Urban Resource pays Heights Advisors $64M for new building, dev site, in Unionport

Urban Resource Institute through the entity 951 Olmstead Avenue Housing Development Fund Corp acquired an interest from Heights Advisors through the entity 2086 Bruckner Boulevard LLC valued at $64 million for 161-unit specialty building (N2) at 951 Olmstead Avenue in Unionport, Bronx and the development site at approximately 2092 Bruckner Expressway in Unionport, Bronx. Urban Resource Institute is a nonprofit that works with domestic violence survivors.

The deal closed on March 7, 2024 and was recorded on March 13, 2024. The two properties have 24,444 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $2,618 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.)
This is an entity level sale, not a deed sale.

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 951 Olmstead Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Urban Resource Institute purchased three properties in three transactions for a total of $54.3 million and has no record it sold any properties over the past 24 months.
The seller Heights Advisors had not purchased any other properties and had not sold any properties over the same time period.

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

On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 160,596 square feet. The largest is a new building project for a 128-unit, 88,702 square-foot R-2 building submitted by Heights Advisors and filed by Math Roth with plans filed October 4, 2018 and it has not been permitted yet. The second largest is a new building project for a 161-unit, 71,894 square-foot R-1 building submitted by Heights Advisors and filed by Math Roth with plans filed October 4, 2018 and permitted March 4, 2022.

The neighborhood

In Unionport, The bulk, or 32 percent of the 6.5 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 20 percent of the space. In sales, Unionport has near average sales volume among other neighborhoods with $252 million in sales volume in the last two years and is the 3rd highest in Bronx. For development, Unionport has had very little major development activity relative to other neighborhoods.It had 612,098 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.

The block

On the tax block of 951 Olmstead Avenue, PincusCo has identified the owner of the one commercial property that spans that spans 359,556 square feet on the block.The identified owner is Stellar Management.
On the tax block, there were two new building construction projects totaling 160,596 square feet. The largest is a 128-unit, 88,702 square-foot residential (R-2) building submitted by Heights Advisors and filed by Math Roth with plans filed October 4, 2018 and it has not been permitted yet. The second largest is a 161-unit, 71,894 square-foot hotel/dormitory/shelter (R-1) building submitted by Heights Advisors and filed by Math Roth with plans filed October 4, 2018 and permitted March 4, 2022.

All properties are elevator.

The seller

The PincusCo database currently indicates that Heights Advisors owned at least one commercial property with 165 residential units in New York City with 136,490 square feet and a city-determined market value of $20.4 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single elevator property. It is located in Brooklyn.

The buyer

The PincusCo database currently indicates that Urban Resource Institute owned at least three commercial properties with 96 residential units in New York City with 27,112 square feet and a city-determined market value of $4 million. (Market value is typically about 50% of actual value.) The portfolio has $87.5 million in debt, borrowed from UMB Bank and KeyBank. Within the portfolio, the bulk, or 100 percent of the 27,112 square feet of built space are N2 properties, with development properties next occupying 0 percent of the space. They are all located in Manhattan.

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