Rajive Maret pays $4.5M to CloudKitchens for industrial in Mt Eden

Rajive Maret through the entity Cromwell Inwood, LLC paid $4.5 million to CloudKitchens through the entity 1414-1424 Cromwell Ave Brx LLC for the industrial building (E9) at 1414 Cromwell Avenue in Mt Eden, Bronx.
The deal closed on October 10, 2023 and was recorded on October 18, 2023. The property has 25,392 square feet of built space and 1,339 square feet of additional air rights for a total buildable of 26,788 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $178 and the price per buildable square foot is $168 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 February 17, 2021, for $4.3 million. The signatory for CloudKitchens was Mark Morkos. The signatory for Rajive Maret was Rajive Maret. The contract date was July 25, 2023. The Financial Times reported last month that CloudKitchens laid off staff amid “low occupancy” of its buildings.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Rajive Maret had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller CloudKitchens had not purchased any other properties and sold one property in one transaction for a total of $2.2 million over the same time period.

The property

The industrial building in Mt Eden has 25,392 square feet of built space and 1,339 square feet of additional air rights for a total buildable of 26,788 square feet according to a PincusCo analysis of city data. The parcel has frontage of 150 feet and is 91 feet deep with a total lot size of 13,394 square feet. The lot is irregular. The zoning is C8-3 which allows for up to 2 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $1.2 million. The most recent loan totaled $7.2 million and was provided by Goldman Sachs on June 25, 2021.

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 two DOB violations in the last year.

Development

On the lot, there is one active major alteration construction project for a 25,000 square-foot F-2 building. The project was submitted by Matt Phillips with plans filed May 3, 2021 and it has not been permitted yet.

The neighborhood

In Mt Eden, The majority, or 51 percent of the 10.3 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 27 percent of the space. In sales, Mt Eden has had very little sales volume relative to other neighborhoods with $94.3 million in sales volume in the last two years. For development, Mt Eden has near average amount of major developments among other neighborhoods and is the 7th highest in Bronx. It had 879,361 square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 18 commercial properties representing 99,770 square feet of the 457,235 square feet. The largest owner is Michael Goff, followed by Family Life Academy Charter Schools and then Atlantic Development Group.
On the tax block, there were two new building construction projects totaling 131,141 square feet. The largest is a 67,916 square-foot educational (E) building submitted by Highmark School Development and filed by Tamela Sweeris with plans filed December 18, 2020 and permitted July 21, 2021. The second largest is a 63,225 square-foot educational (E) building submitted by Atlantic Development Group and filed by Peter Fine with plans filed February 11, 2021 and permitted August 18, 2021.

The majority, or 53 percent of the 457,235 square feet of built space are industrial buildings, with walkup buildings next occupying 19 percent of the space.

The buyer

The PincusCo database currently indicates that Rajive Maret owned at least two commercial properties with five residential units in New York City with 4,350 square feet and a city-determined market value of $2.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 4,350 square feet of built space are mixed-use properties, with industrial properties next occupying 0 percent of the space. They are all located in Bronx.

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