Denali Management pays $6.2M for 39-unit walkup in Bedford Park

Denali Management through the entity 367 E 201 LLC paid $6.2 million to Bryan W. Kishner and Ryan Miller through the entity Famkhag LLC for 39-unit residential walkup building at 367 East 201st Street in Bedford Park, Bronx.
The deal closed on February 23, 2022 and was recorded on March 9, 2022.The property has 32,000 square feet of built space and 11,972 square feet of additional air rights for a total buildable of 43,946 square feet according to PincusCo analysis of city data. The sale price per built square foot is $193 and the price per buildable square foot is $141 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 22, 2014, for $3.9 million. The signatory for Bryan W. Kishner and Ryan Miller was Bryan W. Kishner and Ryan Miller. 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 40 properties in 32 transactions for a total of $201.4 million and has no record it sold any properties over the past 24 months.
The seller Bryan W. Kishner had not purchased any other properties and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development included Bryan Kishner, head officer and Melanio Egocheaga, site manager. The business entity was Decatur 201 Llc. The 32,000-square-foot property generated revenue of $566,543 or $18 per square foot, according to the most recent income and expense figures.

The property

The 367 East 201st Street parcel has frontage of 77 feet and is 121 feet deep with a total lot size of 7,300 square feet. The lot is irregular. 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 $1.4 million.The property has a city-determined energy rating of 24 out of 100.

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 $300 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 $5 million on this tax lot.

The neighborhood

In Bedford Park, the bulk, or 47 percent of the 22.8 million square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 24 percent of the space. In sales, Bedford Park has had very little sales volume relative to other neighborhoods with $95.5 million in sales volume in the last two years. For development, Bedford Park has 1.4 times the average amount of major developments relative to other neighborhoods and is the 7th highest in Bronx. It had 1.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the nine commercial properties representing 76,750 square feet of the 385,619 square feet. The identified owner is Park Avenue South Management. There are three active new building construction projects totaling 73,056 square feet. The largest is a 52-unit, 38,051-square-foot R-2 building developed by Astrit Ulaj with plans filed January 26, 2021 and it has not been permitted yet. The second largest is a 33-unit, 22,243-square-foot R-2 building developed by Gac Haxhari with plans filed June 25, 2019 and permitted October 5, 2020.

The majority, or 67 percent of the 549,904 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 28 percent of the space.

The buyer

The PincusCo database currently indicates that Denali Management owned at least 39 commercial properties with 923,888 square feet and a city-determined market value of $76.9 million. (Market value is typically about 50% of actual value.) The portfolio has $87.5 million in debt, with top three lenders as JPMorgan Chase, Investors Bank, and New York Community Bank respectively. Within the portfolio, the bulk, or 74 percent of the 923,888 square feet of built space are residential walkup properties, with residential elevator properties next occupying 26 percent of the space. The bulk, or 67 percent of the built space, is in the Bronx, with Brooklyn next at 20 percent of the space.

Surrounding

Within a 400-foot radius of 367 East 201st Street, Pincusco identified seven commercial real estate items of interests occurred over the past 24 months.
Of those seven items, two were in new building development. There were one new building permit application and one new building permit. The most recent of these two items was a permit on December 3, 2021 for a 12,762-square-foot R-2 building with 18 residential units at 2997 Marion Avenue.
Of those seven items, two were sales above $5 million totaling $15.9 million. The most recent of the two was Park Avenue South Management which bought the 50,000-square-foot, 48-unit rental (C1) on 354 East Mosholu Parkway for $6.1 million from John T. Satriale on February 7, 2022.
Of those seven items, three were loans above $5 million totaling $58.9 million. The most recent of the three was Chestnut Holdings which borrowed $7.3 million from JPMorgan Chase secured by the 67,930-square-foot, 64-unit rental (D7) on 2976 Marion Avenue on November 15, 2021.

Direct link to Acris document. link