Stagg Group signs $16.8M refi with Berkadia for 72-unit rental in West Farms

Stagg Group through the entity 915 Elsmere Place Bronx Associates LLC as borrower signed a refi loan with lender Berkadia Commercial Mortgage through the entity Berkadia Commercial Mortgage LLC valued at $16.8 million for the 72-unit residential elevator building (D7) at 915 Elsmere Place in West Farms, Bronx.
The deal closed on March 26, 2024 and was recorded on April 5, 2024. The prior lender was Webster Bank which held debt that had an original loan amount of $10.8 million.
The property has 64,610 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $260 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 Stagg Group was Mark Stagg. The signatory for Berkadia Commercial Mortgage was Amy Jesberger.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Cristanir Arroyo, head officer and Javier Monroy, site manager. The business entity is 915 Elsmere Place Bronx Associates Llc.

The property

The residential elevator building with 72 residential units in West Farms has 64,610 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 105 feet and is 100 feet deep with a total lot size of 9,825 square feet. The lot is irregular. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.4 million. The most recent loan totaled $10.8 million and was provided by Sterling National Bank on June 25, 2021.

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 received 23 housing violations and one housing litigation in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on June 8, 2023. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of four of the 11 commercial properties representing 221,221 square feet of the 300,788 square feet. The largest owner is Stagg Group, followed by PWB Management Corp and then David Kleiner.
There are no active new building construction projects on this tax block.

The majority, or 62 percent of the 300,788 square feet of built space are elevator buildings, with walkup buildings next occupying 30 percent of the space.

The borrower

The PincusCo database currently indicates that Stagg Group owned at least 168 commercial properties with 3,492 residential units in New York City with 2,461,318 square feet and a city-determined market value of $343.3 million. (Market value is typically about 50% of actual value.) The portfolio has $763.6 million in debt, with top three lenders as Berkadia Commercial Mortgage, NYC Housing Development Corporation, and Valley National Bank respectively. Within the portfolio, the bulk, or 78 percent of the 2,461,318 square feet of built space are elevator properties, with walkup properties next occupying 12 percent of the space. They are all located in Bronx.

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