Timber Equities signs $19.3M refi with Webster Bank for 55-unit rental in Spuyten Duyvil

Timber Equities through the entity 2395 Palisade LP as borrower signed a refi loan with lender Webster Bank valued at $19.3 million for the 55-unit residential elevator building (D1) known as the Henry, at 2395 Palisade Avenue in Spuyten Duyvil, Bronx.
The deal closed on January 31, 2023 and was recorded on February 13, 2023. The prior lender was Bank Hapoalim which held debt that had an original loan amount of $17.5 million.The property has 38,399 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $502 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 15, 2017, for $2.6 million. The signatory for Timber Equities was Joseph Seidenfeld. The signatory for Webster Bank was Daniel De Diego.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Moses Berkovics, head officer and Meyer Stern, site manager. The business entities are 2395 Palisade Lp and 2395palisade Lp.

The property

The 2395 Palisade Avenue parcel has frontage of 139 feet and is 114 feet deep with a total lot size of 6,500 square feet. The lot is irregular. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The most recent loan totaled $17.5 million and was provided by Bank Hapoalim on August 11, 2020.

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 two housing violations and $2,675 in OATH penalties in the last year.

Development

On the lot, there is one active new building construction project for a 55-unit, 37,649 square-foot R-2 building. The project was developed by Michel Perle with plans filed April 24, 2019 and permitted September 9, 2020.

The block

On this tax block, PincusCo has identified the owners of four of the eight commercial properties representing 290,283 square feet of the 321,381 square feet. The largest owner is Timber Equities, followed by NYC Department of Education and then City of New York.
On the tax block, there was one new building construction project filed totaling 37,649 square feet. It is a 55-unit, 37,649-square-foot R-2 building developed by Michel Perle with plans filed April 24, 2019 and permitted June 18, 2020.

The majority, or 78 percent of the 321,381 square feet of built space are specialty buildings, with elevator buildings next occupying 22 percent of the space.

The borrower

The PincusCo database currently indicates that Timber Equities owned at least three commercial properties in New York City with 38,399 square feet and a city-determined market value of $2.2 million. (Market value is typically about 50% of actual value.) The portfolio has $36.5 million in debt, borrowed from Bank Hapoalim. Within the portfolio, the bulk, or 100 percent of the 38,399 square feet of built space are elevator properties, with development properties next occupying 0 percent of the space. They are all located in Bronx.

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