Nonprofit pays $7.9M for Boys & Girls Club building in East Morrisania

The nonprofit Commonpoint NY which also does business as the Samuel Field YM & YWHA paid $7.9 million to Madison Square Boys & Girls Club for the specialty building (P3) at 1665 Hoe Avenue in East Morrisania, Bronx. The expected use is cash flowing.
The deal closed on November 27, 2024 and was recorded on December 5, 2024. The property has 36,900 square feet of built space and 31,800 square feet of additional air rights for a total buildable of 68,800 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $214 and the price per buildable square foot is $114 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 Madison Square Boys & Girls Club was Jeffrey Dold. The signatory for Commonpoint NY was Danielle Ellman. The contract date was August 21, 2024.
The Madison Square Boys & Girls Club in 2023 won court approval to exit a bankruptcy it filed in 2022 after facing more than 140 sexual abuse claims, Reuters reported last year.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Commonpoint NY had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Madison Square Boys & Girls Club had not purchased any other properties and sold one property in one transaction for a total of $15 million over the same time period.

The property

The specialty building in East Morrisania has 36,900 square feet of built space and 31,800 square feet of additional air rights for a total buildable of 68,800 square feet according to a PincusCo analysis of city data. The parcel has frontage of 200 feet and is 100 feet deep with a total lot size of 20,000 square feet. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $12.5 million. The most recent loan totaled $11 million and was provided by Carver Federal Savings Bank on August 21, 2023.

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 $2,600 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 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 had very little sales volume relative to other neighborhoods with $76.3 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 579,474 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 13 commercial properties representing 164,603 square feet of the 272,042 square feet. The largest owner is Urban Home Ownership Corporation, followed by Barone Management and then Fairstead.
There are no active new building construction projects on this tax block.

The majority, or 53 percent of the 272,042 square feet of built space are elevator buildings, with specialty buildings next occupying 30 percent of the space.

The seller

The PincusCo database currently indicates that Madison Square Boys & Girls Club owned at least four commercial properties in New York City with 91,496 square feet and a city-determined market value of $23 million. (Market value is typically about 50% of actual value.) The portfolio has $11 million in debt, borrowed from Carver Federal Savings Bank. Within the portfolio, the bulk, or 66 percent of the 91,496 square feet of built space are P3 properties, with P5 properties next occupying 34 percent of the space. The bulk, or 66 percent of the built space, is in Bronx, with Brooklyn next at 34 percent of the space.

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