Note buyer acquires 35-unit walkup in Melrose through foreclosure

The note buyer JY Capital Group through the entity JY Citizen L.P. acquired the 35-unit residential walkup building (C1) at 333 East 150th Street in Melrose, Bronx. The expected use is cash flowing. JY Citizen L.P. made a credit bid of $1,000 on a judgment of $5 million resulting from a defaulted $2.87 million loan. The prior owner was Earl L. Bailey Jr. whose interest was foreclosed.
The deal closed on July 3, 2024 and was recorded on August 12, 2024. The property has 20,570 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $243 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 Earl L. Bailey Jr. was attorney Jeffrey Dinowitz. The signatory for JY Capital Group was attorney Aviva Francis. The contract date was July 3, 2024. Jeffrey Dinowitz is the referee in the foreclosure sale, 36043/2020E in Bronx County.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer JY Capital Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Earl L. Bailey Jr. had not purchased any other properties and had not sold any properties over the same time period. The former owner according to the Department of Housing Preservation and Development is Earl Bailey, head officer. The business entity is 333 E 150 St Llc.

The property

The residential walkup building with 35 residential units in Melrose has 20,570 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 118 feet deep with a total lot size of 5,919 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 $1.5 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 four DOB violations, $13,810 in ECB penalties, 130 housing violations, and $16,815 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 owners of five of the 29 commercial properties representing 33,928 square feet of the 203,265 square feet. The largest owner is Consolidated Edison, followed by Deewan Singh and then Eran Tourgeman.
On the tax block, there was one new building construction project filed totaling 6,400 square feet. It is a eight-unit, 6,400 square-foot residential (R-2) building submitted by Mario Procida with plans filed April 25, 2018 and it has not been permitted yet.

The majority, or 59 percent of the 203,265 square feet of built space are walkup buildings, with specialty buildings next occupying 23 percent of the space.

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