million to John Lage through the entity 315 R.E. Corp for industrial building (GW) at 315 Grand Concourse in Mott Haven, Bronx. The deal closed on November 23, 2022 and was recorded on December 6, 2022.The property has 10,183 square feet of built space and 86,574 square feet of additional air rights for a total buildable of 96,693 square feet according to PincusCo analysis of city data. The sale price per built square foot is $785 and the price per buildable square foot is $82 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 John Lage was John Lage. The signatory for Beitel Group was Ben Beitel

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Beitel Group purchased one property in one transaction for a total of $41.5 million and sold one properties in one transactions for a total of $2.8 million over the past 24 months.
The seller John Lage had not purchased any other properties and had not sold any properties over the same time period. The 15,800-square-foot property generated revenue of $207,928 or $13 per square foot, according to the most recent income and expense figures.

The property

The 270 Walton Avenue parcel has frontage of 150 feet and is 81 feet deep with a total lot size of 16,355 square feet. The lot is irregular. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1 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 Mott Haven, the bulk, or 42 percent of the 40.1 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 25 percent of the space. In sales, Mott Haven has 2.2 times the average sales volume among other neighborhoods with $776.8 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven is the 10th most active neighborhood among other neighborhoods. It had 4.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 11 commercial properties representing 258,934 square feet of the 372,446 square feet. The largest owner is Altmark Group, followed by Beitel Group and then Family Life Academy Charter Schools.
On the tax block, there were four new building construction projects totaling 753,371 square feet. The largest is a 470-unit, 306,893-square-foot R-2 building developed by Binyamin Beitel with plans filed January 13, 2022 and permitted March 17, 2022. The second largest is a 195-unit, 181,092-square-foot R-2 building developed by Joshua Weissman with plans filed October 31, 2022 and it has not been permitted yet.

The majority, or 69 percent of the 372,446 square feet of built space are industrial buildings, with specialty buildings next occupying 31 percent of the space.

The seller

The PincusCo database currently indicates that John Lage owned at least one commercial property in New York City with 15,800 square feet and a city-determined market value of $1 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Bronx.

The buyer

The PincusCo database currently indicates that Beitel Group owned at least eight commercial properties in New York City with 313,737 square feet and a city-determined market value of $19.6 million. (Market value is typically about 50% of actual value.) The portfolio has $131.8 million in debt, with top three lenders as MF1 Capital, BridgeCity Capital, and Starwood Capital Group respectively. Within the portfolio, the bulk, or 34 percent of the 313,737 square feet of built space are elevator properties, with industrial properties next occupying 33 percent of the space. The bulk, or 67 percent of the built space, is in Brooklyn, with Bronx next at 33 percent of the space.

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