VAJA Group signs $29.3M refi with JLL for 73-unit project in East Morrisania
VAJA Group through the entity Stebbins Owner LLC as borrower signed a refi loan with lender JLL through the entity JLL Real Estate Capital, LLC valued at $29.3 million for the development site (V1) at 1420 Stebbins Avenue in East Morrisania, Bronx.
On the lot, there is one active new building construction project for a 73-unit, 53,929 square-foot R-2 building. The project was submitted by VAJA Group and filed by Moses Freund with plans filed June 30, 2021 and permitted November 26, 2021.
The deal closed on April 26, 2023 and was recorded on May 1, 2023. The prior lender was NorthEast Community Bank which held debt that had an original loan amount of $19.1 million.
The owner bought the property on June 28, 2021, for $2.9 million. The signatory for VAJA Group was Moses Freund. The signatory for JLL was Teresa Goerish.
Prior sales and revenue
The owners according to the Department of Housing Preservation and Development includes Moses Freund, head officer and Abe Fixler, agent. The business entity is Stebbins Owner Llc.
The property
The parcel has frontage of 175 feet and is 92 feet deep with a total lot size of 14,801 square feet. The lot is irregular. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $273,000. The most recent loan totaled $19.1 million and was provided by Northeast Community Bank on December 1, 2021.
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 23 housing violations, $50 in OATH penalties, and one housing litigation in the last year.
The neighborhood
In East Morrisania, The bulk, or 43 percent of the 12 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 30 percent of the space. In sales, East Morrisania has had very little sales volume relative to other neighborhoods with $113.7 million in sales volume in the last two years. For development, East Morrisania has near average amount of major developments among other neighborhoods and is the 8th highest in Bronx. It had 879,008 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of two of the 10 commercial properties representing 147,313 square feet of the 269,397 square feet. The two identified owners are Louie Nine Boulevard Associates, L.P. and City Of New York.
On the tax block, there were two new building construction projects totaling 132,438 square feet. The largest is a 113-unit, 78,509 square-foot building submitted by Kuafu Properties with plans filed September 12, 2022 and it has not been permitted yet. The second largest is a 73-unit, 53,929 square-foot residential (R-2) building submitted by VAJA Group and filed by Moses Freund with plans filed June 30, 2021 and permitted November 26, 2021.
The majority, or 77 percent of the 269,397 square feet of built space are elevator buildings, with specialty buildings next occupying 20 percent of the space.
The borrower
The PincusCo database currently indicates that VAJA Group owned at least four commercial properties with 51 residential units in New York City with 38,654 square feet. The portfolio has $5 million in debt, borrowed from Northeast Community Bank. Within the portfolio, the bulk, or 59 percent of the 38,654 square feet of built space are elevator properties, with walkup properties next occupying 41 percent of the space. They are all located in Bronx.
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