Phipps Houses pays $3.5M for likely dev site in Belmont, owns adjacent parcel

Phipps Houses through the entity East 182 Street Associates, LLC paid $3.5 million to Joseph Daniel Zola through the entity 800 East 182nd Street Corp. for the mixed-use building (K1) at 800 East 182nd Street in Belmont, the Bronx. Phipps Houses bought the neighboring parcel in 2021 for $3 million, and now controls the entire 170 feet along East 182nd Street.
The deal closed on July 13, 2023 and was recorded on July 26, 2023. The property has 5,770 square feet of built space and 14,078 square feet of additional air rights for a total buildable of 19,848 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $606 and the price per buildable square foot is $176 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 December 30, 2011, for $650,000. The signatory for Joseph Daniel Zola was Joseph Daniel Zola. The signatory for Phipps Houses was Matthew Kelly.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Phipps Houses purchased 22 properties in 10 transactions for a total of $78.5 million and sold one property in one transaction for a total of $13.5 million over the past 24 months.
The seller Joseph Daniel Zola had not purchased any other properties and had not sold any properties over the same time period. The 5,770-square-foot property generated revenue of $164,092 or $28 per square foot, according to the most recent income and expense figures.

The property

The mixed-use building in Belmont/Little Italy has 5,770 square feet of built space and 14,078 square feet of additional air rights for a total buildable of 19,848 square feet according to a PincusCo analysis of city data. The parcel has frontage of 86 feet and is 70 feet deep with a total lot size of 5,770 square feet. The lot is irregular. 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 $976,000.

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

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Belmont/Little Italy, The bulk, or 43 percent of the 14.3 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 26 percent of the space. In sales, Belmont/Little Italy has had very little sales volume relative to other neighborhoods with $254.7 million in sales volume in the last two years. For development, Belmont/Little Italy has had very little major development activity relative to other neighborhoods.It had 771,705 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 14 commercial properties representing 367,693 square feet of the 437,699 square feet. The largest owner is Phipps Houses, followed by LIHC Investment Group and then Fordham Bedford Housing Corporation.
There are no active new building construction projects on this tax block.

The majority, or 54 percent of the 437,699 square feet of built space are elevator buildings, with walkup buildings next occupying 42 percent of the space.

The buyer

The PincusCo database currently indicates that Phipps Houses owned at least 91 commercial properties with 5,620 residential units in New York City with 5,735,837 square feet and a city-determined market value of $536.3 million. (Market value is typically about 50% of actual value.) The portfolio has $1.2 billion in debt, with top three lenders as NYC Housing Development Corporation, Citibank, and City of New York respectively. Within the portfolio, the bulk, or 70 percent of the 5,735,837 square feet of built space are elevator properties, with walkup properties next occupying 16 percent of the space. The bulk, or 47 percent of the built space, is in Bronx, with Manhattan next at 34 percent of the space.

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