HKS signs $22.3M construction loan with Valley National Bank for development in Fordham Manor

HKS Capital Partners through the entity 2499 Sedgwick Development LLC as borrower signed a loan with lender Valley National Bank valued at $18.5 million for the midblock development building at 2499 Sedgwick Avenue in Fordham Manor, Bronx.

Kim Tasher of SKF Development filed plans on this tax lot using the address 2501 Sedgwick Avenue in 2019 for a 121-unit project with 105,302 square feet, Yimby reported at the time.
The loan closed on March 4, 2022 and was recorded on March 11, 2022.The property has zero square feet of built space and 77,193 square feet of additional air rights for a total buildable of 77,193 square feet according to PincusCo analysis of city data. The loan price per buildable square foot is $239 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 owner bought the property on May 22, 2019, for $2.8 million.

The property

The 2499 Sedgwick Avenue parcel has frontage of 226 feet and is 124 feet deep with a total lot size of 31,767 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $635,000.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $5,895 in ECB penalties and $6,095 in OATH penalties in the last year.

The neighborhood

In Fordham Manor, the bulk, or 32 percent of the 21.6 million square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 30 percent of the space. In sales, Fordham Manor has had very little sales volume relative to other neighborhoods with $157.8 million in sales volume in the last two years. For development, Fordham Manor has near average amount of major developments among other neighborhoods and is the 9th highest in Bronx. It had 849,436 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 22 commercial properties representing 249,452 square feet of the 392,427 square feet. The largest owner is Related Companies, followed by Ruben Diaz and then Sharp Management. There are 10 active new building construction projects totaling 246,395 square feet. The largest is a 121-unit, 93,043-square-foot R-2 building developed by Kim Tasher with plans filed December 11, 2019 and permitted August 6, 2021. The second largest is a 36-unit, 30,871-square-foot R-2 building developed by Ari Thaler with plans filed May 24, 2019 and permitted June 18, 2020.

The majority, or 63 percent of the 722,174 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 25 percent of the space.

Surrounding

Within a 400-foot radius of 2499 Sedgwick Avenue, Pincusco identified two commercial real estate items of interests occurred over the past 24 months.
There were one new building permit application and one new building permit. The most recent of these two items was a filing on February 21, 2022 for a 27,022-square-foot R-2 building with 40 residential units at 2519 Sedgwick Avenue.

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