Bronx Pro, nonprofit, pay $10.2M for 187-unit dev site in Mt. Hope

Bronx Pro Group and Services for the UnderServed through the entity 1770 Jerome Housing Development Fund Corporation paid $10.2 million to Joseph Barone through the entity Jaybar Realty Corp for the retail building (K1) at 1770 Jerome Avenue in Mt Hope, Bronx. The expected use is ground up development of a 187-unit affordable housing rental.
The deal closed on October 18, 2024 and was recorded on October 23, 2024. The property has 11,150 square feet of built space and 84,220 square feet of additional air rights for a total buildable of 95,302 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $914 and the price per buildable square foot is $107 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 Joseph Barone was Joseph Barone. The signatory for Bronx Pro Group and Services for the UnderServed was Douglas Walerstein of Services for the UnderServed. The contract date was May 8, 2024. The Bronx Pro Group is the beneficial owner through Magistro Family III LLC, while SUS is the nonprofit. Joseph Barone bought the building in August 1972, or 52 years ago for $20,625 subject to a $20,000 purchase money mortgage.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Bronx Pro Group purchased one property in one transaction for a total of $14.1 million and has no record it sold any properties over the past 24 months.
The seller Joseph Barone had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail building in Mt Hope has 11,150 square feet of built space and 84,220 square feet of additional air rights for a total buildable of 95,302 square feet according to a PincusCo analysis of city data. The parcel has frontage of 146 feet and is 102 feet deep with a total lot size of 15,831 square feet. The lot is irregular. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.5 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 $300 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 neighborhood

In Mt Hope, The majority, or 57 percent of the 11 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Mt Hope has the 20th highest sale turnover among other neighborhoods in Bronx with $65.9 million in sales volume in the last two years. For development, Mt Hope has had very little major development activity relative to other neighborhoods.It had 777,708 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 15 commercial properties representing 295,130 square feet of the 431,971 square feet. The largest owner is Black Spruce Management, followed by Finkelstein Timberger East Real Estate and then Pistilli Realty Group.
On the tax block, there were two new building construction projects totaling 226,696 square feet. The largest is a 103-unit, 126,199 square-foot residential (R-2) building submitted by Procida Companies and filed by Mario Procida with plans filed February 23, 2017 and permitted May 5, 2021. The second largest is a 175-unit, 100,497 square-foot residential (R-2) building submitted by ACMH and filed by Ronald Lasker with plans filed February 15, 2024 and it has not been permitted yet.

The majority, or 50 percent of the 431,971 square feet of built space are elevator buildings, with walkup buildings next occupying 31 percent of the space.

The buyer

The PincusCo database currently indicates that Bronx Pro Group owned at least 40 commercial properties with 1,360 residential units in New York City with 1,483,644 square feet and a city-determined market value of $82 million. (Market value is typically about 50% of actual value.) The portfolio has $181.7 million in debt, with top three lenders as NYC Housing, JPMorgan Chase, and Community Preservation Corporation respectively. Within the portfolio, the bulk, or 62 percent of the 1,483,644 square feet of built space are elevator properties, with walkup properties next occupying 28 percent of the space. The bulk, or 93 percent of the built space, is in Bronx, with Manhattan next at 7 percent of the space.
The PincusCo database currently indicates that Services For The Underserved owned at least seven commercial properties with 209 residential units in New York City with 207,869 square feet and a city-determined market value of $15.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 41 percent of the 207,869 square feet of built space are walkup properties, with development properties next occupying 39 percent of the space. The bulk, or 39 percent of the built space, is in Bronx, with Brooklyn next at 37 percent of the space.

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