Maddd Equities, SoBro pay $16M to Tiffany Lumber for dev site in Morrisania

Maddd Equities, South Bronx Overall Economic Development Corporation, and SoBro through the entity Sobro Local Development Corporation paid $16 million to Tiffany Lumber through the entity Tiffany Lumber Co., Inc. for the industrial building (E1) at 422 East 165th Street in Morrisania, Bronx, specialty building (Z9) at 1004 Brook Avenue in Morrisania, Bronx, and specialty building (Z9) at 416 East 165th Street in Morrisania, Bronx.
The deal closed on June 27, 2023 and was recorded on July 7, 2023. The six properties have 19,300 square feet of built space and 31,198 square feet of additional air rights for a total buildable of 50,510 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $829 and the price per buildable square foot is $316 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.)
To finance the purchase, Maddd Equities, South Bronx Overall Economic Development Corporation, and SoBro signed a $12.3 million acquisition loan with Metropolitan Commercial Bank. Jorge Madruga of Maddd Equities signed for the development firm.

For the acquisition, the signatory for Tiffany Lumber was Christopher D. McDonald. The signatory for Maddd Equities, South Bronx Overall Economic Development Corporation, and SoBro was Delilah Tyson.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 422 East 165th Street.

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 $4 million and sold one property in one transaction for a total of $105 million over the past 24 months.
The seller Tiffany Lumber had not purchased any other properties and had not sold any properties over the same time period. Out of the six properties, one with a total of 19,300 square feet of built space generated revenue of $218,476 per year.

The property

The industrial building in Morrisania has 19,300 square feet of built space and 31,198 square feet of additional air rights for a total buildable of 50,510 square feet according to a PincusCo analysis of city data. The parcel has frontage of 108 feet and is 195 feet deep with a total lot size of 21,221 square feet. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $1.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $600 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 $1 million on this tax lot.

The neighborhood

In Morrisania, The majority, or 52 percent of the 25.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 20 percent of the space. In sales, Morrisania has had very little sales volume relative to other neighborhoods with $245.2 million in sales volume in the last two years. For development, Morrisania has had very little major development activity relative to other neighborhoods.It had 382,735 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On the tax block of 422 East 165th Street, PincusCo has identified the owners of 13 of the 27 commercial properties representing 197,146 square feet of the 269,736 square feet. The largest owner is Westrock Development, followed by South Bronx Overall Economic Development Corporation and then Sobro.
There are no active new building construction projects on this tax block.

The majority, or 47 percent of the 269,736 square feet of built space are elevator buildings, with industrial buildings next occupying 46 percent of the space.

The buyer

The PincusCo database currently indicates that Maddd Equities owned at least 15 commercial properties with 22 residential units in New York City with 791,254 square feet and a city-determined market value of $173.8 million. (Market value is typically about 50% of actual value.) The portfolio has $242.9 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 37 percent of the 791,254 square feet of built space are office properties, with W3 properties next occupying 18 percent of the space. The bulk, or 58 percent of the built space, is in Bronx, with Manhattan next at 27 percent of the space.
The PincusCo database currently indicates that South Bronx Overall Economic Development Corporation owned at least 15 commercial properties with 157 residential units in New York City with 197,599 square feet and a city-determined market value of $22.2 million. (Market value is typically about 50% of actual value.) The portfolio has $5.4 million in debt, borrowed from Raza Development Fund, Inc.. Within the portfolio, the bulk, or 70 percent of the 197,599 square feet of built space are walkup properties, with elevator properties next occupying 23 percent of the space. The bulk, or 67 percent of the built space, is in Manhattan, with Brooklyn next at 27 percent of the space.
The PincusCo database currently indicates that Sobro owned at least seven commercial properties with 14 residential units in New York City with 308,734 square feet and a city-determined market value of $36.2 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 89 percent of the 308,734 square feet of built space are office properties, with walkup properties next occupying 7 percent of the space. The bulk, or 93 percent of the built space, is in Bronx, with Manhattan next at 7 percent of the space.

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