Chestnut Holdings pays $8M for residential walkup in Concourse Village

Chestnut Holdings through the entity 1125-1127 S LLC paid $8 million to Morris Weinberg and David Kleiner through the entity 1125 Sheridan LLC for 49-unit residential walkup building at 1125 Sheridan Avenue in Concourse Village, Bronx.
The deal closed on May 11, 2022 and was recorded on May 23, 2022. The property has 45,300 square feet of built space and 15,860 square feet of additional air rights for a total buildable of 61,205 square feet according to PincusCo analysis of city data. The sale price per built square foot is $176 and the price per buildable square foot is $130 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 seller bought the property on February 3, 2015, for $5.2 million. The signatory for Morris Weinberg and David Kleiner was Jeffrey Zwick. The signatory for Chestnut Holdings was Ben Rieder.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Chestnut Holdings purchased 48 properties in 43 transactions for a total of $271.3 million and has no record it sold any properties over the past 24 months.
The seller Morris Weinberg purchased one properties in one transactions for a total of $14.8 million and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Moshe Lieb, head officer. The 45,300-square-foot property generated revenue of $699,404 or $15 per square foot, according to the most recent income and expense figures.

The property

The 1125 Sheridan Avenue parcel has frontage of 150 feet and is 67 feet deep with a total lot size of 10,167 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.6 million.

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 received two DOB violations, $2,400 in ECB penalties, 121 housing violations, $3,150 in OATH penalties, and one housing litigation in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Concourse Village, the bulk, or 41 percent of the 22.1 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 22 percent of the space. In sales, Concourse Village has had very little sales volume relative to other neighborhoods with $59.1 million in sales volume in the last two years. For development, Concourse Village has had very little major development activity relative to other neighborhoods.It had 416,198 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. There was one pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 13 of the 38 commercial properties representing 740,311 square feet of the 1,760,955 square feet. The largest owner is City of New York, followed by Yechiel Weinberger and then John Milevoi. There are two active new building construction projects totaling 282,663 square feet. The largest is a seven-unit, 24,506-square-foot A-3 building developed by Amara Kenneh with plans filed July 14, 2015 and it has not been permitted yet. The second largest is a two-unit, 258,157-square-foot A-3 building developed by Amara Kenneh with plans filed August 18, 2021 and it has not been permitted yet.

The majority, or 47 percent of the 1.8 million square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 44 percent of the space.

The seller

The PincusCo database currently indicates that David Kleiner owned at least 11 commercial properties with 550,636 square feet and a city-determined market value of $29.7 million. (Market value is typically about 50% of actual value.) The portfolio has $52 million in debt, with top three lenders as JPMorgan Chase, Signature Bank, and Flushing Bank respectively. Within the portfolio, the bulk, or 51 percent of the 550,636 square feet of built space are residential walkup properties, with residential elevator properties next occupying 49 percent of the space. They are all located in Bronx.
The PincusCo database currently indicates that Morris Weinberg owned at least nine commercial properties with 591,117 square feet and a city-determined market value of $29.7 million. (Market value is typically about 50% of actual value.) The portfolio has $73.1 million in debt, with top three lenders as Capital One, JPMorgan Chase, and PIMCO respectively. Within the portfolio, the bulk, or 76 percent of the 591,117 square feet of built space are residential elevator properties, with residential walkup properties next occupying 24 percent of the space. The bulk, or 80 percent of the built space, is in Bronx, with Brooklyn next at 20 percent of the space.

The buyer

The PincusCo database currently indicates that Chestnut Holdings owned at least 39 commercial properties with 1,637,994 square feet and a city-determined market value of $163 million. (Market value is typically about 50% of actual value.) The portfolio has $211.2 million in debt, with top three lenders as JPMorgan Chase, New York Community Bank, and Signature Bank respectively. Within the portfolio, the bulk, or 50 percent of the 1,637,994 square feet of built space are residential walkup properties, with residential elevator properties next occupying 43 percent of the space. The bulk, or 70 percent of the built space, is in Bronx, with Manhattan next at 18 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 1125 Sheridan Avenue that occurred over the past 24 months.

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