Prestige Properties ups debt to $280M at Co-op City shopping center

Prestige Properties & Development, led by Sam Shalem and Irving Pergament, through the entity SP Center LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $280 million for two properties including the retail shopping center (K6) at 2100 Bartow Avenue in Co-op City, Bronx and retail building (K2) at 2134 Bartow Avenue in Co-op City, Bronx.
The deal closed on September 17, 2024 and was recorded on September 23, 2024. The prior lender was MetLife which held debt that had an original loan amount of $265 million.

The two properties have 566,555 square feet of built space and 2,548,624 square feet of additional air rights for a total buildable of 3,114,215 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $494 and the price per buildable square foot is $89 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 Prestige Properties & Development was Naor Shalem. The signatory for JPMorgan Chase was Jennifer R. Lewin.

Prior sales and revenue

The two properties with a total of 566,555 square feet of built space generated revenue of $33.5 million per year or $59 per square foot.

The property

The mixed-use building in Co-op City has 566,555 square feet of built space and 2,548,624 square feet of additional air rights for a total buildable of 3,114,215 square feet according to a PincusCo analysis of city data. The parcel has frontage of 1,133 feet and is 1,071 feet deep with a total lot size of 1,266,128 square feet. The lot is irregular. The zoning is C4-3 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $156.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $25,575 in OATH penalties in the last year.

Development

For the tax lot buildings, two out of the two buildings received a initial certificate of occupancy in the last ten years. 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 Co-op City, The bulk, or 33 percent of the 6.9 million square feet of commercial built space are mixed-use buildings, with industrial buildings next occupying 24 percent of the space. In sales, Co-op City has not had any sales in the last two years. For development, Co-op City has had very little major development activity relative to other neighborhoods.It had 49,497 square feet of commercial and multi-family construction under development in the last two years, which represents 0.71 percent of the neighborhood’s built space.

The block

On the tax block of 2100 Bartow Avenue, PincusCo has identified the owners of 22 of the 56 commercial properties representing 3,845,962 square feet of the 6,562,789 square feet. The largest owner is City Of New York, followed by Co-Op City and then Prestige Properties And Development.
On the tax block, there were five new building construction projects totaling 111,586 square feet. The largest is a 53,698 square-foot business (B) building submitted by Simone Development Companies and filed by Joseph Simone with plans filed September 14, 2018 and permitted February 18, 2020. The second largest is a 49,497 square-foot business (B) building submitted by NYC Department of Health and Mental Hygiene and filed by Sheila Benjamin with plans filed October 25, 2021 and permitted December 30, 2022.

The majority, or 29 percent of the 6.6 million square feet of built space are mixed-use buildings, with specialty buildings next occupying 27 percent of the space.

The borrower

The PincusCo database currently indicates that Prestige Properties & Development owned at least five commercial properties in New York City with 123,629 square feet and a city-determined market value of $30 million. (Market value is typically about 50% of actual value.) The portfolio has $31 million in debt, borrowed from BankUnited. Within the portfolio, all identified are retail properties. They are all located in Bronx.

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