Maddd Equities signs ground lease valued at $4M for dev site in Mt Hope

Jorge Madruga’s Maddd Equities as a tenant through the entity 200 East Tremont JV LLC signed a 99-year ground lease valued at $4 million with landlords Fatin Salhut and Mohammad Salhut through the entity M.I.H.S. LLC for a development site at 200 East Tremont Avenue in Mt Hope, the Bronx. There are no new building plans yet filed for the parcel, according to a PincusCo review of city records.
The deal closed on January 25, 2023 and was recorded on February 8, 2023.The property has 4,400 square feet of built space and 61,803 square feet of additional air rights for a total buildable of 66,201 square feet according to PincusCo analysis of city data. The sale price per built square foot is $909 and the price per buildable square foot is $60 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 signatory for Fatin Salhut and Mohammad Salhut was Fatin Salhut and Mohammad Salhut. The signatory for Maddd Equities was Christopher Lacovara. This is a 99-year ground lease.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Maddd Equities purchased one property in one transaction for a total of $10.8 million and sold one properties in one transactions for a total of $105 million over the past 24 months.
The seller Fatin Salhut had not purchased any other properties and had not sold any properties over the same time period. The 4,400-square-foot property generated revenue of $69,730 or $16 per square foot, according to the most recent income and expense figures.

The property

The 200 East Tremont Avenue parcel has frontage of 100 feet and is 110 feet deep with a total lot size of 10,997 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $310,000.

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 $2,150 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Mt Hope, the majority, or 57 percent of the 11 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Mt Hope has the 18th highest sale turnover among other neighborhoods in Bronx with $92 million in sales volume in the last two years. For development, Mt Hope has had very little major development activity relative to other neighborhoods.It had 789,461 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 10 commercial properties representing 225,040 square feet of the 331,010 square feet. The largest owner is Zenon Chernyk, followed by Finkelstein Timberger East Real Estate and then City of New York.
There are no active new building construction projects on this tax block.

The majority, or 40 percent of the 331,010 square feet of built space are elevator buildings, with walkup buildings next occupying 31 percent of the space.

The buyer

The PincusCo database currently indicates that Maddd Equities owned at least 11 commercial properties in New York City with 397,354 square feet and a city-determined market value of $128.5 million. (Market value is typically about 50% of actual value.) The portfolio has $211.9 million in debt, with top three lenders as NYC Housing Development Corporation, Sterling National Bank, and Metropolitan Commercial Bank respectively. Within the portfolio, the bulk, or 53 percent of the 397,354 square feet of built space are specialty properties, with hotel properties next occupying 31 percent of the space. The bulk, or 54 percent of the built space, is in Manhattan, with Bronx next at 46 percent of the space.

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