Related signs $380M refi for Bronx Terminal Market mall in Concourse

Related Companies through the entity BTM Development Partners, LLC as borrower signed a refi loan with lender Deutsche Bank, Bank of America, Starwood Mortgage Capital, and Wells Fargo totaling $380 million for eight properties including the parking garage (G9) at 651 River Avenue, the retail building (K6) at 610 Exterior Street and the retail building (K6) at 700 Exterior Street in Concourse, Bronx.
The deal closed on August 6, 2024 and was recorded on August 23, 2024. The prior lender was COMM 2014-CCRE17 which held debt that had an original loan amount of $380 million.

The eight properties have 1,914,067 square feet of built space and 977,230 square feet of additional air rights for a total buildable of 2,728,470 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $198 and the price per buildable square foot is $139 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 Related Companies was David Zussman. The signatories for Deutsche Bank, Bank of America, Starwood Mortgage Capital, and Wells Fargo were David Goodman, Matt Smith, Grace Y. Chiang, and Steve Wasser. Deutsche Bank and Cantor Commercial Real Estate Lending originated the $380 million loan in 2014 and later securitized it into COMM 2014-CCRE17.

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 one DOB violation and $3,490 in OATH penalties in the last year.

The neighborhood

In Concourse, The bulk, or 46 percent of the 13.4 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 16 percent of the space. In sales, Concourse has had very little sales volume relative to other neighborhoods with $81.2 million in sales volume in the last two years. For development, Concourse has near average amount of major developments among other neighborhoods and is the 5th highest in Bronx. It had 1.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.

The block

On the tax block of 610 Exterior Street, PincusCo has identified the owners of five of the nine commercial properties representing 1,870,277 square feet of the 1,870,277 square feet. The identified owner is Related Companies.
There are no active new building construction projects on this tax block.

The majority, or 53 percent of the 1.9 million square feet of built space are retail buildings, with industrial buildings next occupying 47 percent of the space.

The borrower

The PincusCo database currently indicates that Related Companies owned at least 173 commercial properties with 9,277 residential units in New York City with 21,240,766 square feet and a city-determined market value of $6 billion. (Market value is typically about 50% of actual value.) The portfolio has $5.6 billion in debt, with top three lenders as Wells Fargo, Carlyle Group, and MetLife respectively. Within the portfolio, the bulk, or 44 percent of the 21,240,766 square feet of built space are elevator properties, with office properties next occupying 30 percent of the space. The bulk, or 61 percent of the built space, is in Manhattan, with Bronx next at 23 percent of the space.

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