Storage Post signs $42.6M refi loan with Nuveen for storage in Morrisania

Storage Post through the entity Storage Post/3350 Park Ave, LLC as borrower signed a refi loan with lender Nuveen through the entity Teachers Insurance And Annuity Association valued at $42.6 million for two industrial properties including the industrial building (E7) at 3340-3360 Park Avenue in Morrisania, Bronx and industrial building (G7) at 440 East 166th Street in Morrisania, Bronx.
The deal closed on November 5, 2024 and was recorded on November 21, 2024. The prior lender was JPMorgan Chase which held debt that had an original loan amount of $48.8 million.The two properties have 138,600 square feet of built space and 21,500 square feet of additional air rights according to a PincusCo analysis of city data. The loan price per built square foot is $307 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 Storage Post was William A. Palmer III.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 3340-3360 Park Avenue.

The property

The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $20.8 million. The most recent loan totaled $48.8 million and was provided by JPMorgan Chase on March 1, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $150 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Morrisania, The majority, or 52 percent of the 25.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 20 percent of the space. In sales, Morrisania has near average sales volume among other neighborhoods with $259.5 million in sales volume in the last two years and is the 2nd highest in Bronx. For development, Morrisania has had very little major development activity relative to other neighborhoods.It had 621,013 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 the tax block of 3340-3360 Park Avenue, PincusCo has identified the owners of seven of the 13 commercial properties representing 245,962 square feet of the 402,079 square feet. The largest owner is Storage Post, followed by Johnson Development Associates and then Rami Esses.
On the tax block, there were three new building construction projects totaling 263,743 square feet. The largest is a 104-unit, 125,002 square-foot residential (R-2) building submitted by Bolex Capital Group and filed by Boris Babakhanov with plans filed July 6, 2023 and permitted March 13, 2024. The second largest is a 104-unit, 125,002 square-foot residential (R-2) building submitted by Bolex Capital Group and filed by Boris Babakhanov with plans filed July 6, 2023 and permitted March 13, 2024.

The majority, or 70 percent of the 402,079 square feet of built space are industrial buildings, with elevator buildings next occupying 27 percent of the space.

The borrower

The PincusCo database currently indicates that Storage Post owned at least 15 commercial properties in New York City with 1,222,784 square feet and a city-determined market value of $151.2 million. (Market value is typically about 50% of actual value.) The portfolio has $237.1 million in debt, borrowed from JPMorgan Chase and Heitman Capital Management. Within the portfolio, the bulk, or 100 percent of the 1,222,784 square feet of built space are industrial properties, with development properties next occupying 0 percent of the space. The bulk, or 38 percent of the built space, is in Bronx, with Brooklyn next at 33 percent of the space.

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