Sandra Erickson Real Estate signs $28.6M construction loan for affordable projects in Bronx

Sandra Erickson Real Estate through the entity Morris Heights NCP LLC as borrower signed a new construction loan with lender Webster Bank valued at $28.6 million for four development properties including the development building (V0) at 2275 Loring Place North in University Heights, Bronx, development building (V0) at 1647 Popham Avenue in Morris Heights, Bronx, and development building (V0) at 30 West 182nd Street in University Heights, Bronx.
The deal closed on August 24, 2023 and was recorded on September 8, 2023. The four properties have zero square feet of built space and 40,638 square feet of additional air rights for a total buildable of 40,638 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $N/A and the price per buildable square foot is $704 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 Sandra Erickson Real Estate was Joshua Weissman. The signatory for Webster Bank was Glenn P. Lunde.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 2275 Loring Place North.

The property

The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 5,008 square feet. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $486,000.

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 $1,250 in OATH penalties in the last year.

Development

On these lots, there are four active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 36,894 square feet. The largest is a new building project for a 17-unit, 16,693 square-foot R-2 building submitted by NYC Department of Housing Preservation and Development and filed by Rona Reodica with plans filed January 31, 2023 and it has not been permitted yet. The second largest is a new building project for a 11-unit, 8,498 square-foot R-2 building submitted by NYC Department of Housing Preservation and Development and filed by Rona Reodica with plans filed January 30, 2023 and it has not been permitted yet.

The neighborhood

In University Heights, The bulk, or 41 percent of the 9.9 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 36 percent of the space. In sales, University Heights has the 37th highest sale turnover among other neighborhoods in Bronx with $24 million in sales volume in the last two years. For development, University Heights has had very little major development activity relative to other neighborhoods.It had 745,994 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 2275 Loring Place North, PincusCo has identified the owners of 18 of the 38 commercial properties representing 597,237 square feet of the 1,010,705 square feet. The largest owner is Stagg Group, followed by Sharp Management and then Sam Jacobs.
On the tax block, there was one new building construction project filed totaling 6,099 square feet. It is a six-unit, 6,099 square-foot residential (R-2) building submitted by Salvatore D’Avola with plans filed February 9, 2023 and it has not been permitted yet.

The majority, or 53 percent of the 1 million square feet of built space are walkup buildings, with elevator buildings next occupying 44 percent of the space.

The borrower

The PincusCo database currently indicates that Sandra Erickson Real Estate owned at least three commercial properties with 79,386 square feet, 100 residential units and a city-determined market value of $4.3 million. (Market value is typically about 50% of actual value.) The portfolio has $26.5 million in debt, borrowed from Webster Bank. Within the portfolio, the bulk, or 81 percent of the 79,386 square feet of built space are C6 properties, with walkup properties next occupying 19 percent of the space. They are all located in Bronx.

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