Mastermind Development signs $66.9M construction loan for 153-unit project in Tremont

Mastermind Development through the entity Belmont Cove LLC as borrower signed a new construction loan with lender NYC Housing Development Corporation valued at $66.9 million for the development site at 1840 Belmont Avenue in Tremont, Bronx.
The deal closed on June 29, 2022 and was recorded on July 18, 2022. The three properties have zero square feet of built space and 106,890 square feet of additional air rights for a total buildable of 106,890 square feet according to PincusCo analysis of city data.

On these lots, there is one active new building construction project for a 153-unit, 127,911-square-foot R-2 building. The project was developed by Radame Perez of Mastermind with plans filed March 19, 2019 and it has not been permitted yet.
The signatory for Mastermind Development was Radame Perez II. The signatory for NYC Housing Development Corporation was Ruth Moreira.

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 656 East 176th Street.

The property

The 656 East 176th Street parcel has frontage of 200 feet and is 97 feet deep with a total lot size of 13,337 square feet. The lot is irregular. The zoning is R7X which allows for up to 5 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $416,000.

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 $2,160 in OATH penalties in the last year.

The neighborhood

In Tremont, the bulk, or 40 percent of the 8.5 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 20 percent of the space. In sales, Tremont has the 22nd highest sale turnover among other neighborhoods in Bronx with $70.4 million in sales volume in the last two years. For development, Tremont has had very little major development activity relative to other neighborhoods.It had 193,801 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.

The block

On the tax block of 656 East 176th Street, PincusCo has identified the owners of four of the nine commercial properties representing 42,630 square feet of the 77,363 square feet. The two identified owners are Aquinas Housing Corporation and City of New York. There is one active new building construction project totaling 127,911 square feet. It is a 153-unit, 127,911-square-foot R-2 building developed by Radame Perez with plans filed March 19, 2019 and it has not been permitted yet.

the majority, or 55 percent of the 77,363 square feet of built space are walkup buildings, with specialty buildings next occupying 45 percent of the space.

The borrower

The PincusCo database currently indicates that Mastermind Development owned at least three commercial properties in New York City with 199,960 square feet and a city-determined market value of $30.9 million. (Market value is typically about 50% of actual value.) The portfolio has $18.9 million in debt, borrowed from City of New York. Within the portfolio, the bulk, or 100 percent of the 199,960 square feet of built space are rental condo properties, with retail properties next occupying 0 percent of the space. They are all located in Bronx.

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