CubeSmart pays $7.5M to Peter Ciregna for industrial in Van Nest

CubeSmart through the entity Cubesmart, L.P. paid $7.5 million to Peter Ciregna through the entity Cruger Avenue Realty Corp. for the corner industrial building at 1980 White Plains Road in Van Nest, Bronx.
The deal closed on February 2, 2022 and was recorded on March 15, 2022.The property has 50,015 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $149 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 Peter Ciregna was Peter Ciregna. The signatory for CubeSmart was Jeffrey P. Poster.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer CubeSmart purchased 13 properties in 11 transactions for a total of $553.7 million and has no record it sold any properties over the past 24 months.
The seller Peter Ciregna had not purchased any other properties and sold one properties in one transactions for a total of $4.8 million over the same time period. The 50,015-square-foot property generated revenue of $780,982 or $16 per square foot, according to the most recent income and expense figures.

The property

The 1980 White Plains Road parcel has frontage of 255 feet and is 151 feet deep with a total lot size of 32,249 square feet. The lot is irregular. The zoning is C8-1 which allows for up to 1 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $4.7 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received three DOB violations 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 Van Nest, the bulk, or 48 percent of the 7 million square feet of built space are 1-4 family buildings, with industrial buildings next occupying 15 percent of the space. In sales, Van Nest has the 46th highest sale turnover among other neighborhoods in Bronx with $3.2 million in sales volume in the last two years. For development, Van Nest has had very little major development activity relative to other neighborhoods.It had 5,791 square feet of commercial and multi-family construction under development in the last two years, which represents 0.08 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 12 commercial properties representing 136,775 square feet of the 175,275 square feet. The largest owner is CubeSmart, followed by Gjergj Balaj and then 2028 White Plains Owner LLC. There are no active new building construction projects on this tax block.

the majority, or 53 percent of the 204,495 square feet of built space are industrial buildings, with residential elevator buildings next occupying 24 percent of the space.

The buyer

The PincusCo database currently indicates that CubeSmart owned at least 43 commercial properties with 3,508,357 square feet and a city-determined market value of $404.1 million. (Market value is typically about 50% of actual value.) The portfolio has $89.2 million in debt, borrowed from 41-06 Delong Street,LLC and CubeSmart. Within the portfolio, the bulk, or 100 percent of the 3,508,357 square feet of built space are industrial properties, with office properties next occupying 0 percent of the space. The bulk, or 34 percent of the built space, is in Bronx, with Brooklyn next at 34 percent of the space.

Surrounding

Within a 400-foot radius of 1980 White Plains Road, Pincusco identified one commercial real estate item of interests occurred over the past 24 months.
It was a loan which Eric Miller borrowed $33.9 million from Sterling National Bank secured by the 44,993-square-foot, 83-unit co-op (D4) on 1954 Unionport Road and three other properties on March 12, 2021.

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