Builders Group USA pays $4.2M to Pogostin family for dev site in Morrisania

Builders Group USA through the entity 544 East 171 Street LLC paid $4.2 million to the Pogostin family through the entity Crotona Realty Corp for the industrial building (F1) at 544 East 171st Street in Morrisania, Bronx. The expected use is ground up development.
On the lot, there is one active major alteration construction project, X01048391, for a 44-unit, 13,762 square-foot building. The project was submitted by Builders Group USA and filed by Yitzi Salamon with plans filed May 22, 2024 and it has not been permitted yet.
The deal closed on November 18, 2024 and was recorded on December 3, 2024. The property has 13,864 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $299 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 Marc Pogostin was Joseph Pogostin, Marc Pogostin, and Richard Pogostin. The signatory for Builders Group USA was Yitzchok Salamon. The contract date was February 28, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Builders Group USA purchased one property in one transaction for a total of $7 million and has no record it sold any properties over the past 24 months.
The seller Marc Pogostin purchased two properties in two transactions for a total of $6.5 million and had not sold any properties over the same time period.

The property

The industrial building in Morrisania has 13,864 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 31 feet and is 100 feet deep with a total lot size of 3,471 square feet. The lot is irregular. 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 $712,000.

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.

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 $261.7 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 621,013 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 17 commercial properties representing 164,360 square feet of the 201,527 square feet. The largest owner is Phipps Houses, followed by Dunn Development and then Emerald Equity Group.
There are no active new building construction projects on this tax block.

The majority, or 85 percent of the 201,527 square feet of built space are walkup buildings, with retail buildings next occupying 9 percent of the space.

The seller

The PincusCo database currently indicates that Marc Pogostin owned at least six commercial properties with six residential units in New York City with 73,605 square feet and a city-determined market value of $7.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 94 percent of the 73,605 square feet of built space are industrial properties, with mixed-use properties next occupying 6 percent of the space. The bulk, or 94 percent of the built space, is in Bronx, with Brooklyn next at 6 percent of the space.

The buyer

The PincusCo database currently indicates that Builders Group USA owned at least one commercial property in New York City with 0.0 square feet and a city-determined market value of $288,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property.

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