Doe Fund pays $26M to SKF Development for new 65-unit building in Bedford Park

Doe Fund through the entity 2736 Creston Avenue Housing Development Fund paid $26 million to SKF Development through the entity 2732 Creston Development LLC for the newly constructed 65-unit residential elevator building (D1) at 2738 Creston Avenue in Bedford Park, Bronx. The expected use is cash flowing.
The deal closed on August 30, 2024 and was recorded on September 17, 2024. The property has 37,744 square feet of built space and 6,371 square feet of additional air rights for a total buildable of 44,090 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $688 and the price per buildable square foot is $589 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.) SKF Development filed the new building project under job number 220673153.
The signatory for SKF Development was Ayush Kapahi. The signatory for Doe Fund was John McDonald. The contract date was March 22, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Doe Fund purchased one property in one transaction for a total of $6.5 million and has no record it sold any properties over the past 24 months.
The seller SKF Development purchased one property in one transaction for a total of $7 million and sold two properties in two transactions for a total of $49.7 million over the same time period.

The property

The residential elevator building with 65 residential units in Bedford Park has 37,744 square feet of built space and 6,371 square feet of additional air rights for a total buildable of 44,090 square feet according to a PincusCo analysis of city data. The parcel has frontage of 75 feet and is 100 feet deep with a total lot size of 7,324 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 $554,000. The most recent loan totaled $17.5 million and was provided by Metropolitan Commercial Bank on March 5, 2024.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation and $2,130 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on May 29, 2024. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of nine of the 15 commercial properties representing 403,950 square feet of the 417,459 square feet. The largest owner is Morgan Group, followed by Chestnut Holdings and then Shimon Greisman.
On the tax block, there were three new building construction projects totaling 26,565 square feet. The largest is a 22-unit, 9,406 square-foot residential (R-2) building submitted by Alfred Mitaj and filed by Alfred Mitaj with plans filed March 15, 2022 and permitted December 30, 2022. The second largest is a 22-unit, 8,723 square-foot residential (R-2) building submitted by Alfred Mitaj and filed by Alfred Mitaj with plans filed March 15, 2022 and permitted December 22, 2022.

The majority, or 55 percent of the 417,459 square feet of built space are walkup buildings, with elevator buildings next occupying 42 percent of the space.

The seller

The PincusCo database currently indicates that SKF Development owned at least nine commercial properties with 485 residential units in New York City with 263,199 square feet and a city-determined market value of $21.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 69 percent of the 263,199 square feet of built space are elevator properties, with D7 properties next occupying 27 percent of the space. They are all located in Bronx.

The buyer

The PincusCo database currently indicates that Doe Fund owned at least 11 commercial properties with 309 residential units in New York City with 315,080 square feet and a city-determined market value of $41.8 million. (Market value is typically about 50% of actual value.) The portfolio has $218 million in debt, with top three lenders as NYC Housing Development Corporation, UMB Bank, and Merchants Bank of Indiana respectively. Within the portfolio, the bulk, or 60 percent of the 315,080 square feet of built space are elevator properties, with N2 properties next occupying 16 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.

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