Johnson Development signs $23.5M refi loan with Comerica Bank for industrial in Morrisania
Johnson Development Associates through the entity Jsf Park Avenue Cmpi, LLC as borrower signed a refi loan with lender Comerica Bank valued at $23.5 million for the industrial building (E7) at 3362 Park Avenue in Morrisania, Bronx.
The deal closed on October 13, 2022 and was recorded on October 18, 2022. The prior lender was Fifth Third Bank which held debt that had an original loan amount of $21.1 million. The property has 84,895 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $276 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 owner bought the property on May 23, 2017, for $9.9 million. The signatory for Johnson Development Associates was Jason C. Lynch. The signatory for Comerica Bank was Laura Anderson.
Prior sales and revenue
The 84,895-square-foot property generated revenue of $1.6 million or $19 per square foot, according to the most recent income and expense figures.
The property
The 3362 Park Avenue parcel has frontage of 255 feet and is 97 feet deep with a total lot size of 34,270 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $7.4 million.The most recent loan totaled $21.1 million and was provided by Fifth Third Bank on August 23, 2019.
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 $1,442 in OATH penalties in the last year.
Development
For the tax lot building, it received its initial certificate of occupancy on August 2, 2018. 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 Morrisania, the majority, or 52 percent of the 25.8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 19 percent of the space. In sales, Morrisania has had very little sales volume relative to other neighborhoods with $165.9 million in sales volume in the last two years. For development, Morrisania has had very little major development activity relative to other neighborhoods.It had 797,091 square feet of commercial and multi-family construction under development in the last two years, which represents 3 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 245,962 square feet of the 402,079 square feet. The largest owner is Storage Post, followed by Johnson Development Associates and then Rami Esses.
On the tax block, there was one new building construction project filed totaling 13,737 square feet. It is a 16-unit, 13,737-square-foot R-2 building developed by Alan Waintraub with plans filed February 23, 2022.
The majority, or 70 percent of the 402,079 square feet of built space are industrial buildings, with elevator buildings next occupying 27 percent of the space.
The borrower
The PincusCo database currently indicates that Johnson Development Associates owned at least one commercial property in New York City with 84,895 square feet and a city-determined market value of $7.4 million. (Market value is typically about 50% of actual value.) The portfolio has $21.1 million in debt, borrowed from Fifth Third Bank. The portfolio consists of at least a single industrial property. It is located in Bronx.
Direct link to Acris document. link