Dev site with 84-unit plans in Belmont sells for $5M

The entity Rvmim LLC paid $5 million to Vijay Gogia through the entity Sky Blu Holdings LLC for the development site at 711 East 189th Street in Belmont/Little Italy, Bronx.
The deal closed on May 25, 2022 and was recorded on June 7, 2022. The property has 800 square feet of built space and 46,090 square feet of additional air rights for a total buildable of 46,872 square feet according to PincusCo analysis of city data. The sale price per built square foot is $6,250 and the price per buildable square foot is $106 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 May 13, 2014, for $2 million. The signatory for Vijay Gogia was Vijay Gogia.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Vijay Gogia purchased one properties in one transactions for a total of $4.2 million and had not sold any properties over the same time period. The 800-square-foot property generated revenue of $108,823 or $136 per square foot, according to the most recent income and expense figures.

The property

The 711 East 189th Street parcel has frontage of 90 feet and is 133 feet deep with a total lot size of 11,160 square feet. The lot is irregular. The zoning is C4-5D which allows for up to 4.2 times floor area ratio (FAR) for commercial and up to 4.2 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $534,000.

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 $2,500 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 84-unit, 92,562-square-foot R-2 building. The project was developed by Vijay Gogia with plans filed December 10, 2021 and it has not been permitted yet.

The neighborhood

In Belmont/Little Italy, the bulk, or 35 percent of the 17.6 million square feet of commercial built space are residential walkup buildings, with residential elevator buildings next occupying 22 percent of the space. In sales, Belmont/Little Italy has had very little sales volume relative to other neighborhoods with $73 million in sales volume in the last two years. For development, Belmont/Little Italy has had very little major development activity relative to other neighborhoods.It had 643,422 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 this tax block, PincusCo has identified the owners of five of the 22 commercial properties representing 76,886 square feet of the 233,975 square feet. The largest owner is Brooklyn Standard Properties, followed by Shahin Daneshyar and then Sadhu Lall. There are two active new building construction projects totaling 191,764 square feet. The largest is a 145-unit, 99,202-square-foot R-2 building developed by Shahin Daneshvar with plans filed December 19, 2019 and it has not been permitted yet.The second largest is a 84-unit, 92,562-square-foot R-2 building developed by Vijay Gogia with plans filed December 10, 2021 and it has not been permitted yet.

The majority, or 53 percent of the 294,301 square feet of built space are residential walkup buildings, with 1-4 family buildings next occupying 20 percent of the space.

The seller

The PincusCo database currently indicates that Vijay Gogia owned at least one commercial property with 17,932 square feet and a city-determined market value of $1.1 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single mixed-use property. It is located in Bronx.

Surrounding

Within a 400-foot radius of 711 East 189th Street, Pincusco identified four commercial real estate items of interests occurred over the past 24 months.
One of those four items was a sale which Phoenix Realty Group bought the 249,600-square-foot, one-unit industrial (W1) on 2459 Southern Boulevard and four other properties for $86 million from Abrams Capital and Belveron Partners on January 31, 2022.
Of those four items, three were loans above $5 million totaling $34.7 million. The most recent of the three was Stagg Group which borrowed $12 million from Popular Bank secured by the 0-square-foot industrial (G7) on 2441 Crotona Avenue on May 25, 2022.

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