REDA Group signs $7.2M refi with Alpine Capital Bank for hotel in Mott Haven

REDA Group through the entity 346 Grand A LLC as borrower signed a refi loan with lender Alpine Capital Bank through the entity Alpine Capital Bank valued at $7.2 million for the hotel building (H3) at 346 Grand Concourse in Mott Haven, Bronx.
The deal closed on August 15, 2022 and was recorded on September 2, 2022. The prior lender was Alpine Capital Bank which held debt that had an original loan amount of $6.1 million.The property has 22,274 square feet of built space and 1,800 square feet of additional air rights for a total buildable of 24,080 square feet according to PincusCo analysis of city data. The loan price per built square foot is $323 and the price per buildable square foot is $299 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 November 1, 2017, for $1.9 million. The signatory for REDA Group was Osher Niyazov.
REDA Group is not affiliated with another real estate company with a similar name, REDA Holdings.

Prior sales and revenue

The 22,274-square-foot property generated revenue of $2.2 million or $100 per square foot, according to the most recent income and expense figures.

The property

The 346 Grand Concourse parcel has frontage of 40 feet and is 100 feet deep with a total lot size of 4,000 square feet. The zoning is C6-2A which allows for up to 6 times floor area ratio (FAR) for commercial and up to 6.02 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.5 million.

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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 12, 2022. 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 Mott Haven, the bulk, or 42 percent of the 40.1 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 25 percent of the space. In sales, Mott Haven has 2.9 times the average sales volume among other neighborhoods with $980.2 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven is the 8th most active neighborhood among other neighborhoods. It had 5.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 15 commercial properties representing 217,410 square feet of the 287,540 square feet. The largest owner is Jacob Schwimmer, followed by Josue Velazquez and then Atlantic Development Group.
There are four active new building construction projects totaling 804,046 square feet. The largest is a 151-unit, 213,163-square-foot R-2 building developed by Simon Kaufman with plans filed March 28, 2019 and permitted December 14, 2020. The second largest is a 150-unit, 213,163-square-foot R-2 building developed by Simon Kaufman with plans filed March 28, 2019 and permitted August 30, 2021.

the majority, or 68 percent of the 287,540 square feet of built space are elevator buildings, with walkup buildings next occupying 14 percent of the space.

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