Chestnut Holdings pays $4.7M for retail in Kingsbridge Heights

Chestnut Holdings of New York through the entity 3071 Bailey LLC paid $4.7 million to Herbert Freedman through the entity Bailey Avenue Holding LLC for the retail building (K1) at 3071 Bailey Avenue in Kingsbridge Heights, Bronx and retail building (K1) at 152 West 231st Street in Kingsbridge Heights, Bronx. The expected use is cash flowing.
The deal closed on October 2, 2024 and was recorded on October 10, 2024. The two properties have 9,419 square feet of built space and 16,736 square feet of additional air rights for a total buildable of 26,183 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $498 and the price per buildable square foot is $179 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 Herbert Freedman was Allan B. Rappleyea. The signatory for Chestnut Holdings of New York was Kovi Wiener. The contract date was June 12, 2024. Traded NY reported on the sale, identifying the brokers as Giancarlo Cugini and Karl Brumback of JLL.

Herbert Freedman bought the property in April 1985, financed through a seven-year, $75,000 purchase money mortgage that had a 12 percent interest rate. The loan was paid down in early 1987.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Chestnut Holdings of New York purchased three properties in three transactions for a total of $37.6 million and has no record it sold any properties over the past 24 months.
The seller Herbert Freedman had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail building in Kingsbridge Heights has 9,419 square feet of built space and 16,736 square feet of additional air rights for a total buildable of 26,183 square feet according to a PincusCo analysis of city data. The parcel has frontage of 84 feet and is 80 feet deep with a total lot size of 6,750 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $828,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $2,000 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 Kingsbridge Heights, The majority, or 57 percent of the 10.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 33 percent of the space. In sales, Kingsbridge Heights has the 42nd highest sale turnover among other neighborhoods in Bronx with $11.4 million in sales volume in the last two years. For development, Kingsbridge Heights has had very little major development activity relative to other neighborhoods.It had 375,628 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On the tax block of 3071 Bailey Avenue, PincusCo has identified the owners of nine of the 24 commercial properties representing 142,403 square feet of the 460,975 square feet. The largest owner is ACHS Management, followed by Walgreen Co. and then Gilman Management.
On the tax block, there were two new building construction projects totaling 34,764 square feet. The largest is a 19,840 square-foot mercantile (M) building submitted by Thomas Caputo with plans filed March 3, 2014 and permitted November 13, 2014. The second largest is a 14,924 square-foot mercantile (M) building submitted by Thomas Caputo with plans filed February 28, 2014 and permitted November 13, 2014.

The majority, or 56 percent of the 460,975 square feet of built space are retail buildings, with walkup buildings next occupying 36 percent of the space.

The buyer

The PincusCo database currently indicates that Chestnut Holdings of New York owned at least 147 commercial properties with 6,484 residential units in New York City with 6,401,244 square feet and a city-determined market value of $437.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 62 percent of the 6,401,244 square feet of built space are elevator properties, with walkup properties next occupying 38 percent of the space. The bulk, or 85 percent of the built space, is in Bronx, with Manhattan next at 9 percent of the space.

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