Energy company Sprague pays $73.5M to Buckeye Partners for six properties in Bronx

Energy company Sprague through the entity 149th LLC paid $73.5 million to Buckeye Partners through the entity Buckeye Terminals, LLC for six properties including the industrial building (F8) at 1040 East 149th Street in Mott Haven, Bronx.
The deal closed on March 31, 2023 and was recorded on April 4, 2023. The six properties have 16,561 square feet of built space and 595,431 square feet of additional air rights for a total buildable of 605,766 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $4,438 and the price per buildable square foot is $121 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 Buckeye Partners was Chris Pine. The signatory for Sprague was Paul A. Scoff.

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 1040 East 149th Street.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Sprague had purchased any other properties and sold five properties in one transaction for a total of $36 million over the past 24 months.
The seller Buckeye Partners had not purchased any other properties and sold eight properties in two transactions for a total of $123 million over the same time period.

The property

The industrial building in Mott Haven has 16,561 square feet of built space and 595,431 square feet of additional air rights for a total buildable of 605,766 square feet according to a PincusCo analysis of city data. The parcel has frontage of 324 feet and is 662 feet deep with a total lot size of 261,000 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $11.5 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 $600 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

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 2.2 times the average sales volume among other neighborhoods with $767.9 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven has 3.2 times the average amount of major developments relative to other neighborhoods and is the highest in Bronx. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On the tax block of 1040 East 149th Street, PincusCo has identified the owners of 12 of the 27 commercial properties representing 305,961 square feet of the 1,053,311 square feet. The largest owner is Sobro, followed by Ifm Investors and then Hackman Capital Partners.
On the tax block, there were two new building construction projects totaling 879,203 square feet. The largest is a 879,203 square-foot storage (S-1) building submitted by Turnbridge Equities and filed by Kevin Tiseo with plans filed May 3, 2021 and permitted September 23, 2021. The second largest is a institutional (I) building submitted by Joshua Sager with plans filed November 2, 2022 and it has not been permitted yet.

The majority, or 73 percent of the 1.1 million square feet of built space are industrial buildings, with office buildings next occupying 26 percent of the space.

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