Horizon Investors Group buys $13.4M note secured by Prestige Properties retail near Co-op City

Horizon Investors Group LLC through the entity Horizon Investors Group LLC bought a note with principal of $13.4 million from Capital One secured by Prestige Properties and Development’s retail building (K1) at 290 Baychester Avenue in Co-op City, Bronx, retail building (K1) at 2090 Bartow Avenue in Co-op City, Bronx, and retail building (K1) at 308 Baychester Avenue in Co-op City, Bronx.
The deal closed on April 7, 2022 and was recorded on August 17, 2022. The prior lender was Capital One. The three properties have 57,256 square feet of built space and 383,834 square feet of additional air rights for a total buildable of 441,040 square feet according to PincusCo analysis of city data.
The same entity bought a $17.1 million note from Bank of America secured by another collection of Prestige Properties retail, in February 2022.

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 2090 Bartow Avenue.

Prior sales and revenue

The three properties with a total of 57,256 square feet of built space generated revenue of $4 million per year or $70 per square foot.

The property

The 2090 Bartow Avenue parcel has frontage of 321 feet and is 539 feet deep with a total lot size of 92,850 square feet. The lot is irregular. The zoning is C4-3 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $9.4 million.

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 $3,125 in ECB penalties and $3,125 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the three buildings received a initial certificate of occupancy in the last ten years.

The neighborhood

In Co-op City, the bulk, or 35 percent of the 6.7 million square feet of commercial built space are mixed-use buildings, with industrial buildings next occupying 25 percent of the space. In sales, Co-op City has not had any sales in the last two years. For development, Co-op City has had very little major development activity relative to other neighborhoods.It had 54,666 square feet of commercial and multi-family construction under development in the last two years, which represents 0.81 percent of the neighborhood’s built space.

The block

On the tax block of 2090 Bartow Avenue, PincusCo has identified the owners of 12 of the 58 commercial properties representing 3,583,655 square feet of the 6,728,200 square feet. The largest owner is NYC Department of Education, followed by Co-op City and then Prestige Properties and Development.

The majority, or 31 percent of the 6.4 million square feet of built space are mixed-use buildings, with specialty buildings next occupying 27 percent of the space.

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