Bluestone Group signs $8.5M refi loan with TriState Capital Bank for specialty in Longwood

Bluestone Group through the entity 609 Jackson Holdings LLC as borrower signed a refi loan with lender TriState Capital Bank through the entity Tristate Capital Bank valued at $8.5 million for the specialty building (W3) at 609 Jackson Avenue in Longwood, Bronx.
The deal closed on May 31, 2023 and was recorded on June 23, 2023. The prior lender was TriState Capital Bank which held debt that had an original loan amount of $8.5 million.The property has 33,250 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $255 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 owner bought the property on November 17, 2014, for $2.2 million. The signatory for Bluestone Group was Elimelech Tabak and Robert Gambitsky. The signatory for TriState Capital Bank was Robert Gambitsky.

The property

The specialty building in Longwood has 33,250 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,010 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 $3.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $1,000 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on March 5, 2018. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Longwood, The bulk, or 44 percent of the 22.3 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 27 percent of the space. In sales, Longwood has had very little sales volume relative to other neighborhoods with $239.3 million in sales volume in the last two years. For development, Longwood has had very little major development activity relative to other neighborhoods.It had 828,790 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 13 of the 33 commercial properties representing 899,894 square feet of the 1,077,281 square feet. The largest owner is Shimshon Grunstein, followed by New York City Housing Authority and then Neil Fink.
On the tax block, there were five new building construction projects totaling 98,612 square feet. The largest is a 52-unit, 38,753 square-foot residential (R-2) building submitted by Shimshon Grunstein and filed by Shimshon Grunstein with plans filed February 20, 2020 and permitted December 17, 2020. The second largest is a 25-unit, 26,564 square-foot residential (R-2) building submitted by Galaxy General Contracting and filed by Steve Zervoudis with plans filed June 4, 2015 and permitted January 13, 2017.

The majority, or 74 percent of the 1.1 million square feet of built space are elevator buildings, with walkup buildings next occupying 17 percent of the space.

The borrower

The PincusCo database currently indicates that Bluestone Group owned at least 14 commercial properties with 53 residential units in New York City with 205,110 square feet and a city-determined market value of $58.1 million. (Market value is typically about 50% of actual value.) The portfolio has $59.4 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 35 percent of the 205,110 square feet of built space are mixed-use properties, with industrial properties next occupying 27 percent of the space. The bulk, or 69 percent of the built space, is in Manhattan, with Brooklyn next at 23 percent of the space.

Direct link to Acris document. link