Dynamic Star signs $40M refi with Columbia Pacific for development in University Heights
Dynamic Star through the entity Ds Fordham Landing 1 LLC as borrower signed a refi loan with lender Columbia Pacific Advisors through the entity Cpif Lending, LLC valued at $40 million for the midblock development site at West Fordham Road in University Heights, Bronx.
The deal closed on March 1, 2022 and was recorded on March 15, 2022. The prior lender was GS Fordham Lender LLC which held debt that had an original loan amount of $24.5 million. The property has zero square feet of built space and 557,968 square feet of additional air rights for a total buildable of 557,968 square feet according to PincusCo analysis of city data. The loan price per buildable square foot is $71 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 owner bought the property on April 2, 2019, for $31.6 million. The signatory for Dynamic Star was Gary Segal.
The property
The West Fordham Road parcel has frontage of 742 feet and is 267 feet deep with a total lot size of 162,200 square feet. The lot is irregular. The zoning is R7-2 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $10.1 million.The most recent loan totaled $24.5 million and was provided by GS Fordham Lender LLC on May 28, 2021.
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 not received any significant violations in the last year.
Development
On these lots, there is one active new building construction project for a 602-unit, 100,000-square-foot R-2 building. The project was developed by Brad Zackson with plans filed November 8, 2021 and it has not been permitted yet.
The neighborhood
In University Heights, the bulk, or 34 percent of the 11.8 million square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 30 percent of the space. In sales, University Heights has the 28th highest sale turnover among other neighborhoods in Bronx with $29 million in sales volume in the last two years. For development, University Heights has had very little major development activity relative to other neighborhoods.It had 655,890 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 five commercial properties representing zero square feet of the zero square feet. The two identified owners are Dynamic Star and Consolidated Edison. There is one active new building construction project totaling 100,000 square feet. It is a 602-unit, 100,000-square-foot R-2 building developed by Brad Zackson with plans filed November 8, 2021 and it has not been permitted yet.
The borrower
The PincusCo database currently indicates that Dynamic Star owned at least six commercial properties with 111,840 square feet and a city-determined market value of $28.8 million. (Market value is typically about 50% of actual value.) The portfolio has $166.5 million in debt, with top three lenders as Columbia Pacific Advisors, Churchill Real Estate Holdings, and GS Fordham Lender LLC respectively. Within the portfolio, the bulk, or 100 percent of the 111,840 square feet of built space are industrial properties, with development properties next occupying 0 percent of the space. The bulk, or 97 percent of the built space, is in Queens, with Bronx next at 3 percent of the space.
Surrounding
PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of N/A West Fordham Road that occurred over the past 24 months.
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