Maddd, Joy sign $302.7M construction loan for 611-unit project in Inwood

Maddd Equities and Joy Construction through the entity Sherman Creek Owner LLC as borrower signed a new construction loan with lender NYC Housing Development Corporation valued at $302.7 million for the 611-unit project at 375 West 207th Street in Inwood, Manhattan.
On the lot, there is one active new building construction project for a 611-unit, 543,636 square-foot R-2 building. The project was developed by Jorge Madruga with plans filed August 22, 2018.
The deal closed on January 27, 2023 and was recorded on February 8, 2023. The property has zero square feet of built space and 430,881 square feet of additional air rights for a total buildable of 430,881 square feet according to PincusCo analysis of city data. The loan price per built square foot is $N/A and the price per buildable square foot is $702 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 owner bought the property on February 13, 2015, for $4.2 million. The signatory for Maddd Equities and Joy Construction was Eli Weiss.

The property

The 375 West 207th Street parcel has frontage of 169 feet and is 190 feet deep with a total lot size of 71,575 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 $4.8 million.The most recent loan totaled $27.5 million and was provided by Metropolitan Commercial Bank on December 10, 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 not received any significant violations in the last year.

The neighborhood

In Inwood, the bulk, or 44 percent of the 14.9 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 33 percent of the space. In sales, Inwood has near average sales volume among other neighborhoods with $377.8 million in sales volume in the last two years and is the 27th highest in Manhattan. For development, Inwood has 1.7 times the average amount of major developments relative to other neighborhoods and is the 17th highest in Manhattan. It had 1.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owner of the one commercial property that spans that spans zero square feet on the block.The identified owner is Maddd Equities.
On the tax block, there was one new building construction project filed totaling 543,636 square feet. It is a 611-unit, 543,636-square-foot R-2 building developed by Jorge Madruga with plans filed August 22, 2018 and it has not been permitted yet.

All properties are development.

The borrower

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.
The PincusCo database currently indicates that Joy Construction owned at least six commercial properties in New York City with 414,829 square feet and a city-determined market value of $125.2 million. (Market value is typically about 50% of actual value.) The portfolio has $127 million in debt, borrowed from Natixis and Bank Leumi. Within the portfolio, the bulk, or 43 percent of the 414,829 square feet of built space are elevator properties, with hotel properties next occupying 29 percent of the space. The bulk, or 72 percent of the built space, is in Manhattan, with Brooklyn next at 28 percent of the space.

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