MDG, Wavecrest, Infinite Horizons sign 99-year lease with NYCHA valued at $162.2M in Bronx

MDG Design + Construction, Wavecrest Management, and Infinite Horizons through the entity EGC LLC signed a 99-year ground lease as tenant valued at $162.2 million with landlord New York City Housing Authority for the 877-unit residential elevator complex Eastchester Gardens (D6) at 1130 Burke Avenue in Allerton, Bronx. The expected use is cash flowing.
At the same time the new ground tenants borrowed a total of $435 million composed of $221.7 million from Merchants Capital assigned to Fannie Mae, $149.9 million purchase money mortgage from NYCHA and $63.5 million building loan from NYC Housing Development Corporation. A release from NYCHA said from that financing there was $391 million for repairs and upgrades as part of the PACT agreement.
The deal closed on March 27, 2025 and was recorded on April 18, 2025. The property has 881,200 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $184 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 New York City Housing Authority was Jonathan Gouveia . The signatory for MDG Design + Construction , Wavecrest Management , and Infinite Horizons was Matthew Rooney . MDG Design + Construction also writes its name MDG Design & Construction.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer MDG Design + Construction had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller New York City Housing Authority purchased 10 properties in two transactions for a total of $151.5 million and sold 214 properties in eight transactions for a total of $360.9 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Nicole Branca, head officer and Dave Beer, officer. The business entities are Breaking Ground Management Corp and Bg Betances Lp. The 881,200-square-foot property generated revenue of $11.6 million or $13 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 877 residential units in Allerton has 881,200 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 1,202 feet and is 579 feet deep with a total lot size of 607,392 square feet. The lot is irregular. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $38.5 million.

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 one DOB violation, one housing violation, and $1,250 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 block

On this tax block, PincusCo has identified the owner of the one commercial property that spans that spans 881,200 square feet on the block.The identified owner is New York City Housing Authority.
There are no active new building construction projects on this tax block.

All properties are elevator.

The seller

The PincusCo database currently indicates that New York City Housing Authority owned at least 557 commercial properties with 162,203 residential units in New York City with 135,273,822 square feet and a city-determined market value of $11.5 billion. (Market value is typically about 50% of actual value.) The portfolio has $79.3 million in debt, borrowed from Breaking Ground. Within the portfolio, the bulk, or 97 percent of the 135,273,822 square feet of built space are elevator properties, with walkup properties next occupying 3 percent of the space. The bulk, or 34 percent of the built space, is in Manhattan, with Brooklyn next at 31 percent of the space.

The buyer

The PincusCo database currently indicates that MDG Design + Construction owned at least 85 commercial properties with 2,489 residential units in New York City with 1,999,078 square feet and a city-determined market value of $162.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 66 percent of the 1,999,078 square feet of built space are walkup properties, with elevator properties next occupying 32 percent of the space. The bulk, or 50 percent of the built space, is in Manhattan, with Brooklyn next at 32 percent of the space.
The PincusCo database currently indicates that Wavecrest Management owned at least 15 commercial properties with 1,225 residential units in New York City with 1,251,219 square feet and a city-determined market value of $83 million. (Market value is typically about 50% of actual value.) The portfolio has $16.5 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 88 percent of the 1,251,219 square feet of built space are elevator properties, with walkup properties next occupying 12 percent of the space. The bulk, or 90 percent of the built space, is in Bronx, with Brooklyn next at 7 percent of the space.
The PincusCo database currently indicates that Infinite Horizons owned at least six commercial properties with 144 residential units in New York City with 102,581 square feet and a city-determined market value of $11.9 million. (Market value is typically about 50% of actual value.) The portfolio has $69.2 million in debt, borrowed from Webster Bank and U.S. Bank. Within the portfolio, the bulk, or 42 percent of the 102,581 square feet of built space are D4 properties, with walkup properties next occupying 37 percent of the space. They are all located in Manhattan.

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