Dynamic Star signs $55M refi loan with Signature Bank for five properties in Fordham Manor

Gary Segal’s Dynamic Star through the entity DS Fordham Landing 2 LLC as borrower signed a refi loan with lender Signature Bank valued at $55 million for five properties including the office building (O2) at 2371 Exterior Street in Fordham Manor, Bronx, industrial building (F9) at 2401 Exterior Street in Fordham Manor, Bronx, and industrial building (F9) at 2391 Exterior Street in Fordham Manor, Bronx.
The deal closed on August 8, 2022 and was recorded on August 19, 2022. The prior lender was Columbia Pacific Advisors which held debt that had an original loan amount of $36 million with $24.95 million in outstanding debt and and three purchase money mortgages totaling $30.05 million in outstanding debt. The five properties have 10,090 square feet of built space and 690,001 square feet of additional air rights for a total buildable of 699,940 square feet according to PincusCo analysis of city data. The loan price per built square foot is $5,450 and the price per buildable square foot is $78 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 Dynamic Star was Gary Segal. The signatory for Signature Bank was Kenneth A. Stagnari.

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 Landing Road.

Prior sales and revenue

Out of the five properties, one with a total of 10,090 square feet of built space generated revenue of $215,375 per year.

The property

The N/A Landing Road parcel has frontage of 2,008 feet and is 63 feet deep with a total lot size of 227,238 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 $7 million.The most recent loan totaled $36 million and was provided by Columbia Pacific Advisors on July 1, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $5,000 in ECB penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Fordham Manor, the bulk, or 35 percent of the 18.2 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 28 percent of the space. In sales, Fordham Manor has had very little sales volume relative to other neighborhoods with $164.9 million in sales volume in the last two years. For development, Fordham Manor has near average amount of major developments among other neighborhoods and is the 11th highest in Bronx. It had 929,823 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On the tax block of Landing Road, PincusCo has identified the owners of seven of the eight commercial properties representing 110,590 square feet of the 110,590 square feet. The largest owners are Storage Post and Dynamic Star.
There are no active new building construction projects on this tax block.

The majority, or 94 percent of the 110,590 square feet of built space are industrial buildings, with office buildings next occupying 6 percent of the space.

The borrower

The PincusCo database currently indicates that Dynamic Star owned at least six commercial properties in New York City with 111,840 square feet and a city-determined market value of $29 million. (Market value is typically about 50% of actual value.) The portfolio has $206.5 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.

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