Promesa Foundation pays $2.8M for development in Mt Hope

Promesa Foundation through the entity Promesa Foundation Inc. paid $2.8 million to Shadan Harooni through the entity Eden Capital Group Inc. for development site (V0) at 1852 Anthony Avenue in Mt Hope, Bronx.
The deal closed on November 29, 2022 and was recorded on December 1, 2022. The property has zero square feet of built space and 27,932 square feet of additional air rights for a total buildable of 27,932 square feet according to PincusCo analysis of city data. The sale price per buildable square foot is $98 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 Shadan Harooni was Shadan Harooni.

Prior sales and revenue

Prior to this transaction, Pincusco has records that the buyer Promesa Foundation purchased one property in one transaction for a total of $3.2 million and has no record it sold any properties over the past 24 months.
The seller Shadan Harooni had not purchased any other properties and had not sold any properties over the same time period.

The property

The 1852 Anthony Avenue parcel has frontage of 82 feet and is 100 feet deep with a total lot size of 8,120 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 $522,000.

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 $300 in OATH penalties 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 Mt Hope, the majority, or 58 percent of the 11.1 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 28 percent of the space. In sales, Mt Hope has had very little sales volume relative to other neighborhoods with $87.2 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 791,748 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the nine commercial properties representing 89,353 square feet of the 150,379 square feet. The largest owner is Finkelstein Timberger East Real Estate, followed by Jericho Project and then David Somerstein.
There are no active new building construction projects on this tax block.

The majority, or 77 percent of the 150,379 square feet of built space are elevator buildings, with walkup buildings next occupying 18 percent of the space.

The seller

The PincusCo database currently indicates that Shadan Harooni owned at least one commercial property in New York City with 39,118 square feet and a city-determined market value of $3.2 million. (Market value is typically about 50% of actual value.) The portfolio has $10 million in debt, borrowed from Bethpage Commercial. The portfolio consists of at least a single specialty property. It is located in Bronx.

The buyer

The PincusCo database currently indicates that Promesa Foundation owned at least two commercial properties in New York City with 66,300 square feet and a city-determined market value of $4.8 million. (Market value is typically about 50% of actual value.) The portfolio has $11.2 million in debt, borrowed from Popular Bank. Within the portfolio, the bulk, or 77 percent of the 66,300 square feet of built space are elevator properties, with walkup properties next occupying 23 percent of the space. They are all located in Bronx.

Direct link to Acris document. link