Paul, Vincens Gjonaj pay $15.7M to Scharfman Org. for 125-unit rental in Morris Park owned for about 50 years

Paul Gjonaj and Vincens Gjonaj through the entity 1541 Williamsbridge Partners LLC paid $15.7 million to the Scharfman Organization through the entity 1541 Williamsbridge Realty LLC for the 125-unit residential elevator building (D3) at 1541 Williamsbridge Road in Morris Park, Bronx. The expected use is cash flowing. Mark Scharfman has had an ownership in the building since at least the mid 1970s, according to city records
The deal closed on October 23, 2024 and was recorded on October 28, 2024. The property has 107,340 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $146 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 Scharfman Organization was Mark Scharfman. The signatory for Paul Gjonaj and Vincens Gjonaj was Paul Gjonaj. The contract date was July 18, 2024.
The buyers financed the purchase with an $11.77 million loan from Orange Bank & Trust Company. The prior debt was $6 million.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Paul Gjonaj had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Scharfman Organization had not purchased any other properties and sold one property in one transaction for a total of $9.3 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Mark Scharfman, head officer and Dio Delrosario, site manager. The business entity is 1541 Williams Bridge Realty Llc. The 107,340-square-foot property generated revenue of $2.2 million or $20 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 125 residential units in Morris Park has 107,340 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 287 feet and is 92 feet deep with a total lot size of 27,475 square feet. The lot is irregular. The zoning is R4 which allows for up to 0.75 times floor area ratio (FAR) for residential. The property has a J-51 exemption that started in 2020 and expires in 2054. The city-designated market value for the property in 2022 is $8.9 million. The most recent loan totaled $6 million and was provided by JPMorgan Chase on May 6, 2022. The property has 125 rent regulated units according to city tax records from 2023.

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 83 housing violations, $450 in OATH penalties, and two housing litigations 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 two of the four commercial properties representing 188,840 square feet of the 209,490 square feet. The two identified owners are Louis Malone and Jrc Management.
There are no active new building construction projects on this tax block.

The majority, or 90 percent of the 209,490 square feet of built space are elevator buildings, with specialty buildings next occupying 7 percent of the space.

The seller

The PincusCo database currently indicates that Scharfman Organization owned at least 132 commercial properties with 3,938 residential units in New York City with 3,157,263 square feet and a city-determined market value of $659.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 70 percent of the 3,157,263 square feet of built space are elevator properties, with walkup properties next occupying 29 percent of the space. The bulk, or 79 percent of the built space, is in Manhattan, with Brooklyn next at 10 percent of the space.

The buyer

The PincusCo database currently indicates that Vincens Gjonaj owned at least five commercial properties with 368 residential units in New York City with 362,119 square feet and a city-determined market value of $15.9 million. (Market value is typically about 50% of actual value.) The portfolio has $35.9 million in debt, with top three lenders as New York Community Bank, Peapack-Gladstone Bank, and Arbor Realty Trust respectively. Within the portfolio, all identified are elevator properties. They are all located in Bronx.
The PincusCo database currently indicates that Paul Gjonaj owned at least three commercial properties with 64 residential units in New York City with 91,033 square feet and a city-determined market value of $7.8 million. (Market value is typically about 50% of actual value.) The portfolio has $22.4 million in debt, borrowed from Orange Bank & Trust Company and Northeast Community Bank. Within the portfolio, the bulk, or 52 percent of the 91,033 square feet of built space are elevator properties, with N9 properties next occupying 26 percent of the space. They are all located in Bronx.

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