Success Academy signs $150M construction loan for school in Concourse
Success Academy Charter Schools through the entity 586 River Ave., LLC as borrower signed a new construction loan with lender Build NYC Resource Corporation valued at $150 million for the industrial building (E7) at 580 River Avenue in Concourse, Bronx.
On the lot, there is one active new building construction project, X00706080, for a 219,166 square-foot school (E) building. The project was submitted by Richard Gladstone with plans filed March 31, 2022 and permitted April 1, 2024.
The deal closed on November 1, 2024 and was recorded on November 25, 2024. 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 a PincusCo analysis of city data. The loan price per built square foot is $1,271 and the price per buildable square foot is $757 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 December 29, 2021, for $105 million. The signatory for Success Academy Charter Schools was Nathaniel Katz. The signatory for Build NYC Resource Corporation was Noah Schumer.
The property
The industrial building in Concourse 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 a PincusCo analysis of city data. The parcel has frontage of 494 feet and is 200 feet deep with a total lot size of 98,973 square feet. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $12.4 million. The most recent loan totaled $36.2 million and was provided by Ladder Capital on July 26, 2019.
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 $800 in OATH penalties in the last year.
The neighborhood
In Concourse, The bulk, or 46 percent of the 13.4 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 16 percent of the space. In sales, Concourse has had very little sales volume relative to other neighborhoods with $99 million in sales volume in the last two years. For development, Concourse has near average amount of major developments among other neighborhoods and is the 6th highest in Bronx. It had 1 million square feet of commercial and multi-family construction under development in the last two years, which represents 8 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of one of the five commercial properties representing 118,000 square feet of the 170,000 square feet. The identified owner is Success Academy Charter Schools.
On the tax block, there was one new building construction project filed totaling 219,166 square feet. It is a 219,166 square-foot educational (E) building submitted by Richard Gladstone with plans filed March 31, 2022 and permitted April 1, 2024.
The majority, or 100 percent of the 170,000 square feet of built space are industrial buildings, with specialty buildings next occupying 0 percent of the space.
The borrower
The PincusCo database currently indicates that Success Academy Charter Schools owned at least 14 commercial properties in New York City with 190,309 square feet and a city-determined market value of $36.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 75 percent of the 190,309 square feet of built space are industrial properties, with specialty properties next occupying 22 percent of the space. The bulk, or 62 percent of the built space, is in Bronx, with Brooklyn next at 25 percent of the space.
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