Joel Wieder signs $17.2M refi loan for development in Morris Heights

Joel Wieder through the entity Gw Universe LLC as borrower signed a refi loan with lender Valley National Bank valued at $17.2 million for the 47-unit development  at 1892-1896 University Avenue in Morris Heights, Bronx.
On the lot, there is one active new building construction project for a 47-unit, 27,740 square-foot R-2 building. The project was submitted by Chaim Schwartz with plans filed June 10, 2022 and permitted January 20, 2023.
The deal closed on April 18, 2024 and was recorded on May 2, 2024. The prior lender was NorthEast Community Bank which held debt that had an original loan amount of $11.66 million that was provided on February 6, 2023.

The property has 2,040 square feet of built space and 31,049 square feet of additional air rights for a total buildable of 31,049 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $553 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 Joel Wieder was Joel Wieder. The signatory for Valley National Bank was Terence McArdle.

The property

The parcel has frontage of 80 feet and is 116 feet deep with a total lot size of 9,026 square feet. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $641,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $970 in OATH penalties in the last year.

The neighborhood

In Morris Heights, The majority, or 70 percent of the 15.3 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 21 percent of the space. In sales, Morris Heights has the 28th highest sale turnover among other neighborhoods in Bronx with $31.4 million in sales volume in the last two years. For development, Morris Heights has 1.2 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Bronx. It had 1.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 13 commercial properties representing 192,626 square feet of the 372,576 square feet. The largest owner is Yechiel Newhouse, followed by Robert Khomari and then New York City Housing Authority.
On the tax block, there were two new building construction projects totaling 37,484 square feet. The largest is a 47-unit, 27,740 square-foot residential (R-2) building submitted by Chaim Schwartz with plans filed June 10, 2022 and permitted January 19, 2023. The second largest is a 15-unit, 9,743 square-foot residential (R-2) building submitted by Yaniv Cohen with plans filed September 24, 2021 and permitted April 4, 2023.

The majority, or 70 percent of the 372,576 square feet of built space are walkup buildings, with elevator buildings next occupying 15 percent of the space.

The borrower

The PincusCo database currently indicates that Joel Wieder owned at least six commercial properties with 86 residential units in New York City with 44,613 square feet and a city-determined market value of $12.1 million. (Market value is typically about 50% of actual value.) The portfolio has $71 million in debt, with top three lenders as NorthEast Community Bank, Berkadia Commercial Mortgage, and S3 Capital respectively. Within the portfolio, the bulk, or 45 percent of the 44,613 square feet of built space are elevator properties, with walkup properties next occupying 41 percent of the space. The bulk, or 95 percent of the built space, is in Brooklyn, with Bronx next at 5 percent of the space.

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