HKS Capital signs $14.8M construction loan for 64-unit project in Bedford Park
HKS Capital Partners through the entity 171 & 173 E. 205th Realty, LLC as borrower signed a new construction loan with lender Valley National Bank valued at $14.8 million for the 64-unit development at 171-173 East 205th Street in Bedford Park, Bronx.
On the lot, there is one active new building construction project for a 64-unit, 39,966 square-foot R-2 building. The project was developed by HKS Capital Partners with plans filed February 26, 2021 and permitted November 3, 2022.
The deal closed on March 2, 2023 and was recorded on March 7, 2023. The prior lender was Metropolitan Commercial Bank which held debt that had an original loan amount of $2.1 million.
The owner bought the property on March 18, 2021, for $3.8 million. The signatory for HKS Capital Partners was Robert J. Teitelbaum.
The property
The 171-173 East 205th Street parcel has frontage of 52 feet and is 107 feet deep with a total lot size of 5,000 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 $204,000.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.
The neighborhood
In Bedford Park, the bulk, or 48 percent of the 19.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Bedford Park has the 21st highest sale turnover among other neighborhoods in Bronx with $74.8 million in sales volume in the last two years. For development, Bedford Park has 1.2 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Bronx. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of six of the 16 commercial properties representing 165,319 square feet of the 333,308 square feet. The largest owner is SKF Development, followed by Richard Sica and then Pale Cotaj.
On the tax block, there were two new building construction projects totaling 88,697 square feet. The largest is a 88-unit, 48,731-square-foot R-2 building developed by Richard Hertz with plans filed February 23, 2021 and permitted November 3, 2022. The second largest is a 64-unit, 39,966-square-foot R-2 building developed by Amanda Hugenkiss with plans filed February 26, 2021 and permitted November 3, 2022.
The majority, or 52 percent of the 333,308 square feet of built space are elevator buildings, with walkup buildings next occupying 46 percent of the space.
The borrower
The PincusCo database currently indicates that HKS Capital Partners owned at least four commercial properties in New York City with 89,997 square feet and a city-determined market value of $7.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 89,997 square feet of built space are elevator properties, with development properties next occupying 0 percent of the space. They are all located in Bronx.
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