Simone Development signs $77M refi with Union Labor for Montefiore building in Pelham Bay

Simone Development Companies through the entity Hutch Tower One LLC as borrower signed a refi loan with lender Union Labor Life Insurance Company valued at $77 million for the office condo at 1250 Waters Place in Pelham Bay, Bronx.
The deal closed on April 29, 2022 and was recorded on May 17, 2022. The prior lender was Series 2021-C7 which held debt that had an original loan amount of $68 million.The property has 480,600 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $160 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 Simone Development Companies was Joseph Simone. The signatory for Union Labor Life Insurance Company was Donita M. Johnson. The property is occupied by Montefiore Medical Center’s Hutchinson Campus.

The property

The 1250 Waters Place parcel has a total lot size of 480,600 square feet. The city-designated market value for the property in 2022 is $98.9 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 July 19, 2012. 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 Pelham Bay, the bulk, or 27 percent of the 11.3 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 22 percent of the space. In sales, Pelham Bay has the 32nd highest sale turnover among other neighborhoods in Bronx with $21.3 million in sales volume in the last two years. For development, Pelham Bay has had very little major development activity relative to other neighborhoods.It had 243,263 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 34 commercial properties representing 1,878,129 square feet of the 4,656,187 square feet. The largest owner is City of New York, followed by Simone Development Companies and then Realterm. There are five active new building construction projects totaling 3,873,338 square feet. The largest is a 1,812,499-square-foot S-2 building developed by Joseph Kelleher with plans filed December 27, 2012 and permitted July 25, 2013. The second largest is a 1,686,791-square-foot S-2 building developed by Joseph Simone with plans filed July 18, 2012 and permitted March 26, 2013.

The majority, or 56 percent of the 3.6 million square feet of built space are specialty buildings, with industrial buildings next occupying 28 percent of the space.

Surrounding

Within a 400-foot radius of 1250 Waters Place, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was a loan which Realterm borrowed $72.5 million from Regions Bank secured by the 285,630-square-foot, one-unit industrial (E1) on 1502 Bassett Avenue and two other properties on July 17, 2020.

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