Charter school pays $4M to Starwood for commercial condo unit in Longwood

Zeta Charter Schools through the entity Zeta Charter Schools, Inc. paid $4 million to Starwood Capital Group through the entity 425 Westchester Lease Owner, L.L.C for a commercial condominium unit at 425 Westchester Avenue in Longwood, Bronx.
The deal closed on July 15, 2022 and was recorded on August 4, 2022. This is a new building developed by Starwood that AB Capstone originally filed plans for in 2019.
The signatory for Starwood Capital Group was Daniel Schwaegler. The signatory for Zeta Charter Schools was Emily Kim.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Zeta Charter Schools had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Starwood Capital Group had not purchased any other properties and had not sold any properties over the same time period.

The property

PincusCo cannot determine the lot area of the 425 Westchester Avenue parcel at this time.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

The block

On this tax block, PincusCo has identified the owners of four of the 22 commercial properties representing 167,543 square feet of the 470,173 square feet. The largest owner is Starwood Capital Group, followed by Top Rock Holdings and then Uzi Shvut.
There is one active new building construction project totaling 124,249 square feet. It is a N/A-unit, 124,249-square-foot E building developed by Meir Babaev with plans filed January 7, 2019 and permitted December 11, 2020.

the majority, or 38 percent of the 470,173 square feet of built space are mixed-use buildings, with specialty buildings next occupying 31 percent of the space.

The seller

The PincusCo database currently indicates that Starwood Capital Group owned at least seven commercial properties in New York City with 371,348 square feet and a city-determined market value of $86.7 million. (Market value is typically about 50% of actual value.) The portfolio has $189.9 million in debt, with top three lenders as Barclays, Centennial Bank, and JPMorgan Chase respectively. Within the portfolio, the bulk, or 54 percent of the 371,348 square feet of built space are hotel properties, with specialty properties next occupying 44 percent of the space. The bulk, or 46 percent of the built space, is in Brooklyn, with Bronx next at 40 percent of the space.

The buyer

The PincusCo database currently indicates that Zeta Charter Schools owned at least one commercial property in New York City with 8,656 square feet and a city-determined market value of $941,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Manhattan.

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