Stagg Group signs $24.5M construction loan with Valley National for 92-unit project in Wakefield

The Stagg Group through the entity Carpenter Avenue Corner Associates LLC as borrower signed a new construction loan with lender Valley National Bank valued at $24.5 million for the 92-unit development site at 4176 Carpenter Avenue in Wakefield, Bronx.
On the lot, there is one active new building construction project for a 92-unit, 62,566 square-foot R-2 building. The project was developed by Mark Stagg with plans filed September 28, 2021 and it has not been permitted yet.
The deal closed on January 6, 2023 and was recorded on January 27, 2023. The prior lender was Signature Bank which held debt that had an original loan amount of $2.9 million.
The owner bought the property on October 22, 2021, for $5.7 million. The signatory for Stagg Group was Mark P. Stagg. The signatory for Valley National Bank was Donald K. Secrest.

The property

The 4176 Carpenter Avenue parcel has frontage of 64 feet and is 105 feet deep with a total lot size of 6,790 square feet. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $327,000.

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 received $33,020 in ECB penalties and $31,150 in OATH penalties in the last year.

The neighborhood

In Wakefield, the bulk, or 34 percent of the 9.3 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 27 percent of the space. In sales, Wakefield has had very little sales volume relative to other neighborhoods with $108.9 million in sales volume in the last two years. For development, Wakefield has had very little major development activity relative to other neighborhoods.It had 468,631 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 15 commercial properties representing 240,594 square feet of the 301,582 square feet. The largest owner is Ved Parkash, followed by Stagg Group and then Morgan Group.
On the tax block, there was one new building construction project filed totaling 62,566 square feet. It is a 92-unit, 62,566-square-foot R-2 building developed by Mark Stagg with plans filed September 28, 2021 and permitted September 9, 2022.

The majority, or 55 percent of the 301,582 square feet of built space are walkup buildings, with elevator buildings next occupying 38 percent of the space.

The borrower

The PincusCo database currently indicates that Stagg Group owned at least 168 commercial properties in New York City with 2,042,374 square feet and a city-determined market value of $281.7 million. (Market value is typically about 50% of actual value.) The portfolio has $475.9 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 72 percent of the 2,042,374 square feet of built space are elevator properties, with walkup properties next occupying 15 percent of the space. They are all located in Bronx.

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