Seton Education Partners signs $9M construction loan with Webster Bank in Mott Haven
Seton Education Partners through the entity SEP Pius, LLC as borrower signed a new construction loan with lender Webster Bank valued at $9 million for two specialty properties including the specialty building (M1) at 416 East 145th Street in Mott Haven, Bronx and specialty building (M4) at 414 East 145th Street in Mott Haven, Bronx.
The deal closed on October 20, 2022 and was recorded on October 25, 2022. The two properties have 17,548 square feet of built space and 2,408 square feet of additional air rights for a total buildable of 18,608 square feet according to PincusCo analysis of city data. The loan price per built square foot is $512 and the price per buildable square foot is $483 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 Seton Education Partners was Matthew Salvatierra. The developer simultaneously signed a lease as landlord with the Brilla College Preparatory Charter Schools as tenant.
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 416 East 145th Street.
The property
The 416 East 145th Street parcel has frontage of 56 feet and is 100 feet deep with a total lot size of 5,600 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $601,000.
Violations and lawsuits
The properties were involved in one court filing and zero bankruptcies over the past two years. The court filing was a $1.8 million petition seeking a leave to sell filed on April 4, 2022, by the Roman Catholic Church Of Saint Rita Of Cascia And Saint Pius V, seeking to sell to the Seton Education Partners. In addition, according to city public data, the properties have received $50 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 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 2.3 times the average sales volume among other neighborhoods with $813.2 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven is the 10th most active neighborhood among other neighborhoods. It had 4.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.
The block
On the tax block of 416 East 145th Street, PincusCo has identified the owners of one of the five commercial properties representing 30,000 square feet of the 60,579 square feet. The identified owner is Centric New York.
There are no active new building construction projects on this tax block.
The majority, or 84 percent of the 60,579 square feet of built space are specialty buildings, with walkup buildings next occupying 11 percent of the space.
The borrower
The PincusCo database currently indicates that Seton Education Partners owned at least one commercial property in New York City with 70,523 square feet and a city-determined market value of $12.4 million. (Market value is typically about 50% of actual value.) The portfolio has $22 million in debt, borrowed from Civic Builders and Build NYC Resource Corporation. The portfolio consists of at least a single M1 property. It is located in Bronx.
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