Joy, Azimuth sign $168M construction loan with NYC HDC for development in Unionport

Joy Construction and Azimuth Development Group through the entity Bruckner Lihtc Owner LLC as borrower signed a new construction loan with lender NYC Housing Development Corporation valued at $168 million for the development (V1) at 2069 Bruckner Boulevard in Unionport, Bronx.

On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 293,478 square feet. The largest is a new building project for a 265-unit, 280,731 square-foot R-2 building submitted by Azimuth Development Group and filed by Guido Subotovsky with plans filed September 10, 2019 and it has not been permitted yet. The second largest is a new building project for a 65-unit, 12,747 square-foot R-2 building submitted by Azimuth Development Group and filed by Guido Subotovsky with plans filed May 17, 2022 and it has not been permitted yet.

The deal closed on June 28, 2023 and was recorded on July 13, 2023. The property has 10,200 square feet of built space and 243,912 square feet of additional air rights for a total buildable of 243,912 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $16,466 and the price per buildable square foot is $688 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 April 12, 2018, for $5.1 million. The signatory for Joy Construction and Azimuth Development Group was Eli Weiss.

The property

The development building in Unionport has 10,200 square feet of built space and 243,912 square feet of additional air rights for a total buildable of 243,912 square feet according to a PincusCo analysis of city data. The parcel has frontage of 289 feet and is 211 feet deep with a total lot size of 60,978 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.7 million.

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 $350 in OATH penalties in the last year.

The neighborhood

In Unionport, The bulk, or 32 percent of the 6.5 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 20 percent of the space. In sales, Unionport has near average sales volume among other neighborhoods with $353.6 million in sales volume in the last two years and is the 2nd highest in Bronx. For development, Unionport has had very little major development activity relative to other neighborhoods.It had 695,312 square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the two commercial properties representing 112,507 square feet of the 112,507 square feet. The two identified owners are Chestnut Holdings of New York and Azimuth Development Group.
On the tax block, there were two new building construction projects totaling 293,478 square feet. The largest is a 265-unit, 280,731 square-foot residential (R-2) building submitted by Azimuth Development Group and filed by Guido Subotovsky with plans filed September 10, 2019 and it has not been permitted yet. The second largest is a 65-unit, 12,747 square-foot residential (R-2) building submitted by Azimuth Development Group and filed by Guido Subotovsky with plans filed May 17, 2022 and it has not been permitted yet.

The majority, or 100 percent of the 112,507 square feet of built space are elevator buildings, with development buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Joy Construction owned at least six commercial properties with 186 residential units in New York City with 414,829 square feet and a city-determined market value of $133.9 million. (Market value is typically about 50% of actual value.) The portfolio has $127 million in debt, borrowed from Natixis and Bank Leumi. Within the portfolio, the bulk, or 43 percent of the 414,829 square feet of built space are elevator properties, with hotel properties next occupying 29 percent of the space. The bulk, or 72 percent of the built space, is in Manhattan, with Brooklyn next at 28 percent of the space.
The PincusCo database currently indicates that Azimuth Development Group owned at least four commercial properties with 80 residential units in New York City with 149,420 square feet and a city-determined market value of $14.3 million. (Market value is typically about 50% of actual value.) The portfolio has $25.8 million in debt, with top three lenders as KeyBank, Raza Development Fund, Inc., and EB-5 New York State respectively. Within the portfolio, the bulk, or 59 percent of the 149,420 square feet of built space are specialty properties, with D6 properties next occupying 34 percent of the space. The bulk, or 93 percent of the built space, is in Manhattan, with Bronx next at 7 percent of the space.

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