Gilbane Settlement Housing sign $74M loan with Systima Capital for rentals in Bronx

Gilbane Development and Settlement Housing Fund through the entity Alliance Housing Associates LLC as borrower signed an acquisition loan with lender Systima Capital Management through the entity Affordable Housing Credit Opportunities valued at $74 million for six residential elevator properties including the 204-unit residential elevator building (D1) at 280 East 161st Street in Concourse Village, Bronx, 79-unit residential elevator building (D1) at 1105 Jerome Avenue in Highbridge, Bronx, and 72-unit residential elevator building (D1) at 2363 Southern Boulevard in Belmont/Little Italy, Bronx.
The deal closed on December 8, 2022 and was recorded on January 9, 2023. The six properties have 551,320 square feet of built space and 165,732 square feet of additional air rights for a total buildable of 632,933 square feet according to PincusCo analysis of city data. The loan price per built square foot is $134 and the price per buildable square foot is $116 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 Gilbane Development and Settlement Housing Fund was Matthew Lawrence and Fazeela Siddiqui.

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 280 East 161st Street.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Dov Guttman, head officer. The business entity is Morrisania Apartments Llc. The six properties with a total of 551,320 square feet of built space generated revenue of $8.4 million per year or $15 per square foot.

The property

The 280 East 161st Street parcel has frontage of 461 feet and is 255 feet deep with a total lot size of 67,371 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 $13.5 million. The most recent loan totaled $27.6 million and was provided by Berkadia Commercial Mortgage on December 22, 2020.

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 one DOB violation, $2,500 in ECB penalties, 242 housing violations, $5,330 in OATH penalties, and seven housing litigations 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 block

On the tax block of 280 East 161st Street, PincusCo has identified the owners of eight of the 18 commercial properties representing 260,337 square feet of the 260,337 square feet. The largest owner is Spencer Equity Group, followed by New York City Housing Authority and then Dov Guttman.
There are no active new building construction projects on this tax block.

The majority, or 92 percent of the 260,337 square feet of built space are elevator buildings, with specialty buildings next occupying 8 percent of the space.

The borrower

The PincusCo database currently indicates that Settlement Housing Fund owned at least 24 commercial properties in New York City with 1,710,693 square feet and a city-determined market value of $89.5 million. (Market value is typically about 50% of actual value.) The portfolio has $351.9 million in debt, with top three lenders as NYC Housing Development Corporation, Community Preservation Corporation, and UMB Bank respectively. Within the portfolio, the bulk, or 41 percent of the 1,710,693 square feet of built space are elevator properties, with D4 properties next occupying 28 percent of the space. The bulk, or 41 percent of the built space, is in Queens, with Bronx next at 33 percent of the space.
The PincusCo database currently indicates that Gilbane Development owned at least 18 commercial properties in New York City with 834,381 square feet and a city-determined market value of $44.3 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 81 percent of the 834,381 square feet of built space are elevator properties, with walkup properties next occupying 19 percent of the space. They are all located in Bronx.

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