Kaushik Patel signs $6.8M loan with Parke Bank for 70-key hotel project in Melrose

Kaushik Patel through the entity Melrose Hotel LLC as borrower signed an initial loan with lender Parke Bank valued at $6.8 million for the under construction, 70-room hotel building (H3) at 290 East 150th Street in Melrose, Bronx.
On the lot, there is one active new building construction project, 210180999, for a 70-unit, 22,031 square-foot hotel (R-1) building. The project was submitted by Kaushik Patel with plans filed March 12, 2020 and permitted March 10, 2022.
The deal closed on July 31, 2024 and was recorded on August 20, 2024. The property has 30,778 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $222 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 September 15, 2023, for $2.2 million. The signatory for Kaushik Patel was Kaushikbhai M. Patel.

The property

The hotel building in Melrose has 30,778 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 4,500 square feet. The lot is irregular. 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 $602,000.

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 four DOB violations, $4,980 in ECB penalties, and $8,860 in OATH penalties in the last year.

The neighborhood

In Melrose, The majority, or 57 percent of the 8 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 17 percent of the space. In sales, Melrose has the 23rd highest sale turnover among other neighborhoods in Bronx with $40.7 million in sales volume in the last two years. For development, Melrose has had very little major development activity relative to other neighborhoods.It had 467,236 square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 39 commercial properties representing 85,020 square feet of the 328,217 square feet. The largest owner is Robert Rosenberg, followed by Zalmen Management and then New York Psychotherapy And Counseling Center.
On the tax block, there was one new building construction project filed totaling 22,031 square feet. It is a 70-unit, 22,031 square-foot hotel/dormitory/shelter (R-1) building submitted by Kaushik Patel with plans filed March 12, 2020 and permitted March 10, 2022.

The majority, or 28 percent of the 328,217 square feet of built space are industrial buildings, with walkup buildings next occupying 23 percent of the space.

The borrower

The PincusCo database currently indicates that Kaushik Patel owned at least five commercial properties in New York City with 173,316 square feet and a city-determined market value of $21.1 million. (Market value is typically about 50% of actual value.) The portfolio has $34.6 million in debt, with top three lenders as Hanmi Bank, Queensboro Funding, and Parke Bank respectively. Within the portfolio, all identified are hotel properties. The bulk, or 58 percent of the built space, is in Queens, with Bronx next at 42 percent of the space.

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