Chaim Schwartz pays $6.5M to Atlantis Development for two walkup properties in Norwood

Chaim Schwartz through the entity Parkside Tower LLC paid $6.5 million to Atlantis Development through the entity 3317 Parkside LLC for eight-unit residential walkup building at 3315 Parkside Place and the eight-unit residential walkup building at 3317 Parkside Place in Norwood, Bronx.
The deal closed on March 10, 2022 and was recorded on March 31, 2022.

The two properties have 12,300 square feet of built space and 1,086 square feet of additional air rights for a total buildable of 12,450 square feet according to PincusCo analysis of city data. The sale price per built square foot is $528 and the price per buildable square foot is $522 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 Atlantis Development was Robert Lumaj. The signatory for Chaim Schwartz was Chaim Schwartz.

The property

The 3315 Parkside Place parcel has frontage of 28 feet and is 95 feet deep with a total lot size of 2,060 square feet. The zoning is R7B which allows for up to 3 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $380,900.

Violations and lawsuits

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

Development

For the tax lot buildings, one out of the two buildings received an initial certificate of occupancy in the last ten years. On these lots, there is one active new building construction project for an eight-unit, 5,412-square-foot R-2 building. The project was developed by Robert Lumaj with plans filed February 6, 2018 and permitted March 18, 2020.

The neighborhood

In Norwood, the bulk, or 45 percent of the 19.9 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 27 percent of the space. In sales, Norwood has had very little sales volume relative to other neighborhoods with $119.4 million in sales volume in the last two years. For development, Norwood has had very little major development activity relative to other neighborhoods.It had 281,369 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On the tax block of 3315 Parkside Place, PincusCo has identified the owners of nine of the 23 commercial properties representing 310,993 square feet of the 668,753 square feet. The largest owner is 3254 Parkside Realty LLC, followed by Yechiel Weinberger and then Fatmir Krasniqi. There are nine active new building construction projects totaling 164,139 square feet. The largest is a 98-unit, 66,964-square-foot R-2 building developed by Glenn Palilla with plans filed December 6, 2018 and permitted May 18, 2020. The second largest is a 55-unit, 35,450-square-foot R-2 building developed by Albert Gjonbalaj with plans filed March 6, 2018 and it has not been permitted yet.

The majority, or 57 percent of the 759,852 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 27 percent of the space.

The seller

The PincusCo database currently indicates that Atlantis Development owned at least four commercial properties with 47,289 square feet and a city-determined market value of $1.7 million. (Market value is typically about 50% of actual value.) The portfolio has $12.9 million in debt, borrowed from Northeast Community Bank. Within the portfolio, the bulk, or 89 percent of the 47,289 square feet of built space are residential elevator properties, with development properties next occupying 11 percent of the space. They are all located in Bronx.

The buyer

The PincusCo database, which is incomplete, currently indicates that Chaim Schwartz owned at least three commercial properties with 12,640 square feet and a city-determined market value of $1.9 million. (Market value is typically about 50% of actual value.) The portfolio has $8.7 million in debt, borrowed from Golden Bridge Funding and Toorak Capital Partners. Within the portfolio, the bulk, or 100 percent of the 12,640 square feet of built space are residential walkup properties, with residential elevator properties next occupying 0 percent of the space. The bulk, or 56 percent of the built space, is in Brooklyn, with Bronx next at 44 percent of the space.

Surrounding

Within a 400-foot radius of N/A Parkside Place, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
One of those five items was a sale which 3254 Parkside Realty LLC bought the 98,158-square-foot, 99-unit rental (D9) on 3254 Parkside Place for $16.1 million from Spaxel on November 23, 2021.
Of those five items, four were loans above $5 million totaling $53.5 million. The most recent of the four was 3254 Parkside Realty LLC which borrowed $22.8 million from Metropolitan Commercial Bank secured by the 98,158-square-foot, 99-unit rental (D9) on 3254 Parkside Place on November 23, 2021.

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