Maddd Equities SoBro pay $44M to Altmark Group for property in Mott Haven

Maddd Equities and SoBro through the entity MK 141 Street Owner LLC paid $44 million to Altmark Group through the entity 825 East 141st Street Property Owner LLC for office building (O6) at 825 East 141st Street in Mott Haven, Bronx and the industrial building (G7) at 804 East 141st Street in Mott Haven, Bronx.
The deal closed on March 8, 2023 and was recorded on March 21, 2023. The two properties have 235,000 square feet of built space and 13,350 square feet of additional air rights according to PincusCo analysis of city data. The sale price per built square foot is $187 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 Altmark Group was Barry Altmark. The signatory for Maddd Equities and SoBro was Lourdes Zapata.

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 825 East 141st Street.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Maddd Equities purchased two properties in two transactions for a total of $14.8 million and sold one property in one transaction for a total of $105 million over the past 24 months.
The seller Altmark Group purchased one property in one transaction for a total of $9.8 million and sold two properties in two transactions for a total of $24.2 million over the same time period. Out of the two properties, one with a total of 235,000 square feet of built space generated revenue of $8.7 million per year.

The property

The 825 East 141st Street parcel has frontage of 165 feet and is 290 feet deep with a total lot size of 39,100 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $24.9 million. The most recent loan totaled $60 million and was provided by Counterpointe Mortgage Capital on December 27, 2019.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received five DOB violations, $12,530 in ECB penalties, and $12,530 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. On these lots, there is one active major alteration construction project for a 235,000 square-foot B building. The project was developed by Allen Konstam with plans filed February 8, 2017 and permitted October 30, 2017.

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 2.2 times the average sales volume among other neighborhoods with $767.9 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven has 3.2 times the average amount of major developments relative to other neighborhoods and is the highest in Bronx. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On the tax block of 825 East 141st Street, PincusCo has identified the owners of 13 of the 28 commercial properties representing 416,875 square feet of the 1,164,225 square feet. The largest owner is Madison Realty Capital, followed by IFM Investors and then Hackman Capital Partners.
On the tax block, there were two new building construction projects totaling 879,203 square feet. The largest is a zero-unit, 879,203-square-foot S-1 building developed by Kevin Tiseo with plans filed May 3, 2021 and permitted September 23, 2021. The second largest is a zero-unit, zero-square-foot I building developed by Joshua Sager with plans filed November 2, 2022 and it has not been permitted yet.

The majority, or 72 percent of the 1.2 million square feet of built space are industrial buildings, with office buildings next occupying 24 percent of the space.

The seller

The PincusCo database currently indicates that Altmark Group owned at least 13 commercial properties in New York City with 388,693 square feet and a city-determined market value of $34.7 million. (Market value is typically about 50% of actual value.) The portfolio has $82.3 million in debt, with top three lenders as Dime Community Bank, TriState Capital Bank, and Signature Bank respectively. Within the portfolio, the bulk, or 68 percent of the 388,693 square feet of built space are industrial properties, with specialty properties next occupying 26 percent of the space. The bulk, or 98 percent of the built space, is in Bronx, with Manhattan next at 2 percent of the space.

The buyer

The PincusCo database currently indicates that Maddd Equities owned at least 12 commercial properties in New York City with 401,754 square feet and a city-determined market value of $128.8 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 52 percent of the 401,754 square feet of built space are specialty properties, with hotel properties next occupying 30 percent of the space. The bulk, or 53 percent of the built space, is in Manhattan, with Bronx next at 47 percent of the space.
The PincusCo database currently indicates that Sobro owned at least one commercial property in New York City with 20,540 square feet and a city-determined market value of $1.1 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single walkup property. It is located in Manhattan.

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