Beitel Group pays $41.5M to Weber family for 470-unit dev site in Mott Haven

Beitel Group through the entity 120 East 144 LLC paid $41.5 million to Susan Weber through the entity Tori Realty Corp for the commercial building at 120 East 144th Street in Mott Haven, Bronx. Beitel Group filed plans in January for a 470-unit residential building. Beitel obtained a $29 million acquisition loan from BridgeCity Capital.
The deal closed on March 30, 2022 and was recorded on April 11, 2022.

The property has 82,956 square feet of built space and 185,290 square feet of additional air rights for a total buildable of 268,136 square feet according to PincusCo analysis of city data. The sale price per built square foot is $500 and the price per buildable square foot is $154 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 Susan Weber was Susan Weber. The signatory for Beitel Group was Binyamin Beitel. The property was owned by Susan Weber, and acquired by Fred Weber and was home to Weber Closeout, a discount retailer that once had multiple locations including on West 32nd Street near Penn Station. Beitel Group has at least seven properties in New York City, all commercial but for one. They are located in Brooklyn and the Bronx and have a total of just over 224,000 square feet.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Beitel Group purchased one property in one transactions for a total of $9 million and sold one property in one transaction for a total of $2.8 million over the past 24 months.
The seller Susan Weber had not purchased any other properties and had not sold any properties over the same time period. The 82,956-square-foot property generated revenue of $1.5 million or $18 per square foot, according to the most recent income and expense figures.

The property

The 120 East 144th Street parcel has frontage of 202 feet and is 225 feet deep with a total lot size of 44,541 square feet. The lot is irregular. The zoning is M1-4/R8A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.1 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

On these lots, there is one active new building construction project for a 470-unit, 401,436-square-foot R-2 building. The project was developed by Binyamin Beitel with plans filed January 13, 2022 and it has not been permitted yet.

The neighborhood

In Mott Haven, the bulk, or 38 percent of the 43.4 million square feet of commercial built space are residential elevator buildings, with industrial buildings next occupying 23 percent of the space. In sales, Mott Haven has 2.7 times the average sales volume among other neighborhoods with $744 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven is the 7th 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 10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 11 commercial properties representing 160,178 square feet of the 372,446 square feet. The largest owner is Altmark Group, followed by Family Life Academy Charter Schools and then John Holsapple. There are three active new building construction projects totaling 742,093 square feet. The largest is a 470-unit, 401,436-square-foot R-2 building developed by Binyamin Beitel with plans filed January 13, 2022 and it has not been permitted yet. The second largest is a 96-unit, 89,672-square-foot R-2 building developed by Binyamin Beitel with plans filed August 9, 2021 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.

Surrounding

Within a 400-foot radius of 120 East 144th Street, PincusCo identified 10 commercial real estate items of interests occurred over the past 24 months.
Of those 10 items, two were in new building development. There were two new building permits. The most recent of these two items was a permit on May 10, 2021 for a 175,802-square-foot R-2 building with 206 residential units at 414 Gerard Avenue.
Of those 10 items, three were sales above $5 million totaling $35.3 million. The most recent of the three was Family Life Academy Charter Schools which bought the 14,400-square-foot, one-unit industrial (W3) on 370 Gerard Avenue for $12.3 million from Rosemawr Management on January 11, 2021.
Of those 10 items, five were loans above $5 million totaling $236.6 million. The most recent of the five was Family Life Academy Charter Schools which borrowed $13.8 million from Build NYC Resource Corporation secured by the 14,400-square-foot, one-unit industrial (W3) on 370 Gerard Avenue on January 11, 2021.

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