Karten, Alcova Capital acquire full control of 197-unit Bronx dev site, sign $17M refi with Forest Road

580 Gerard Avenue (Credit: Karten Organization)

Sharone Karten’s Karten Organization and investment partner Alcova Capital Management acquired full control of a Bronx development site planned to have 197 units and retail, from Joshua Schuster’s Silverback Development. Karten and Alcova also obtained $17 million in financing from the Forest Road Company, a Midtown-based real estate investment firm, according to property records.
Alcova and Karten through the entity SB Gerard Avenue LLC as borrower signed a refi loan with lender Forest Road through the entity Access Road RE LLC valued at $17 million for the development site at 586 Gerard Avenue in Concourse, the Bronx.
The deal closed on November 3, 2021 and was recorded on November 15, 2021.
The refinance was held up, according to court records, because Schuster would not provide his consent, and at the same time was asking for repayment of certain debts related to the project. PincusCo reported on the dispute in late October 2021.
Court records show the case was terminated on December 5, 2021. A related case, in which a principal with Alcova is seeking a $1.36 million judgment against Schuster, remains active.

A statement from the developers said, “Silverback hands off the well-positioned and capitalized property to the Karten Organization and the existing project partners.”

Karten filed plans in September 2021 for a 197-unit, 151,663-square-foot mixed-use building at 580 Gerard Avenue with the plans filed under the address 586 Gerard Avenue. The building will have nine stories.

The owners bought the property on September 2, 2020, for $16.9 million, using Opportunity Zone funding, according to the developers.
The signatory for Alcova Capital Management and Karten Organization was Sharone Karten.

Within a 400-foot radius of 580 Gerard Avenue, Pincusco identified one commercial real estate item of interests occurred over the past 24 months.
It was a loan which Mitchell Enterprises borrowed $24.1 million from Sterling National Bank secured by the 84,795-square-foot, two-unit industrial (W3) on 192 East 151st Street on April 22, 2021.

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