Tristar Management pays $6.2M to SMA Equities for retail in Melrose

Tristar Management Associates through the entity 3037 Partners LLC paid $6.2 million to SMA Equities through the entity 156 Third Holding LLC for retail building at 3037 3rd Avenue in Melrose, Bronx.
The deal closed on May 12, 2022 and was recorded on May 23, 2022. The property has 8,600 square feet of built space and 20,984 square feet of additional air rights for a total buildable of 29,584 square feet according to PincusCo analysis of city data. The sale price per built square foot is $715 and the price per buildable square foot is $207 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 SMA Equities was attorney Edward J. Bullard, Jr.. The signatory for Tristar Management Associates was Edward Ostad. A prior signatory on the property was Jack Youdeem, who died in 2010.

Prior sales and revenue

Prior to this transaction, Pincusco has no record that the buyer Tristar Management Associates had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller SMA Equities purchased 11 properties in one transactions for a total of $5 million and had not sold any properties over the same time period. The 8,600-square-foot property generated revenue of $381,670 or $44 per square foot, according to the most recent income and expense figures.

The property

The 3037 3rd Avenue parcel has frontage of 102 feet and is 99 feet deep with a total lot size of 8,600 square feet. The lot is irregular. The zoning is C4-4 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 3.44 times FAR for residential. The city-designated market value for the property in 2022 is $2 million.

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 $125 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Melrose, the majority, or 51 percent of the 9 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 15 percent of the space. In sales, Melrose has the 36th highest sale turnover among other neighborhoods in Bronx with $10.7 million in sales volume in the last two years. For development, Melrose has had very little major development activity relative to other neighborhoods.It had 164,342 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 this tax block, PincusCo has identified the owners of three of the 18 commercial properties representing 27,357 square feet of the 218,121 square feet. The two identified owners are ZLB Holdings and Langsam Property Services. There are no active new building construction projects on this tax block.

The majority, or 38 percent of the 261,621 square feet of built space are residential elevator buildings, with specialty buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that SMA Equities owned at least 11 commercial properties with 188,400 square feet and a city-determined market value of $70.6 million. (Market value is typically about 50% of actual value.) The portfolio has $185.4 million in debt, with top three lenders as Safra National Bank, Bank Leumi, and CIT Bank respectively. Within the portfolio, the bulk, or 49 percent of the 188,400 square feet of built space are residential elevator properties, with mixed-use properties next occupying 28 percent of the space. They are all located in Manhattan.

The buyer

The PincusCo database currently indicates that Tristar Management Associates owned at least one commercial property with 16,212 square feet and a city-determined market value of $5.1 million. (Market value is typically about 50% of actual value.) The portfolio has $8.5 million in debt, borrowed from Santander Bank. The portfolio consists of at least a single residential walkup property. It is located in Manhattan.

Surrounding

Within a 400-foot radius of 3037 3rd Avenue, Pincusco identified three commercial real estate items of interests occurred over the past 24 months.
Of those three items, one was for major renovation including a certificate of occupancy change. It was a permit issued on August 27, 2021 for the $730,665 renovation of 13,937-square-foot R-2 building with 21 residential units at 724 Elton Avenue.
Of those three items, two were loans above $5 million totaling $88.4 million. The most recent of the two was Related Companies which borrowed $44.2 million from Goldman Sachs secured by the 0-square-foot, five-unit mixed-use building (K4) on 3006 3rd Avenue and two other properties on December 23, 2020.

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