Mendel Kaff signs $43M refi for 116-unit complex in Soundview
Mendel Kaff through the entity Watson Development, LLC as borrower signed a refi loan with lender Valley National Bank valued at $43 million for the 116-unit residential walkup building (C1) at 1466 Watson Avenue in Soundview, Bronx.
The deal closed on July 5, 2023 and was recorded on July 11, 2023. The prior lender was Bank of Princeton which held debt that had an original loan amount of $27.2 million.
The property has 76,643 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $561 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 December 16, 2020, for $4.7 million. The signatory for Mendel Kaff was Mendel Kaff. The signatory for Valley National Bank was Terence J. McArdle.
The property
The residential walkup building with 116 residential units in Soundview has 76,643 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 150 feet deep with a total lot size of 29,999 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.8 million. The most recent loan totaled $27.2 million and was provided by Bank of Princeton on April 29, 2021.
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 nine DOB violations and $1,580 in OATH penalties in the last year.
Development
On the lot, there is one active major alteration construction project for a 116-unit, 77,484 square-foot R-2 building. The project was submitted by David Kornitzer with plans filed August 31, 2020 and permitted July 20, 2021.
The block
On this tax block, PincusCo has identified the owners of three of the three commercial properties representing 169,152 square feet of the 169,152 square feet. The two identified owners are NYC Department Of Education and Mendel Kaff.
There are no active new building construction projects on this tax block.
The majority, or 55 percent of the 169,152 square feet of built space are specialty buildings, with walkup buildings next occupying 45 percent of the space.
The borrower
The PincusCo database currently indicates that Mendel Kaff owned at least five commercial properties with 755 residential units in New York City with 771,969 square feet and a city-determined market value of $53.3 million. (Market value is typically about 50% of actual value.) The portfolio has $189.8 million in debt, with top three lenders as Starwood Mortgage Capital, Bank of Montreal, and Bank of Princeton respectively. Within the portfolio, the bulk, or 78 percent of the 771,969 square feet of built space are elevator properties, with walkup properties next occupying 22 percent of the space. They are all located in Bronx.
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