SKF Development signs $17.9M construction loan for 88-unit dev site in Bedford Park

SKF Development gets construction loan at 193 East 205th Street (Credit - Google)

SKF Development gets construction loan at 193 East 205th Street (Credit - Google)

SKF Development through the entity 189 & 193 E. 205th Realty, LLC as borrower signed a new construction loan with lender Valley National Bank valued at $17.9 million for the 88-unit development site at 189-193 East 205th Street in Bedford Park, Bronx.

Plans for an 88-unit, 48,731 square-foot residential (R-2) building were submitted by Richard Hertz on February 23, 2021 and permitted November 3, 2022.
The loan closed on February 27, 2023 and was recorded on March 3, 2023. The prior lender was Metropolitan Commercial Bank which held debt that had an original loan amount of $2.3 million. ce 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 owner bought at least one of the parcels making up the property on February 26, 2021, for $1.3 million. The signatory for SKF Development was Robert J. Teitelbaum. This project is on tax lot 53 which was merged with tax lot 51.

The property

The 189-193 E 205th Street parcel has frontage of 26 feet and is 134 feet deep with a total lot size of 3,495 square feet. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $646,000.

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.

The block

On this tax block, PincusCo has identified the owners of six of the 16 commercial properties representing 165,319 square feet of the 333,308 square feet. The largest owner is SKF Development, followed by Richard Sica and then Pale Cotaj.
On the tax block, there were two new building construction projects totaling 88,697 square feet. The largest is a 88-unit, 48,731-square-foot R-2 building developed by Richard Hertz with plans filed February 23, 2021 and permitted November 3, 2022. The second largest is a 64-unit, 39,966-square-foot R-2 building developed by Amanda Hugenkiss with plans filed February 26, 2021 and permitted November 3, 2022.

The majority, or 52 percent of the 333,308 square feet of built space are elevator buildings, with walkup buildings next occupying 46 percent of the space.

The borrower

The PincusCo database currently indicates that SKF Development owned at least eight commercial properties in New York City with 251,568 square feet and a city-determined market value of $24 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 251,568 square feet of built space are elevator properties, with development properties next occupying 0 percent of the space. They are all located in Bronx.

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