SNL Storage, Equity Resource sign $28.6M construction loan for storage development in Longwood

SNL Storage and Equity Resource Investments through the entity Snl Xxiv, LLC as borrower signed a new construction loan with lender Axos Bank through the entity Axos Bank valued at $28.6 million for the industrial building (E9) at 581 Austin Place in Longwood, Bronx.
The deal closed on May 25, 2022 and was recorded on June 30, 2022. The prior lender was Emerald Creek Capital which held debt that had an original loan amount of $7.1 million.The property has 49,629 square feet of built space and 84,908 square feet of additional air rights for a total buildable of 134,776 square feet according to PincusCo analysis of city data. The loan price per built square foot is $577 and the price per buildable square foot is $212 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 owner bought the property on February 24, 2021, for $11.8 million. The signatory for SNL Storage and Equity Resource Investments was Marc Sharinn. The representative individual for Axos Bank was Eshel Bar-Adon. The $7.08 million Emerald Creek Capital loan was paid off simultaneously with the new construction loan. Equity Resource Investments is identified in the loan document as an entity that should be noticed under Mortgagor.

The property

The 581 Austin Place parcel has frontage of 420 feet and is 100 feet deep with a total lot size of 67,388 square feet. The lot is irregular. The zoning is C8-3 which allows for up to 2 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $2.1 million.The most recent loan totaled $7.1 million and was provided by Emerald Creek Capital on February 24, 2021.

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 received one DOB violation, $6,250 in ECB penalties, and $6,250 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 110,411-square-foot S-1 building. The project was developed by Michael Jayne with plans filed May 1, 2020 and it has not been permitted yet.

The neighborhood

In Longwood, the bulk, or 36 percent of the 27.1 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 22 percent of the space. In sales, Longwood has had very little sales volume relative to other neighborhoods with $199.5 million in sales volume in the last two years. For development, Longwood has 3.8 times the average amount of major developments relative to other neighborhoods and is the 3rd highest in Bronx. It had 3.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of 14 of the 33 commercial properties representing 586,046 square feet of the 836,907 square feet. The largest owner is Lemle & Wolff, followed by Kalman Tabak and then SEBCO Development. There is one active new building construction project totaling 110,411 square feet. It is a 110,411-square-foot S-1 building developed by Michael Jayne with plans filed May 1, 2020 and it has not been permitted yet.

the majority, or 38 percent of the 853,271 square feet of built space are residential walkup buildings, with residential elevator buildings next occupying 27 percent of the space.

Surrounding

Within a 400-foot radius of 581 Austin Place, Pincusco identified one commercial real estate item of interests occurred over the past 24 months.
It was a loan which Kalman Tabak borrowed $18 million from Capital One secured by the 51,384-square-foot, 50-unit rental (D1) on 576 Timpson Place and two other properties on March 29, 2021.

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