Sherr Equities acquires Mt. Eden retail through foreclosure with $8.6M value

Former lender Sherr Equities through the entity 170th Street Partners LLC acquired title to the retail building (K1) at 151 East 170th Street in Mt Eden, Bronx, through a foreclosure process, with a transfer price of $8.6 million. The former owner was Norman Realty & Construction. The auction sale price was $7.5 million.
The deal closed on March 29, 2024 and was recorded on April 4, 2024. The property has 9,700 square feet of built space and 48,704 square feet of additional air rights for a total buildable of 58,406 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $881 and the price per buildable square foot is $146 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 Norman Realty & Construction was Edmond J. Pryor. The signatory for Sherr Equities was Harold Sherr. The contract date was February 5, 2024. Edmond J. Pryor was the referee for the foreclosure auction. 802734/2021E Sherr Equities provided a hard money loan on the property. The prior owner was Norman Realty & Construction which borrowed $5.6 million from Sherr Equities in February 2020.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Sherr Equities had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Norman Realty & Construction had not purchased any other properties and had not sold any properties over the same time period.

The property

The retail building in Mt Eden has 9,700 square feet of built space and 48,704 square feet of additional air rights for a total buildable of 58,406 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 98 feet deep with a total lot size of 9,702 square feet. The lot is irregular. The zoning is R8A which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.1 million. The most recent loan totaled $5.6 million and was provided by Sherr Equities on February 24, 2020.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

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 $84 million in sales volume in the last two years. For development, Mt Eden has had very little major development activity relative to other neighborhoods.It had 783,836 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 this tax block, PincusCo has identified the owners of two of the 12 commercial properties representing 53,740 square feet of the 281,456 square feet. The two identified owners are Norman Realty & Construction and Chestnut Holdings of New York.
There are no active new building construction projects on this tax block.

The majority, or 62 percent of the 281,456 square feet of built space are walkup buildings, with elevator buildings next occupying 33 percent of the space.

The seller

The PincusCo database currently indicates that Norman Realty & Construction owned at least one commercial property in New York City with 9,700 square feet and a city-determined market value of $3.1 million. (Market value is typically about 50% of actual value.) The portfolio has $5.6 million in debt, borrowed from Sherr Equities. The portfolio consists of at least a single retail property. It is located in Bronx.

Direct link to Acris document. link