Nonprofit pays $8.4M for two industrial properties in Mt Hope

The nonprofit ACMH through the entity ACMH Jerome Avenue Housing Development Fund Corporation paid $8.4 million to Gigi Porcelli through the entity Porlos Realty Corp. for two industrial buildings (E9) at 1760 and 1768 Jerome Avenue in Mt Hope, Bronx.
ACMH financed the purchase with a $10.7 million loan with Enterprise Community Partners.
The deal closed on May 24, 2023 and was recorded on June 2, 2023. The two properties have 16,560 square feet of built space and 67,714 square feet of additional air rights for a total buildable of 84,273 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $507 and the price per buildable square foot is $99 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 Gigi Porcelli was Gigi Porcelli. The signatory for ACMH was Daniel K. Johansson

ACMH provides support and housing for individuals impacted by mental illness, according to its website.

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 1760 Jerome Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer ACMH had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Gigi Porcelli had not purchased any other properties and had not sold any properties over the same time period. The two properties with a total of 16,560 square feet of built space generated revenue of $256,902 per year or $16 per square foot. The sale price per square foot was $507.

The property

The industrial building in Mt Hope has 16,560 square feet of built space and 67,714 square feet of additional air rights for a total buildable of 84,273 square feet according to a PincusCo analysis of city data. The parcel has frontage of 90 feet and is 100 feet deep with a total lot size of 9,000 square feet. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $873,000.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations 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 Mt Hope, The majority, or 57 percent of the 11 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Mt Hope has the 18th highest sale turnover among other neighborhoods in Bronx with $91.9 million in sales volume in the last two years. For development, Mt Hope has had very little major development activity relative to other neighborhoods.It had 732,131 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On the tax block of 1760 Jerome Avenue, PincusCo has identified the owners of six of the 15 commercial properties representing 278,570 square feet of the 431,971 square feet. The largest owner is Procida Companies, followed by Pistilli Realty Group and then Mount Hope Housing Company.
On the tax block, there was one new building construction project filed totaling 126,199 square feet. It is a 103-unit, 126,199 square-foot residential (R-2) building submitted by Procida Companies and filed by Mario Procida with plans filed February 23, 2017 and permitted May 5, 2021.

The majority, or 50 percent of the 431,971 square feet of built space are elevator buildings, with walkup buildings next occupying 31 percent of the space.

The buyer

The PincusCo database currently indicates that ACMH owned at least one commercial property with 86 residential units in New York City with 65,653 square feet and a city-determined market value of $8 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single elevator property. It is located in Bronx.

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