Lender Urban Standard Capital acquires 40-unit rental project in Hunts Point from borrower in $3.9M foreclosure

Urban Standard Capital through the entity USC 883 Bryant 2 LLC acquired from the prior property owner Gregory Harvey through the entity Masani Holding Company Corp., the 40-unit development project (D7) at 883 Bryant Avenue in Hunts Point, Bronx, in a $3.9 million foreclosure auction.
On this parcel, there is a new building project for a 40-unit, 21,231 square-foot residential (R-2) building submitted by Greg Harvey with plans filed February 12, 2021 and permitted July 26, 2022.
The transfer closed on May 1, 2024 and was recorded on May 3, 2024. The property has 22,453 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $175 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 seller bought the property on July 13, 2020, for $640,000. The signatory for Gregory Harvey was Seth Weissman. The signatory for Urban Standard Capital was Seth Weissman. The Lender Urban Standard Capital in this transaction is acquiring control of the property from its former borrower. The former owner Gregory Harvey bought the property for $640,000 in 2020 and in June 2021, Urban Standard Capital provided him a $5.5 million construction loan.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Urban Standard Capital purchased three properties in two transactions for a total of $5.2 million and sold two properties in two transactions for a total of $8.8 million over the past 24 months.
The seller Gregory Harvey purchased one property in one transaction for a total of $5.7 million and had not sold any properties over the same time period.

The property

The residential elevator building with 40 residential units in Hunts Point has 22,453 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 4,999 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $361,000. The most recent loan totaled $5.5 million and was provided by Urban Standard Capital on June 30, 2021.

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 six DOB violations, $31,250 in ECB penalties, and $34,850 in OATH penalties in the last year.

The block

On this tax block, PincusCo has identified the owners of eight of the 43 commercial properties representing 238,037 square feet of the 690,884 square feet. The largest owner is Rami Segal, followed by Nuveen Real Estate and then New York City Housing Authority.
On the tax block, there were three new building construction projects totaling 51,934 square feet. The largest is a 28-unit, 23,944 square-foot hotel/dormitory/shelter (R-1) building submitted by Ari Thaler with plans filed August 29, 2018 and it has not been permitted yet. The second largest is a 40-unit, 21,231 square-foot residential (R-2) building submitted by Greg Harvey with plans filed February 12, 2021 and permitted July 26, 2022.

The majority, or 47 percent of the 690,884 square feet of built space are walkup buildings, with industrial buildings next occupying 33 percent of the space.

The seller

The PincusCo database currently indicates that Gregory Harvey owned at least two commercial properties with 40 residential units in New York City with 17,625 square feet and a city-determined market value of $1.9 million. (Market value is typically about 50% of actual value.) The portfolio has $5.5 million in debt, borrowed from Urban Standard Capital. Within the portfolio, the bulk, or 100 percent of the 17,625 square feet of built space are retail properties, with development properties next occupying 0 percent of the space. They are all located in Bronx.

The buyer

The PincusCo database currently indicates that Urban Standard Capital owned at least eight commercial properties with 44 residential units in New York City with 37,813 square feet and a city-determined market value of $6.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 58 percent of the 37,813 square feet of built space are walkup properties, with mixed-use properties next occupying 32 percent of the space. The bulk, or 96 percent of the built space, is in Brooklyn, with Manhattan next at 4 percent of the space.