Dunn Development pays $2.7M to SilverRock for development in Mott Haven

Dunn Development, a major affordable housing developer, through the entity Bronx Affordable Holdings LLC paid $2.7 million to Sasha Mehdyzadeh’s SilverRock Development Company through the entity 860 Bronx LLC for the development parcel (V0) at 860 East 147th Street in Mott Haven, Bronx. This is the first purchase by Dunn Development that PincusCo has tracked since at least the start of 2020.
The deal closed on April 2, 2024 and was recorded on April 9, 2024. The property has zero square feet of built space and 36,345 square feet of additional air rights for a total buildable of 36,345 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $74 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 February 7, 2018, for $2.4 million. The signatory for SilverRock Development Company was Sasha Mehdyzadeh. The signatory for Dunn Development was Martin Dunn. The contract date was March 19, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Dunn Development had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller SilverRock Development Company had not purchased any other properties and had not sold any properties over the same time period.

The property

The parcel has frontage of 61 feet and is 100 feet deep with a total lot size of 7,269 square feet. The lot is irregular. The zoning is R7X which allows for up to 5 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $399,000.

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 $600 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project for a 100-unit, 36,183 square-foot R-1 building. The project was submitted by Srinivasan Kulandai with plans filed December 1, 2014 and permitted September 8, 2016.

The neighborhood

In Mott Haven, The bulk, or 45 percent of the 41.7 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 23 percent of the space. In sales, Mott Haven has 1.4 times the average sales volume among other neighborhoods with $400.2 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven has 2 times the average amount of major developments relative to other neighborhoods and is the 2nd highest in Bronx. It had 2.3 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 five of the 35 commercial properties representing 80,906 square feet of the 414,236 square feet. The largest owner is Steven Westreich, followed by Stacy Wolfe and then Savion.
On the tax block, there were two new building construction projects totaling 180,932 square feet. The largest is a 167-unit, 144,749 square-foot residential (R-2) building submitted by Radson Development and filed by Daniel Rad with plans filed August 16, 2016 and permitted April 25, 2017. The second largest is a 100-unit, 36,183 square-foot hotel/dormitory/shelter (R-1) building submitted by Srinivasan Kulandai with plans filed December 1, 2014 and permitted September 8, 2016.

The majority, or 78 percent of the 414,236 square feet of built space are industrial buildings, with walkup buildings next occupying 12 percent of the space.

The buyer

The PincusCo database currently indicates that Dunn Development owned at least 27 commercial properties with 1,098 residential units in New York City with 1,042,794 square feet and a city-determined market value of $75.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 71 percent of the 1,042,794 square feet of built space are elevator properties, with walkup properties next occupying 29 percent of the space. The bulk, or 61 percent of the built space, is in Bronx, with Brooklyn next at 29 percent of the space.

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