VAJA Group signs $12.3M construction loan for 32-unit project in Kingsbridge Heights

Moses Freund’s VAJA Group through the entity Reservoir Residences LLC as borrower signed a new construction loan with lender Popular Bank valued at $12.3 million for the 32-unit development at 3103 Sedgwick Avenue in Kingsbridge Heights, Bronx.
On the lot, there is one active new building construction project for a 32-unit, 21,611 square-foot R-2 building. The project was submitted by VAJA Group and filed by Moses Freund with plans filed March 7, 2022 and permitted June 26, 2023.
The deal closed on September 28, 2023 and was recorded on October 18, 2023. The property has zero square feet of built space and 21,975 square feet of additional air rights for a total buildable of 21,975 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $562 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 June 9, 2022, for $1.7 million. The signatory for VAJA Group was Moses Freund.

The property

The parcel has frontage of 73 feet and is 100 feet deep with a total lot size of 7,325 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 city-designated market value for the property in 2022 is $506,000.

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 $300 in OATH penalties in the last year.

The neighborhood

In Kingsbridge Heights, The majority, or 57 percent of the 10.6 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 33 percent of the space. In sales, Kingsbridge Heights has the 32nd highest sale turnover among other neighborhoods in Bronx with $34 million in sales volume in the last two years. For development, Kingsbridge Heights has had very little major development activity relative to other neighborhoods.It had 237,354 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 five commercial properties representing 115,500 square feet of the 117,060 square feet. The largest owner is Prana Investments, followed by Moses Freund and then Maximo Gomez.
On the tax block, there was one new building construction project filed totaling 21,611 square feet. It is a 32-unit, 21,611 square-foot residential (R-2) building submitted by VAJA Group and filed by Moses Freund with plans filed March 7, 2022 and permitted June 26, 2023.

The majority, or 99 percent of the 117,060 square feet of built space are elevator buildings, with mixed-use buildings next occupying 1 percent of the space.

The borrower

The PincusCo database currently indicates that VAJA Group owned at least 10 commercial properties with 80 residential units in New York City with 63,789 square feet and a city-determined market value of $7.3 million. (Market value is typically about 50% of actual value.) The portfolio has $24.1 million in debt, borrowed from Northeast Community Bank. Within the portfolio, the bulk, or 60 percent of the 63,789 square feet of built space are walkup properties, with elevator properties next occupying 36 percent of the space. They are all located in Bronx.

Direct link to Acris document. link