Bridge Asset Management pays $3.34M for dev site in Morrisania

Bridge Asset Management paid $3.34 million for two adjacent development parcels at 1103 and 1109 Washington Avenue in Morrisania in two transactions.

In the first, Bridge Asset Management through the entity 1103 & 1109 Washington Ave LLC paid $3 million to Shadan Harooni through the entity 1109 Washington Avenue Realty LLC for the industrial building (G2) at 1109 Washington Avenue in Morrisania, Bronx. The expected use is ground up development.
The deal closed on July 18, 2024 and was recorded on August 14, 2024. The property has 4,640 square feet of built space and 25,491 square feet of additional air rights for a total buildable of 30,134 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $646 and the price per buildable square foot is $99 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.)

In the second, Bridge Asset Management through the entity 1103 & 1109 Washington Ave LLC paid $345,000 to Radame Perez II through the entity Skyline Two for the industrial building (G7) at 1103 Washington Avenue in Morrisania, Bronx. The expected use is cash flowing. The deal closed on July 18, 2024 and was recorded on August 14, 2024. The property has zero square feet of built space and 36,092 square feet of additional air rights for a total buildable of 36,092 square feet according to a PincusCo analysis of city data.

The contract date for both transactions was January 18, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Bridge Asset Management had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Shadan Harooni had not purchased any other properties and sold one properties in one transaction for a total of $2.8 million over the same time period. The 4,640-square-foot property generated revenue of $69,289 or $15 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Morrisania has 4,640 square feet of built space and 25,491 square feet of additional air rights for a total buildable of 30,134 square feet according to a PincusCo analysis of city data. The parcel has frontage of 49 feet and is 177 feet deep with a total lot size of 8,760 square feet. The lot is irregular. The zoning is M1-1/R7-2 which allows for up to 1 times floor area ratio (FAR) for manufacturing and up to 3.44 times FAR for residential. The city-designated market value for the property in 2022 is $314,000.

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 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 $1 million on this tax lot.

The neighborhood

In Morrisania, The majority, or 52 percent of the 25.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 20 percent of the space. In sales, Morrisania has near average sales volume among other neighborhoods with $249 million in sales volume in the last two years and is the 2nd highest in Bronx. For development, Morrisania has had very little major development activity relative to other neighborhoods.It had 422,329 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 36 commercial properties representing 70,559 square feet of the 186,316 square feet. The largest owner is Workforce Housing Group, followed by Kwabena Adjei and then Al-Ridwane Muslim Center.
On the tax block, there were two new building construction projects totaling 50,104 square feet. The largest is a 25-unit, 25,480 square-foot residential (R-2) building submitted by Emil Friedman and filed by Emil Friedman with plans filed September 9, 2021 and permitted April 29, 2022. The second largest is a 30-unit, 24,624 square-foot residential (R-2) building submitted by NYC Department of Housing Preservation and Development and filed by Rona Reodica with plans filed September 22, 2023 and it has not been permitted yet.

The majority, or 39 percent of the 186,316 square feet of built space are industrial buildings, with elevator buildings next occupying 27 percent of the space.

The seller

The PincusCo database currently indicates that Shadan Harooni owned at least one commercial property in New York City with 39,118 square feet and a city-determined market value of $3.5 million. (Market value is typically about 50% of actual value.) The portfolio has $10 million in debt, borrowed from Bethpage Commercial. The portfolio consists of at least a single specialty property. It is located in Bronx.

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