Pale Cotaj pays $6.2M to Morgan Group for 49-unit rental in Wakefield

Pale Cotaj through the entity 4254 Carpenter Realty LLC paid $6.2 million to Morgan Group through the entity 4254 Carpenter Ave LLC for the 49-unit residential elevator building (D1) at 4254 Carpenter Avenue in Wakefield, Bronx.
The deal closed on June 13, 2023 and was recorded on June 21, 2023. The property has 42,294 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $147 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 seller bought the property on July 17, 2013, for $4.9 million. The signatory for Morgan Group was Scott Morgan. The signatory for Pale Cotaj was Pale Cotaj.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Pale Cotaj had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Morgan Group had not purchased any other properties and sold 13 properties in 10 transactions for a total of $67.7 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Ryan Morgan, head officer and Brooke Morgan, shareholder. The business entities are The Morgan Group Llc and 4254 Carpenter Ave Llc. The 42,294-square-foot property generated revenue of $705,913 or $17 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 49 residential units in Wakefield has 42,294 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 80 feet and is 114 feet deep with a total lot size of 9,046 square feet. The zoning is R5A which allows for up to 1.1 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.5 million. The most recent loan totaled $5.9 million and was provided by New York Community Bank on December 22, 2020.

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 46 housing violations and $50 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 one of the four commercial properties representing 42,294 square feet of the 105,366 square feet. The identified owner is Morgan Group.
There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 105,366 square feet of built space are walkup buildings, with elevator buildings next occupying 40 percent of the space.

The seller

The PincusCo database currently indicates that Morgan Group owned at least 29 commercial properties with 1,448 residential units in New York City with 1,495,975 square feet and a city-determined market value of $88.3 million. (Market value is typically about 50% of actual value.) The portfolio has $164 million in debt, borrowed from Morgan Stanley and New York Community Bank. Within the portfolio, the bulk, or 65 percent of the 1,495,975 square feet of built space are elevator properties, with walkup properties next occupying 35 percent of the space. They are all located in Bronx.

The buyer

The PincusCo database currently indicates that Pale Cotaj owned at least four commercial properties with 144 residential units in New York City with 150,894 square feet and a city-determined market value of $5.4 million. (Market value is typically about 50% of actual value.) The portfolio has $7.5 million in debt, borrowed from JPMorgan Chase. Within the portfolio, the bulk, or 83 percent of the 150,894 square feet of built space are walkup properties, with elevator properties next occupying 17 percent of the space. They are all located in Bronx.

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