Hudson, Gilbane, MHANY sign $256.4M construction loan with NYC HDC for development in Hunts Point

Hudson Companies, Gilbane Development, and MHANY Management through the entity Peninsula Building 2a LLC as borrower signed a new construction loan with lender NYC Housing Development Corporation valued at $256.4 million for the development at 1223 Spofford Avenue in Hunts Point, Bronx.
The deal closed on June 28, 2023 and was recorded on July 13, 2023.
The signatory for Hudson Companies, Gilbane Development, and MHANY Management was Aaron Koffman.

The property

The parcel has frontage of 462 feet and is 352 feet deep with a total lot size of 100,981 square feet. The lot is irregular. The zoning is M1-2/R7-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3.44 times FAR for residential. The city-designated market value for the property in 2022 is $5.7 million.

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 not received any significant violations in the last year.

Development

On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 314,615 square feet. The largest is a new building project for a 224-unit, 185,338 square-foot R-2 building submitted by NYC Economic Development Corporation and filed by Jhaelen Hernandez-Eli with plans filed November 20, 2020 and it has not been permitted yet. The second largest is a new building project for a 135-unit, 129,277 square-foot R-2 building submitted by NYC Economic Development Corporation and filed by Jhaelen Hernandez-Eli with plans filed November 5, 2020 and it has not been permitted yet.

The neighborhood

In Hunts Point, The majority, or 59 percent of the 14.4 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 15 percent of the space. In sales, Hunts Point has had very little sales volume relative to other neighborhoods with $295.6 million in sales volume in the last two years. For development, Hunts Point has had very little major development activity relative to other neighborhoods.It had 298,677 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On the tax block, there were three new building construction projects totaling 500,212 square feet. The largest is a 183-unit, 185,597 square-foot residential (R-2) building submitted by NYC Economic Development Corporation and filed by Rory Melvin with plans filed July 3, 2018 and permitted August 20, 2019. The second largest is a 224-unit, 185,338 square-foot residential (R-2) building submitted by NYC Economic Development Corporation and filed by Jhaelen Hernandez-Eli with plans filed November 20, 2020 and it has not been permitted yet.

The majority, or 77 percent of the 241,225 square feet of built space are elevator buildings, with retail buildings next occupying 23 percent of the space.

The borrower

The PincusCo database currently indicates that MHANY Management owned at least 102 commercial properties with 1,886 residential units in New York City with 1,777,505 square feet and a city-determined market value of $181 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 43 percent of the 1,777,505 square feet of built space are walkup properties, with elevator properties next occupying 40 percent of the space. The bulk, or 63 percent of the built space, is in Brooklyn, with Bronx next at 27 percent of the space.
The PincusCo database currently indicates that Hudson Companies owned at least 58 commercial properties with 2,381 residential units in New York City with 2,539,242 square feet and a city-determined market value of $302.9 million. (Market value is typically about 50% of actual value.) The portfolio has $404.8 million in debt, with top three lenders as MLN Partners, Starwood Capital Group, and Ares Management respectively. Within the portfolio, the bulk, or 69 percent of the 2,539,242 square feet of built space are elevator properties, with walkup properties next occupying 26 percent of the space. The bulk, or 96 percent of the built space, is in Brooklyn, with Manhattan next at 4 percent of the space.
The PincusCo database currently indicates that Gilbane Development owned at least 21 commercial properties with 1,580 residential units in New York City with 1,776,839 square feet and a city-determined market value of $99.9 million. (Market value is typically about 50% of actual value.) The portfolio has $51.7 million in debt, borrowed from City of New York and Merchants Bank of Indiana. Within the portfolio, the bulk, or 91 percent of the 1,776,839 square feet of built space are elevator properties, with walkup properties next occupying 9 percent of the space. The bulk, or 53 percent of the built space, is in Brooklyn, with Bronx next at 47 percent of the space.

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