Maheshchand Ratanji signs $15M refi for new hotel in East Morrisania

Maheshchand Ratanji through the entity Southern Blvd Hotel LLC as borrower signed a refi loan with lender State Bank of Texas valued at $15 million for the hotel building (H9) at 1122 Southern Boulevard in East Morrisania, Bronx.
The deal closed on July 16, 2024 and was recorded on July 23, 2024. The prior lender was State Bank of Texas which held debt that had an original loan amount of $8.8 million. The property has 33,101 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $453 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 October 28, 2015, for $1.2 million. The signatory for Maheshchand M. Ratanji was Maheshchand M. Ratanji. The signatory for State Bank of Texas was Melody Collins.

Prior sales and revenue

The 33,101-square-foot property generated revenue of $3.1 million or $92 per square foot, according to the most recent income and expense figures.

The property

The hotel building in East Morrisania has 33,101 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 9,999 square feet. The zoning is C8-3 which allows for up to 2 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $8 million. The most recent loan totaled $8.8 million and was provided by State Bank of Texas on June 29, 2022.

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 five DOB violations, $32,400 in ECB penalties, and $31,170 in OATH penalties in the last year.

Development

On the lot, there was a new building construction project, 220539594, for a 72-unit, 28,147 square-foot R-1 building. The project was submitted by Maheshchand Ratanji and filed by Nehalkumar Gandhi with plans filed June 30, 2016 and permitted September 18, 2018.

The neighborhood

In East Morrisania, The bulk, or 43 percent of the 12 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, East Morrisania has the 18th highest sale turnover among other neighborhoods in Bronx with $63.2 million in sales volume in the last two years. For development, East Morrisania has had very little major development activity relative to other neighborhoods.It had 740,312 square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 17 commercial properties representing 103,500 square feet of the 193,336 square feet. The largest owner is Maheshchand M. Ratanji, followed by Moshe Friedman and then United States Postal Service.
On the tax block, there were two new building construction projects totaling 35,068 square feet. The largest is a 72-unit, 28,147 square-foot hotel/dormitory/shelter (R-1) building submitted by Maheshchand Ratanji and filed by Nehalkumar Gandhi with plans filed June 30, 2016 and permitted March 6, 2017. The second largest is a 10-unit, 6,921 square-foot residential (R-2) building submitted by Cherryan Sankar with plans filed May 25, 2018 and permitted July 24, 2019.

The majority, or 26 percent of the 193,336 square feet of built space are walkup buildings, with elevator buildings next occupying 25 percent of the space.

The borrower

The PincusCo database currently indicates that Maheshchand M. Ratanji owned at least 18 commercial properties with 105 residential units in New York City with 355,464 square feet and a city-determined market value of $57.6 million. (Market value is typically about 50% of actual value.) The portfolio has $164.7 million in debt, with top three lenders as State Bank of Texas, Webster Bank, and PCSB Bank respectively. Within the portfolio, the bulk, or 91 percent of the 355,464 square feet of built space are hotel properties, with H3 properties next occupying 4 percent of the space. The bulk, or 57 percent of the built space, is in Brooklyn, with Bronx next at 31 percent of the space.

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