Nonprofit signs $8.8M loan for homeless shelter in University Heights

New Destiny Housing Corporation through the entity Citywide Supportive Housing, Inc. as borrower signed a loan with lender NYS Homeless and Housing Assistance and Community Preservation Corporation valued at $8.8 million for the 27-unit specialty building (N9) at 2303 Andrews Avenue North in University Heights, Bronx.
The deal closed on January 31, 2023 and was recorded on February 28, 2023.The property has 31,770 square feet of built space and 3,942 square feet of additional air rights for a total buildable of 35,690 square feet according to PincusCo analysis of city data. The loan price per built square foot is $275 and the price per buildable square foot is $245 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 Destiny Housing Corporation was Nicole Branca. The signatory for NYS Homeless and Housing Assistance and Community Preservation Corporation was Dana Greenberg.

The property

The 2303 Andrews Avenue North parcel has frontage of 83 feet and is 125 feet deep with a total lot size of 10,375 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 $7.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $160 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 $5 million on this tax lot.

The neighborhood

In University Heights, the bulk, or 41 percent of the 9.8 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 36 percent of the space. In sales, University Heights has the 29th highest sale turnover among other neighborhoods in Bronx with $44.5 million in sales volume in the last two years. For development, University Heights has had very little major development activity relative to other neighborhoods.It had 780,676 square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 18 of the 38 commercial properties representing 547,375 square feet of the 960,843 square feet. The largest owner is Stagg Group, followed by Sharp Management and then Sam Jacobs.
On the tax block, there was one new building construction project filed totaling 8,311 square feet. It is a 12-unit, 8,311-square-foot R-2 building developed by Cezar Haxhari with plans filed June 28, 2019 and permitted March 8, 2021.

The majority, or 55 percent of the 960,843 square feet of built space are walkup buildings, with elevator buildings next occupying 41 percent of the space.

The borrower

The PincusCo database currently indicates that New Destiny Housing Corporation owned at least eight commercial properties in New York City with 173,399 square feet and a city-determined market value of $17.5 million. (Market value is typically about 50% of actual value.) The portfolio has $18.6 million in debt, with top three lenders as City of New York, Corporation for Supportive Housing, and 902 Jennings Street Owner LLC respectively. Within the portfolio, the bulk, or 81 percent of the 173,399 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 70 percent of the built space, is in Bronx, with Brooklyn next at 30 percent of the space.

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