Parkoff signs $47.5M refi loan with New York Community for 347 units in Pelham Parkway

The Parkoff Organization signed two loans for a total of $47.5 million in a refinance with New York Community covering two buildings with a total of 347 units in Pelham Parkway, the Bronx.

In the first, the Parkoff Organization through the entity 2132 Presidential Assets LLC as borrower signed a refi loan with lender New York Community Bank valued at $24.8 million for the 172-unit residential elevator building (D7) at 2132 Wallace Avenue in Pelham Parkway, Bronx.
The deal closed on July 7, 2022 and was recorded on July 13, 2022. The prior lender was New York Community Bank which held debt that had an original loan amount of $24.4 million.The property has 175,806 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $141 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 owner bought the property on December 13, 2012, for $23 million. The signatory for Parkoff Organization was Adam L. Parkoff. The signatory for New York Community Bank was Daniel M. Bagatta.

In the second, the Parkoff Organization through the entity 2131 Presidential Assets LLC as borrower signed a refi loan with lender New York Community Bank valued at $22.7 million for the 175-unit residential elevator building (D7) at 2131 Wallace Avenue in Pelham Parkway, Bronx. The deal closed on July 7, 2022 and was recorded on July 13, 2022. The prior lender was New York Community Bank which held debt that had an original loan amount of $24 million.The property has 178,126 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $127 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 owner bought the property on December 13, 2012, for $23 million. The signatory for Parkoff Organization was Adam L. Parkoff. The signatory for New York Community Bank was Daniel M. Bagatta.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes A. Richard Parkoff, head officer and Allison Anderson, officer. The business entities are 2132 Presidential Assets and 2132 Presidential Assets, Llc. The 175,806-square-foot property generated revenue of $3.1 million or $18 per square foot, according to the most recent income and expense figures.

The property

The 2132 Wallace Avenue parcel has frontage of 235 feet and is 200 feet deep with a total lot size of 47,000 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 $7.9 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 one DOB violation, $625 in ECB penalties, 61 housing violations, $3,945 in OATH penalties, and one housing litigation 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 Pelham Parkway, the majority, or 87 percent of the 7.9 million square feet of commercial built space are residential elevator buildings, with specialty buildings next occupying 5 percent of the space. In sales, Pelham Parkway has the 43rd highest sale turnover among other neighborhoods in Bronx with $8 million in sales volume in the last two years. For development, Pelham Parkway has had very little major development activity relative to other neighborhoods.It had 224,758 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the two commercial properties representing 175,806 square feet of the 350,206 square feet. The identified owner is Parkoff Organization. There are no active new building construction projects on this tax block.

All properties are residential elevator.

The borrower

The PincusCo database currently indicates that Parkoff Organization owned at least 69 commercial properties in New York City with 4,406,094 square feet and a city-determined market value of $374 million. (Market value is typically about 50% of actual value.) The portfolio has $384.7 million in debt, with top three lenders as New York Community Bank, Signature Bank, and Esquire Bank respectively. Within the portfolio, the bulk, or 91 percent of the 4,406,094 square feet of built space are elevator properties, with walkup properties next occupying 6 percent of the space. The bulk, or 31 percent of the built space, is in Bronx, with Manhattan next at 30 percent of the space.

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