Simone Development signs $85M refi with Union Labor Life for office in Pelham Bay

Simone Development Companies through the entity Hutch Tower Two Owner LLC as borrower signed a refi loan with lender Union Labor Life Insurance Company valued at $85 million for the office condo at 1250 Waters Place in Pelham Bay, Bronx.
The deal closed on September 27, 2024 and was recorded on October 3, 2024. The prior lender was Series 2014-C24 which held debt that had an original loan amount of $80.5 million.The property has 262,716 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $323 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 Jonathan McKetney.

The property

The office condo in Pelham Bay has 262,716 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 262,716 square feet. The city-designated market value for the property in 2022 is $60.4 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has not received any significant violations in the last year.

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 Pelham Bay, The bulk, or 27 percent of the 6.8 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 23 percent of the space. In sales, Pelham Bay has had very little sales volume relative to other neighborhoods with $82.7 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 215,238 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 12 of the 33 commercial properties representing 917,594 square feet of the 3,871,107 square feet. The largest owner is City Of New York, followed by Realterm and then Simone Development Companies.
On the tax block, there was one new building construction project filed totaling 18,619 square feet. It is a 18,619 square-foot storage (S-1) building submitted by Donald Engels with plans filed September 25, 2018 and it has not been permitted yet.

The majority, or 58 percent of the 3.9 million square feet of built space are specialty buildings, with industrial buildings next occupying 28 percent of the space.

The borrower

The PincusCo database currently indicates that Simone Development Companies owned at least 20 commercial properties in New York City with 310,515 square feet and a city-determined market value of $45.4 million. (Market value is typically about 50% of actual value.) The portfolio has $283.4 million in debt, with top three lenders as Bank of America, Union Labor Life Insurance Company, and Metropolitan Commercial Bank respectively. Within the portfolio, the bulk, or 45 percent of the 310,515 square feet of built space are industrial properties, with retail properties next occupying 24 percent of the space. They are all located in Bronx.

Direct link to Acris document. https://a836-acris.nyc.gov/bblsearch/bblsearch.asp?borough=2&block=04226&lot=1002” target=”_blank”>link