Denali Management pays $4.1M to Edwin Shirazian for residential walkup in Fordham Heights

Denali Management through the entity 2485 Elm LLC paid $4.1 million to Edwin Shirazian through the entity 2485 Elm Realty for midblock 26-unit residential walkup building at 2485 Elm Place in Fordham Heights, Bronx.
The deal closed on March 9, 2022 and was recorded on March 22, 2022. The property has 19,680 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $208 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 January 15, 2016, for $3.2 million. The signatory for Edwin Shirazian was Edwin Shirazian. The signatory for Denali Management was Ben Rieder.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Denali Management purchased 41 properties in 33 transactions for a total of $207.6 million and has no record it sold any properties over the past 24 months.
The seller Edwin Shirazian had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development was Edwin Shirazian, head officer. The business entity is Mazal Property Group Llc. The 19,680-square-foot property generated revenue of $514,818 or $26 per square foot, according to the most recent income and expense figures.

The property

The 2485 Elm Place parcel has frontage of 41 feet and is 113 feet deep with a total lot size of 4,455 square feet. The zoning is C4-4 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 3.44 times FAR for residential. The city-designated market value for the property in 2022 is $1.6 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 34 housing violations, $950 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 Fordham Heights, the bulk, or 43 percent of the 17.5 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 33 percent of the space. In sales, Fordham Heights has had very little sales volume relative to other neighborhoods with $101 million in sales volume in the last two years. For development, Fordham Heights has 2.8 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Bronx. It had 2.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 24 commercial properties representing 143,515 square feet of the 283,533 square feet. The largest owner is Gindi Capital, followed by Ellen Joseph and then Edwin Shirazian. There are two active new building construction projects totaling 51,102 square feet. The largest is a 57-unit, 42,831-square-foot R-2 building developed by Kim Tasher with plans filed March 28, 2019 and it has not been permitted yet. The second largest is a 8,271-square-foot office (B) building developed by Marcial Jimenez with plans filed December 23, 2014 and permitted July 27, 2016.

The majority, or 43 percent of the 344,464 square feet of built space are residential walkup buildings, with retail buildings next occupying 31 percent of the space.

The seller

The PincusCo database currently indicates that Edwin Shirazian owned at least two commercial properties with 35,020 square feet and a city-determined market value of $2.9 million. (Market value is typically about 50% of actual value.) The portfolio has $9 million in debt, borrowed from First National Bank of Long Island. Within the portfolio, all identified are residential walkup properties. They are all located in Manhattan.

Surrounding

Within a 400-foot radius of 2485 Elm Place, Pincusco identified 10 commercial real estate items of interests occurred over the past 24 months.
Of those 10 items, one was for major renovation including a certificate of occupancy change. It was a permit application filed on February 17, 2022 for the $1,000,000 renovation of 28,733-square-foot B building with zero residential units at 2511 Marion Avenue.
Of those 10 items, nine were loans above $5 million totaling $95.2 million. The most recent of the nine was Jenel Management which borrowed $8.4 million from New York Community Bank secured by the 14,775-square-foot, four-unit mixed-use building (K2) on 256 East Fordham Road on January 27, 2022.

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