Success Academy pays $105M to MADDD Equities for dev site in Concourse

Success Academy Charter Schools through the entity 586 River Ave., LLC paid $105 million to MADDD Equities through the entity 580 Gerard LLC for the industrial building as a development site at 580 River Avenue in Concourse, Bronx.
The deal closed on December 29, 2021 and was recorded on January 24, 2022.
The property has 118,000 square feet of built space and 80,168 square feet of additional air rights for a total buildable of 197,946 square feet according to PincusCo analysis of city data. The sale price per built square foot is $889 and the price per buildable square foot is $530 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 seller bought the property on July 26, 2019, for $42 million.
The signatory for MADDD Equities was Jorge Madruga. The signatory for Success Academy Charter Schools was Shablar Ahmed.
Prior to this transaction, the buyer Success Academy Charter Schools had not purchased any other properties and had not sold any properties over the past 24 months.
The seller MADDD Equities purchased four properties in four transactions for a total of $84.4 million over the same time period.
The 118,000-square-foot property generated revenue of $2.1 million or $18 per square foot, according to the most recent income and expense figures.

In Concourse, the bulk, or 40 percent of the 15.8 million square feet of built space are residential elevator buildings, with specialty buildings next occupying 21 percent of the space. In sales, Concourse has had very little sales volume relative to other neighborhoods with $54.1 million in sales volume in the last two years. For development, Concourse has 1.5 times the average amount of major developments relative to other neighborhoods and is the 5th highest in the Bronx. It had 1.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.
On the tax block, the majority, or 100 percent of the 170,000 square feet of built space are industrial buildings.
Within a 400-foot radius of 580 River Avenue, PincusCo identified four commercial real estate items of interests occurred over the past 24 months.
Of those four items, one was in new building development. It was a new building permit application filed on September 15, 2021 for a 151,663-square-foot R-2 building with 197 residential units at 586 Gerard Avenue.
One of those four items was a sale which Silverback Acquisitions and Development bought the 30,345-square-foot, one-unit industrial (G1) on 580 Gerard Avenue for $16.9 million from Emmes Asset Management Company on October 2, 2020.
Of those four items, two were loans above $5 million totaling $29.9 million. The most recent of the two was Alcova Capital Management and Karten Organization which borrowed $17 million from Forest Road Company secured by the 30,345-square-foot, one-unit industrial (G1) on 580 Gerard Avenue on November 15, 2021.

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