Jacob Schwimmer signs $90.5M construction loan with Valley National Bank for 365-unit project in Mott Haven

Jacob Schwimmer through the entity 40 Bruckner Realty LLC as borrower signed a new construction loan with lender Valley National Bank valued at $90.5 million for the industrial building (F9) at 40 Bruckner Boulevard in Mott Haven, Bronx.
The deal closed on August 19, 2022 and was recorded on August 26, 2022. The property has 54,756 square feet of built space and 398,252 square feet of additional air rights for a total buildable of 453,209 square feet according to PincusCo analysis of city data. The loan price per buildable square foot is $199 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 Jacob Schwimmer was Jacob Schwimmer. The development site is controlled by a ground lease.

The property

The 40 Bruckner Boulevard parcel has frontage of 200 feet and is 287 feet deep with a total lot size of 75,284 square feet. The lot is irregular. The zoning is M1-5/R8A which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.7 million.

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 received 10 DOB violations, $41,652 in ECB penalties, and $43,252 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 365-unit, 353,845-square-foot R-2 building. The project was developed by Jacob Schwimmer with plans filed June 2, 2021 and it has not been permitted yet.

The neighborhood

In Mott Haven, the bulk, or 42 percent of the 40.1 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 25 percent of the space. In sales, Mott Haven has 2.9 times the average sales volume among other neighborhoods with $980.2 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven is the 8th most active neighborhood among other neighborhoods. It had 5.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the eight commercial properties representing 126,668 square feet of the 650,769 square feet. The two identified owners are JCAL Development Group and Jacob Schwimmer.
There is one active new building construction project totaling 353,845 square feet. It is a 365-unit, 353,845-square-foot R-2 building developed by Jacob Schwimmer with plans filed June 2, 2021 and permitted May 16, 2022.

The majority, or 72 percent of the 195,222 square feet of built space are elevator buildings, with industrial buildings next occupying 28 percent of the space.

The borrower

The PincusCo database currently indicates that Jacob Schwimmer owned at least 14 commercial properties in New York City with 775,399 square feet and a city-determined market value of $89.3 million. (Market value is typically about 50% of actual value.) The portfolio has $232.6 million in debt, with top three lenders as Spruce Capital, Bank Leumi, and Cantor Commercial Real Estate Lending respectively. Within the portfolio, the bulk, or 46 percent of the 775,399 square feet of built space are elevator properties, with office properties next occupying 40 percent of the space. The bulk, or 62 percent of the built space, is in Brooklyn, with Bronx next at 38 percent of the space.

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