SoBro pays $8.75M for four industrial properties in Morrisania
SoBro pays $8.75 million to two separate sellers for four industrial properties in Morrisania in two separate transactions.
In the first, SoBro also known as South Bronx Overall Economic Development Corporation through the entity Sobro Local Development Corporation paid $4.6 million to Joseph Maio through the entity Karen Realty Corp. for the industrial building (GU) at 1000 Brook Avenue in Morrisania, Bronx and industrial building (GU) at 996 Brook Avenue in Morrisania, Bronx.
The deal closed on April 3, 2023 and was recorded on April 17, 2023. The two properties have 2,550 square feet of built space and 10,416 square feet of additional air rights for a total buildable of 12,922 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,803 and the price per buildable square foot is $355 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 Joseph Maio was Joseph Maio. The signatory for SoBro and South Bronx Overall Economic Development Corporation was Delilah Tyson.
In the second, SoBro through the entity Sobro Local Development Corporation paid $4.2 million to Richard Pogostin through the entity Brook Webster Development Co., Inc. for the industrial building (G2) at 425 East 164th Street in Morrisania, Bronx and industrial building (G1) at 421 East 164th Street in Morrisania, Bronx. The deal closed on April 4, 2023 and was recorded on April 17, 2023. The two properties have 10,644 square feet of built space and 4,154 square feet of additional air rights for a total buildable of 14,750 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $389 and the price per buildable square foot is $281 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 Richard Pogostin was Richard Pogostin. The signatory for SoBro and South Bronx Overall Economic Development Corporation was Delilah Tyson. The contract date was May 10, 2022.
Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 1000 Brook Avenue.
Prior sales and revenue
Prior to this transaction, PincusCo has no record that the buyer SoBro had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Joseph Maio had not purchased any other properties and had not sold any properties over the same time period.
The property
The industrial building in Morrisania has 2,550 square feet of built space and 10,416 square feet of additional air rights for a total buildable of 12,922 square feet according to a PincusCo analysis of city data. The parcel has frontage of 79 feet and is 146 feet deep with a total lot size of 10,024 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $513,000.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $3,080 in OATH penalties 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 Morrisania, The majority, or 52 percent of the 25.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 20 percent of the space. In sales, Morrisania has had very little sales volume relative to other neighborhoods with $173.2 million in sales volume in the last two years. For development, Morrisania has had very little major development activity relative to other neighborhoods.It had 450,524 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. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.
The block
On the tax block of 1000 Brook Avenue, PincusCo has identified the owners of nine of the 27 commercial properties representing 183,952 square feet of the 269,736 square feet. The largest owner is Westrock Development, followed by Osei Bonsu Teddy and then L+M Development Partners.
There are no active new building construction projects on this tax block.
The majority, or 47 percent of the 269,736 square feet of built space are elevator buildings, with industrial buildings next occupying 46 percent of the space.
The buyer
The PincusCo database currently indicates that South Bronx Overall Economic Development Corporation owned at least 11 commercial properties with 157 residential units in New York City with 184,405 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $5.4 million in debt, borrowed from Raza Development Fund, Inc.. Within the portfolio, the bulk, or 75 percent of the 184,405 square feet of built space are walkup properties, with elevator properties next occupying 25 percent of the space. The bulk, or 72 percent of the built space, is in Manhattan, with Brooklyn next at 28 percent of the space.
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