Doe Fund signs $9.4M refi loan with city for two shelters in Bronx

Doe Fund through the entity United Services Apartments LLC as borrower signed a refi loan with lender NYC Department of Housing Preservation and Development valued at $9.4 million for two affordable and supportive homeless shelters with 90 residential units including the 90-unit specialty building (N2) at 555 Nereid Avenue in Bronx and a shelter project at 4449 Bronx Boulevard in Bronx.
The deal closed on August 29, 2023 and was recorded on September 15, 2023. The prior lender was Webster Bank which held debt that had an original loan amount of $9.4 million.The two properties have 51,070 square feet of built space and 11,200 square feet of additional air rights according to a PincusCo analysis of city data. The loan price per built square foot is $184 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 Doe Fund was John McDonald. The signatory for NYC Department of Housing Preservation and Development was Emily Lehman.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 555 Nereid Avenue.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes John Mcdonald, individual owner and Michele Mercado, site manager.

The property

The specialty building with 90 residential units in BRONX has 51,070 square feet of built space and 11,200 square feet of additional air rights according to a PincusCo analysis of city data. The parcel has frontage of 95 feet and is 264 feet deep with a total lot size of 39,432 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $8.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received four housing violations and $130 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. 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

There are no active new building construction projects on this tax block.

The majority, or 50 percent of the 79,512 square feet of built space are specialty buildings, with industrial buildings next occupying 38 percent of the space.

The borrower

The PincusCo database currently indicates that Doe Fund owned at least eight commercial properties with 151 residential units in New York City with 222,465 square feet and a city-determined market value of $28 million. (Market value is typically about 50% of actual value.) The portfolio has $198.3 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 67 percent of the 222,465 square feet of built space are elevator properties, with office properties next occupying 15 percent of the space. The bulk, or 72 percent of the built space, is in Bronx, with Brooklyn next at 28 percent of the space.

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