Hercules Argyriou of Mega Contracting pays $10.6M in East Morrisania

Hercules Argyriou of Mega Contracting Group through the entity Astwood Realty, LLC paid $10.6 million to Montefiore Medical Center through the entity Montefiore Medical Center for the industrial building (F2) at 1776 Hoe Avenue in East Morrisania, Bronx. The expected use is ground up development based on the buyer’s development activity.
The deal closed on March 7, 2025 and was recorded on March 13, 2025. The property has 58,962 square feet of built space and 46,193 square feet of additional air rights for a total buildable of 104,986 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $179 and the price per buildable square foot (based on the 2.0 FAR) is $100 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.)

Marketing Material from Cushman & Wakefield says the property, “Located in a C8-3 zoning district… boasts an additional 46,024 square feet of air rights at a 2.0 FAR. Community Facility FAR is 6.5 and would allow for a new building of up 341,204 square feet.”
The signatory for Montefiore Medical Center was Edward Pfleging. The signatory for Mega Contracting Group was Hercules Argyriou . The contract date was December 6, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Mega Contracting Group purchased four properties in two transactions for a total of $11 million and sold one property in one transaction for a total of $6.5 million over the past 24 months.
The seller Montefiore Medical Center had not purchased any other properties and had not sold any properties over the same time period.

The property

The industrial building in East Morrisania has 58,962 square feet of built space and 46,193 square feet of additional air rights for a total buildable of 104,986 square feet according to a PincusCo analysis of city data. The parcel has frontage of 336 feet and is 205 feet deep with a total lot size of 52,493 square feet. The lot is irregular. The zoning is C8-3 which allows for up to 2 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $3.2 million.

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 received $1,950 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 East Morrisania, The bulk, or 43 percent of the 12 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, East Morrisania has had very little sales volume relative to other neighborhoods with $93.3 million in sales volume in the last two years. For development, East Morrisania has had very little major development activity relative to other neighborhoods.It had 595,814 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 this tax block, PincusCo has identified the owners of two of the 12 commercial properties representing 115,048 square feet of the 370,168 square feet. The two identified owners are MBD Community Housing Corp and Cubesmart.
There are no active new building construction projects on this tax block.

The majority, or 44 percent of the 370,168 square feet of built space are elevator buildings, with industrial buildings next occupying 40 percent of the space.

The seller

The PincusCo database currently indicates that Montefiore Medical Center owned at least two commercial properties in New York City with 747,140 square feet and a city-determined market value of $89.8 million. (Market value is typically about 50% of actual value.) The portfolio has $956.5 million in debt, borrowed from Bank of New York Mellon as trustee and Bank of New York Mellon. Within the portfolio, the bulk, or 58 percent of the 747,140 square feet of built space are specialty properties, with industrial properties next occupying 42 percent of the space. They are all located in Bronx.

The buyer

The PincusCo database currently indicates that Mega Contracting Group owned at least five commercial properties in New York City with 19,455 square feet and a city-determined market value of $3.3 million. (Market value is typically about 50% of actual value.) The portfolio has $18.2 million in debt, borrowed from Corporation for Supportive Housing. Within the portfolio, the bulk, or 71 percent of the 19,455 square feet of built space are mixed-use properties, with retail properties next occupying 29 percent of the space. They are all located in Bronx.

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