Stagg Group signs $42.2M refi with Berkadia for new 134-unit rental in Williamsbridge

Stagg Group through the entity Gunhill BH LLC as borrower signed a refi loan with lender Berkadia Commercial Mortgage valued at $42.2 million for the 134-unit residential elevator building (D7) at 739 East Gun Hill Road in Williamsbridge, Bronx.
The deal closed on August 30, 2024 and was recorded on September 11, 2024. The prior lender was Valley National Bank which held debt that had an original loan amount of $26 million. The property has 116,515 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $362 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 November 17, 2021, for $4 million. The signatory for Stagg Group was Mark Stagg. The signatory for Berkadia Commercial Mortgage was Amy Jesberger.

The property

The residential elevator building with 134 residential units in Williamsbridge has 116,515 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 68 feet and is 178 feet deep with a total lot size of 17,835 square feet. The lot is irregular. The zoning is R7A which allows for up to 4 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $397,000. The most recent loan totaled $26 million and was provided by Valley National Bank on August 25, 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 one DOB violation, four housing violations, and $6,050 in OATH penalties in the last year.

Development

On the lot, there was a new building construction project, X00562360, for a 143-unit, 97,681 square-foot R-2 building. The project was submitted by Louis Lebovits with plans filed July 28, 2021 and permitted May 19, 2022.

The block

On this tax block, PincusCo has identified the owners of nine of the 20 commercial properties representing 179,201 square feet of the 243,046 square feet. The largest owner is Irgang Group, followed by Center For Urban Community Services and then Francine Ross-Roden.
On the tax block, there were two new building construction projects totaling 152,072 square feet. The largest is a 143-unit, 97,681 square-foot residential (R-2) building submitted by Louis Lebovits with plans filed July 28, 2021 and permitted May 19, 2022. The second largest is a 59-unit, 54,391 square-foot residential (R-2) building submitted by Mark Irgang with plans filed September 29, 2014 and it has not been permitted yet.

The majority, or 44 percent of the 243,046 square feet of built space are elevator buildings, with mixed-use buildings next occupying 23 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 $820.9 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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