Stagg Group signs $25.4M refi loan with Berkadia for 110-unit rental in Highbridge
Stagg Group through the entity 1245 Elgh LLC as borrower signed a refi loan with lender Berkadia Commercial Mortgage through the entity Berkadia Commercial Mortgage LLC valued at $25.4 million for the 110-unit residential elevator building (D1) at 1249 Edward L Grant Hwy in Highbridge, Bronx.
The deal closed on July 29, 2024 and was recorded on August 27, 2024. The prior lender was Valley National Bank which held debt that had an original loan amount of $20 million.
The property has 80,660 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $314 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 October 30, 2020, for $6.1 million. The signatory for Stagg Group was Mark Stagg. The signatory for Berkadia Commercial Mortgage was Elizabeth Bistany.
The property
The residential elevator building with 110 residential units in Highbridge has 80,660 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 144 feet and is 92 feet deep with a total lot size of 10,349 square feet. The lot is irregular. The zoning is R9A which allows for up to 7.52 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $455,000. The most recent loan totaled $20 million and was provided by Valley National Bank on January 19, 2022.
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 10 housing violations and $230 in OATH penalties in the last year.
Development
On the lot, there was a new building construction project, 240296657, for a 121-unit, 80,678 square-foot R-2 building. The project was submitted by Stagg Group and filed by Jay Martino with plans filed December 7, 2020 and permitted February 8, 2022.
The block
On this tax block, PincusCo has identified the owners of 16 of the 32 commercial properties representing 555,714 square feet of the 835,803 square feet. The largest owner is Shimon Greisman, followed by Isaac Herskovitz and then Martin Schwartz.
On the tax block, there were four new building construction projects totaling 124,646 square feet. The largest is a 121-unit, 80,678 square-foot residential (R-2) building submitted by Stagg Group and filed by Jay Martino with plans filed December 7, 2020 and permitted February 8, 2022. The second largest is a 39-unit, 30,128 square-foot hotel/dormitory/shelter (R-1) building submitted by Anthony Milohnic and filed by Anthony Milohnic with plans filed February 28, 2022 and permitted July 14, 2023.
The majority, or 71 percent of the 835,803 square feet of built space are elevator buildings, with development buildings next occupying 10 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 $795.5 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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