Hershy Silberstein signs $30.4M construction loan in East Morrisania
Hershy Silberstein through the entity Gws East 170 LLC as borrower signed a new construction loan with lender NorthEast Community Bank through the entity Northeast Community Bank valued at $30.4 million for seven properties including 800, 802 and 808 East 170th Street in East Morrisania, Bronx.
On these lots, there is one active new building construction project for a 28-unit, 16,226 square-foot R-2 building. The project was submitted by Charles Schwartz with plans filed March 22, 2022 and permitted August 23, 2023.
The loan closed on May 15, 2024 and was recorded on May 30, 2024. The seven properties have 10,594 square feet of built space and 70,429 square feet of additional air rights for a total buildable of 81,042 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $2,867 and the price per buildable square foot is $374 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 Hershy Silberstein was Hershy Silberstein.
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 $11,000 in ECB penalties, one housing violation, and $12,155 in OATH penalties in the last year.
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 the 16th highest sale turnover among other neighborhoods in Bronx with $70.1 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 846,475 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.
The block
On the tax block of 806 East 170th Street, PincusCo has identified the owners of 12 of the 24 commercial properties representing 187,440 square feet of the 218,186 square feet. The largest owner is Xhafer Gecaj, followed by Workforce Housing Group and then Lemle & Wolff.
On the tax block, there were three new building construction projects totaling 37,923 square feet. The largest is a 29-unit, 17,243 square-foot residential (R-2) building submitted by Charles Schwartz with plans filed March 23, 2022 and permitted May 11, 2023. The second largest is a 28-unit, 16,226 square-foot residential (R-2) building submitted by Charles Schwartz with plans filed March 22, 2022 and permitted August 23, 2023.
The majority, or 54 percent of the 218,186 square feet of built space are walkup buildings, with elevator buildings next occupying 21 percent of the space.
The borrower
The PincusCo database currently indicates that Hershy Silberstein owned at least 13 commercial properties with 76 residential units in New York City with 52,009 square feet and a city-determined market value of $8.3 million. (Market value is typically about 50% of actual value.) The portfolio has $87.5 million in debt, with top three lenders as Starwood Capital Group, IceCap Group, and S3 Capital respectively. Within the portfolio, the bulk, or 76 percent of the 52,009 square feet of built space are industrial properties, with mixed-use properties next occupying 14 percent of the space. The bulk, or 82 percent of the built space, is in Bronx, with Brooklyn next at 18 percent of the space.
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