Gilbane Development pays $11.7M to Asland Capital, Pembroke for parcel in Unionport

Gilbane Development through the entity Castle Hill Acquisition I LLC paid $11.7 million to Asland Capital Partners and Pembroke through the entity PL MM LLC for the parking lot (G7) at 1931 Lafayette Avenue in Unionport, Bronx.

The tax map shows this as a vacant lot, however an agreement of the same date describes it as a 202-unit affordable property. The buyers obtained a $13 million at the same time from the Low Income Investment Fund.
The deal closed on May 9, 2024 and was recorded on May 20, 2024. The property has zero square feet of built space and 193,422 square feet of additional air rights for a total buildable of 193,422 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $60 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 Asland Capital Partners and Pembroke was David Goldban. The signatory for Gilbane Development was Matthew P. Lawrence. The contract date was November 10, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Gilbane Development purchased seven properties in five transactions for a total of $107.5 million and has no record it sold any properties over the past 24 months.
The seller Asland Capital Partners purchased 10 properties in five transactions for a total of $45.2 million and had not sold any properties over the same time period.

The property

The parcel has frontage of 224 feet and is 200 feet deep with a total lot size of 32,130 square feet. The lot is irregular. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $637,000. The most recent loan totaled $30.5 million and was provided by Capital One on November 30, 2020.

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 not received any significant violations 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 Unionport, The bulk, or 32 percent of the 6.5 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 20 percent of the space. In sales, Unionport has had very little sales volume relative to other neighborhoods with $210.5 million in sales volume in the last two years. For development, Unionport has had very little major development activity relative to other neighborhoods.It had 613,948 square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the three commercial properties representing 400,932 square feet of the 400,932 square feet. The largest owner is Yechiel Newhouse, followed by Starrett Development and then Pembroke.
On the tax block, there was one new building construction project filed totaling 101,351 square feet. It is a 154-unit, 101,351 square-foot residential (R-2) building submitted by Starrett Companies and filed by Joshua Siegel with plans filed May 5, 2020 and permitted April 29, 2022.

The majority, or 100 percent of the 400,932 square feet of built space are elevator buildings, with industrial buildings next occupying 0 percent of the space.

The seller

The PincusCo database currently indicates that Asland Capital Partners owned at least 11 commercial properties with 492 residential units in New York City with 318,385 square feet and a city-determined market value of $16.8 million. (Market value is typically about 50% of actual value.) The portfolio has $19.7 million in debt, borrowed from NYC Housing Development Corporation. Within the portfolio, the bulk, or 66 percent of the 318,385 square feet of built space are elevator properties, with walkup properties next occupying 34 percent of the space. The bulk, or 57 percent of the built space, is in Bronx, with Manhattan next at 43 percent of the space.
The PincusCo database currently indicates that Pembroke owned at least one commercial property with 154 residential units in New York City with 0.0 square feet and a city-determined market value of $254,000. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property.

The buyer

The PincusCo database currently indicates that Gilbane Development owned at least 23 commercial properties with 1,580 residential units in New York City with 1,776,839 square feet and a city-determined market value of $105.6 million. (Market value is typically about 50% of actual value.) The portfolio has $51.7 million in debt, borrowed from City of New York and Merchants Bank of Indiana. Within the portfolio, the bulk, or 91 percent of the 1,776,839 square feet of built space are elevator properties, with walkup properties next occupying 9 percent of the space. The bulk, or 53 percent of the built space, is in Brooklyn, with Bronx next at 47 percent of the space.

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