Paradigm Management pays $6.8M to Madison Realty Capital for mixed-use in Tompkinsville

Paradigm Management through the entity Bay St. Development LLC paid $6.8 million to Madison Realty Capital through the entity Sdf12 Bay Street LLC for the mixed-use building (K6) at 364 Bay Street in Tompkinsville, Staten Island.
The deal closed on November 7, 2023 and was recorded on December 22, 2023. The property has 65,934 square feet of built space and 64,108 square feet of additional air rights for a total buildable of 129,820 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $102 and the price per buildable square foot is $51 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, 2006, for $3.3 million. The signatory for Madison Realty Capital was Brian Shatz. The contract date was July 10, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Paradigm Management had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Madison Realty Capital purchased 10 properties in five transactions for a total of $212.3 million and sold 13 properties in nine transactions for a total of $90.8 million over the same time period.

The property

The mixed-use building in Tompkinsville has 65,934 square feet of built space and 64,108 square feet of additional air rights for a total buildable of 129,820 square feet according to a PincusCo analysis of city data. The parcel has frontage of 125 feet and is 289 feet deep with a total lot size of 53,424 square feet. The lot is irregular. 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 $5.5 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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on December 16, 2014. On the lot, there is one active major alteration construction project for a 185-unit, 132,683 square-foot R-2 building. The project was submitted by Madison Realty Capital and filed by Zachary Kadden with plans filed April 15, 2022 and it has not been permitted yet.

The block

There are no active new building construction projects on this tax block.

The majority, or 84 percent of the 78,534 square feet of built space are mixed-use buildings, with office buildings next occupying 16 percent of the space.

The seller

The PincusCo database currently indicates that Madison Realty Capital owned at least 63 commercial properties with 2,654 residential units in New York City with 2,793,310 square feet and a city-determined market value of $381 million. (Market value is typically about 50% of actual value.) The portfolio has $1.2 billion in debt, with top three lenders as Signature Bank, MF1 Capital, and Athene Annuity And Life Company respectively. Within the portfolio, the bulk, or 75 percent of the 2,793,310 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 38 percent of the built space, is in Queens, with Brooklyn next at 32 percent of the space.

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