Procida Companies signs $47.8M construction loan with Webster Bank for 103-unit development in Mt Hope

Procida Companies through the entity MHSP Walter Owner LLC as borrower signed a new construction loan with lender Webster Bank valued at $47.8 million for the midblock development building at 1761 Walton Avenue in Mt Hope, Bronx. Procida filed plans for a 103-unit project at the parcel.
The deal closed on April 6, 2022 and was recorded on April 19, 2022. The prior lender was Raza Development Fund, Inc. which held debt that had an original loan amount of $4.4 million.The property has zero square feet of built space and 75,250 square feet of additional air rights for a total buildable of 75,250 square feet according to PincusCo analysis of city data. The loan price per buildable square foot is $635 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 February 11, 2015, for $1.7 million. The signatory for Procida Companies was Mario Procida. The Mount Hope Housing Company provided an additional $404,643.

The property

The 1761 Walton Avenue parcel has frontage of 125 feet and is 100 feet deep with a total lot size of 12,500 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $889,000.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $3,210 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 103-unit, 126,199-square-foot R-2 building. The project was developed by Mario Procida with plans filed February 23, 2017 and it has not been permitted yet.

The neighborhood

In Mt Hope, the majority, or 53 percent of the 12.5 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 25 percent of the space. In sales, Mt Hope has had very little sales volume relative to other neighborhoods with $60.5 million in sales volume in the last two years. For development, Mt Hope has had very little major development activity relative to other neighborhoods.It had 734,472 square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 15 commercial properties representing 190,343 square feet of the 431,971 square feet. The largest owner is Finkelstein, Timberger, East Real Estate, followed by Anthony Pistilli and then Mount Hope Housing Company. There is one active new building construction project totaling 126,199 square feet. It is a 103-unit, 126,199-square-foot R-2 building developed by Mario Procida with plans filed February 23, 2017 and it has not been permitted yet.

The majority, or 46 percent of the 478,911 square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 28 percent of the space.

Surrounding

Within a 400-foot radius of 1761 Walton Avenue, PincusCo identified seven commercial real estate items of interests occurred over the past 24 months.
One of those seven items was a sale which Neighborhood Restore HDFC bought the 34,005-square-foot, 45-unit rental (C7) on 1857 Walton Avenue for $6.7 million from Blackshore Realty Group on July 13, 2021.
Of those seven items, six were loans above $5 million totaling $229.2 million. The most recent of the six was Genesis Realty Group which borrowed $5.1 million from Signature Bank secured by the 37,428-square-foot, 43-unit rental (D1) on 1764 Walton Avenue on January 6, 2022.

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