Stagg Group signs $14.9M new construction loan with Webster Bank for dev site in Bronx

Stagg Group through the entity 3190 Webster Avenue Associates LLC as borrower signed a new construction loan with lender Webster Bank valued at $14.9 million for the midblock dev site at 3184 Webster Avenue in Bronx.
The deal closed on February 15, 2022 and was recorded on March 7, 2022. The prior lender was Signature Bank which held debt that had an original loan amount of $1.4 million. The property has 1,456 square feet of built space and 35,093 square feet of additional air rights for a total buildable of 36,573 square feet according to PincusCo analysis of city data. The loan price per buildable square foot is $369 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 December 10, 2020, for $2.8 million. The signatory for Stagg Group was Mark Stagg. The signatory for Webster Bank was John Vitale.

The property

The 3184 Webster Avenue parcel has frontage of 100 feet and is 86 feet deep with a total lot size of 8,708 square feet. The lot is irregular. The zoning is R7D which allows for up to 4.2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $367,000.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $2,500 in ECB penalties and $2,500 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 70-unit, 46,992-square-foot R-2 building. The project was developed by the Stagg Group with plans filed December 24, 2020 and it has not been permitted yet.

The block

On this tax block, PincusCo has identified the owners of five of the 35 commercial properties representing 42,930 square feet of the 541,238 square feet. The largest owner is Surjeet Kaur, followed by Chris Palladino and then Stagg Group. There are six active new building construction projects totaling 185,324 square feet. The largest is a 60-unit, 65,087-square-foot R-2 building developed by Guido Subotovsky with plans filed August 19, 2013 and permitted April 17, 2015. The second largest is a 70-unit, 46,992-square-foot R-2 building developed by the Stagg Group with plans filed December 24, 2020 and it has not been permitted yet.

The majority, or 22 percent of the 299,313 square feet of built space are specialty buildings, with hotel buildings next occupying 21 percent of the space.

The borrower

The PincusCo database currently indicates that Stagg Group owned at least 135 commercial properties with 902,688 square feet and a city-determined market value of $149.8 million. (Market value is typically about 50% of actual value.) The portfolio has $382.3 million in debt, with top three lenders as Berkadia Commercial Mortgage, Valley National Bank, and Sterling National Bank respectively. Within the portfolio, the bulk, or 49 percent of the 902,688 square feet of built space are residential elevator properties, with 1-4 family properties next occupying 24 percent of the space. They are all located in Bronx.

Surrounding

Within a 400-foot radius of 3184 Webster Avenue, Pincusco identified one commercial real estate item of interests occurred over the past 24 months.
It was a new building permit issued on August 27, 2020 for a 28,410-square-foot R-1 building with 90 residential units at 3300 Webster Avenue.

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