Jem Realty signs $8M loan with Signature Bank for mixed-use in Washington Heights

Jem Realty Management through the entity 3780 Realty Associates LLC as borrower signed a loan with lender Signature Bank valued at $8 million for the mixed-use building at 3780 Broadway in Washington Heights, Manhattan.
The deal closed on May 10, 2022 and was recorded on May 27, 2022.The property has 46,000 square feet of built space and 39,966 square feet of additional air rights for a total buildable of 85,927 square feet according to PincusCo analysis of city data. The loan price per built square foot is $173 and the price per buildable square foot is $93 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.)

Prior sales and revenue

The 46,000-square-foot property generated revenue of $1.8 million or $39 per square foot, according to the most recent income and expense figures.

The property

The 3780 Broadway parcel has frontage of 199 feet and is 125 feet deep with a total lot size of 24,979 square feet. The zoning is C4-4 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 3.44 times FAR for residential. The city-designated market value for the property in 2022 is $9.7 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 $2,590 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Washington Heights, the bulk, or 49 percent of the 78 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 23 percent of the space. In sales, Washington Heights has 1.3 times the average sales volume among other neighborhoods with $366.7 million in sales volume in the last two years and is the 24th highest in Manhattan. For development, Washington Heights has near average amount of major developments among other neighborhoods and is the 19th highest in Manhattan. It had 1 million square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 13 commercial properties representing 289,560 square feet of the 539,612 square feet. The largest owner is New York City Housing Authority, followed by Neil Fink and then Joseph J. Sbiroli. There are no active new building construction projects on this tax block.

The majority, or 55 percent of the 634,300 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 18 percent of the space.

Surrounding

Within a 400-foot radius of 3780 Broadway, Pincusco identified four commercial real estate items of interests occurred over the past 24 months.
One of those four items was a sale which Monadnock Development acquired control of the 14,815-square-foot, 22-unit rental (C1) on 545 West 156th Street and 37 other properties for $79.3 million from New York City Housing Authority on January 5, 2021.
Of those four items, three were loans above $5 million totaling $309 million. The most recent of the three was Neil Fink which borrowed $7 million from New York Community Bank secured by the 21,450-square-foot, 30-unit rental (C1) on 540 West 158th Street and one other property on February 18, 2022.

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