Stagg Group signs $27.9M construction loan with Webster Bank for 48-unit project in Riverdale

Stagg Group through the entity 3745 Riverdale Avenue LLC as borrower signed a new construction loan with lender Webster Bank valued at $27.9 million for the development (V1) at 3745 Riverdale Avenue in Riverdale, Bronx.

There is a 48-unit, 64,846-square-foot residential (R-2) project submitted by Joseph Kelleher of Simone Development with plans filed February 9, 2016 and permitted January 12, 2022.
The deal closed on October 12, 2022 and was recorded on October 24, 2022. The property has zero square feet of built space and 49,530 square feet of additional air rights for a total buildable of 49,530 square feet according to PincusCo analysis of city data. The loan  price per buildable square foot is $564 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 January 25, 2022, for $6 million. The signatory for Stagg Group was Mark Stagg. Stagg Group bought this from Simone Development Companies.

The property

The 3745 Riverdale Avenue parcel has frontage of 76 feet and is 297 feet deep with a total lot size of 20,383 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.3 million.

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 $35,305 in ECB penalties in the last year.

Development

On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 160,329 square feet. The largest is a new building project for a 95,483 square-foot B building developed by Joseph Kelleher with plans filed November 26, 2013 and it has not been permitted yet. The second largest is a new building project for a 48-unit, 64,846 square-foot R-2 building submitted by Joseph Kelleher of Simone Development with plans filed February 9, 2016 and permitted May 31, 2022.

The neighborhood

In Riverdale, the majority, or 73 percent of the 4 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 19 percent of the space. In sales, Riverdale has the 37th highest sale turnover among other neighborhoods in Bronx with $19.8 million in sales volume in the last two years. For development, Riverdale has had very little major development activity relative to other neighborhoods.It had 70,158 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.

The block

On this tax block, PincusCo has identified the owners of three of the 12 commercial properties representing 178,836 square feet of the 241,509 square feet. The largest owner is Michael Goldberg, followed by Weinreb Management and then Stagg Group.
On the tax block, there were two new building construction projects totaling 160,329 square feet. The largest is a N/A-unit, 95,483-square-foot B building developed by Joseph Kelleher with plans filed November 26, 2013 and it has not been permitted yet.The second largest is a 48-unit, 64,846-square-foot R-2 building developed by Joseph Kelleher with plans filed February 9, 2016 and permitted January 12, 2022.

the majority, or 75 percent of the 238,636 square feet of built space are elevator buildings, with retail buildings next occupying 17 percent of the space.

The borrower

The PincusCo database currently indicates that Stagg Group owned at least 172 commercial properties in New York City with 2,187,696 square feet and a city-determined market value of $305.5 million. (Market value is typically about 50% of actual value.) The portfolio has $447.9 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 68 percent of the 2,187,696 square feet of built space are elevator properties, with walkup properties next occupying 14 percent of the space. They are all located in Bronx.

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