Vantage Elevation signs $45M loan for six properties in Concourse
Vantage Elevation through the entity G.A.L. Manufacturing Company, LLC as borrower signed a refi loan with lender Royal Bank Of Canada valued at $45 million for six properties including the industrial building (F1) at 585 Gerard Avenue in Concourse, Bronx, development building (V9) at N/A East 153rd Street in Concourse, Bronx, and development building (V1) at N/A Cromwell Avenue in Concourse, Bronx.
The deal closed on July 27, 2023 and was recorded on October 2, 2023. The prior lender was Guggenheim Partners which held debt that had an original loan amount of $21.6 million.
The six properties have 151,235 square feet of built space and 54,392 square feet of additional air rights for a total buildable of 205,847 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $297 and the price per buildable square foot is $218 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 Vantage Elevation was Kenneth E. Blanch.
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 585 Gerard Avenue.
The property
The industrial building in Concourse has 151,235 square feet of built space and 54,392 square feet of additional air rights for a total buildable of 205,847 square feet according to a PincusCo analysis of city data. The parcel has frontage of 148 feet and is 200 feet deep with a total lot size of 24,999 square feet. The lot is irregular. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $2.6 million.
Violations and lawsuits
The properties were involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $75 million money judgment concerning a contract filed on May 13, 2022, by Maddd Equities against G.A.L. MANUFACTURING COMPANY. In addition, according to city public data, the properties have received 12 DOB violations and $1,900 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 $1 million on this tax lot.
The neighborhood
In Concourse, The bulk, or 46 percent of the 13.4 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 16 percent of the space. In sales, Concourse has had very little sales volume relative to other neighborhoods with $178.9 million in sales volume in the last two years. For development, Concourse has had very little major development activity relative to other neighborhoods.It had 574,989 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.
The block
On the tax block, there was one new building construction project filed totaling 3,800 square feet. It is a 3,800 square-foot mercantile (M) building submitted by Chris Tartaglia with plans filed June 10, 2016 and it has not been permitted yet.
The majority, or 81 percent of the 112,983 square feet of built space are industrial buildings, with walkup buildings next occupying 13 percent of the space.
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