KIPP signs $209.3M construction loan for school in Mott Haven

KIPP NYC through the entity Canal West 75, LLC as borrower signed a construction loan with lender Bank of New York Mellon as trustee valued at $209.3 million for the industrial building (G9) at 75 Canal Street in Mott Haven, Bronx.

For the tax lot building, it received its initial certificate of occupancy on June 13, 2017. On the lot, there is one active new building construction project for a school building. The project was developed by Ahkilah Johnson with plans filed April 1, 2022 and it has not been permitted yet.
The deal closed on January 5, 2023 and was recorded on January 30, 2023.
The owner bought the property on May 27, 2021, for $21.7 million. The signatory for KIPP was Alicia Johnson. The signatory for Bank of New York Mellon as trustee was Craig S. Wenzler.

Prior sales and revenue

The 12,194-square-foot property generated revenue of $380,428 or $31 per square foot, according to the most recent income and expense figures.

The property

The 75 Canal Street parcel has frontage of 269 feet and is 164 feet deep with a total lot size of 33,640 square feet. The lot is irregular. The zoning is M1-4/R7X which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.5 million.The most recent loan totaled $11.4 million and was provided by BlueHub Loan Fund on May 27, 2021.

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 $3,650 in ECB penalties and $3,650 in OATH penalties in the last year.

The neighborhood

In Mott Haven, the bulk, or 43 percent of the 41.3 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 24 percent of the space. In sales, Mott Haven has 2.1 times the average sales volume among other neighborhoods with $715.6 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven is the 9th most active neighborhood among other neighborhoods. It had 4.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 11 commercial properties representing 53,755 square feet of the 185,814 square feet. The largest owner is Victor Weingarten, followed by KIPP NYC and then Israel Carmel.
On the tax block, there were four new building construction projects totaling 146,746 square feet. The largest is a  76,486-square-foot school E building developed by Evelyn Hey with plans filed June 29, 2020 and it has not been permitted yet. The second largest is a 61,941-square-foot S-1 building developed by Sharone Ben Harosh with plans filed May 23, 2022 and it has not been permitted yet.

The majority, or 82 percent of the 185,814 square feet of built space are industrial buildings, with hotel buildings next occupying 12 percent of the space.

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