Ved Parkash signs $12.8M refi loan with Peapack-Gladstone Bank for residential elevator in Kingsbridge Heights

Ved Parkash through the entity Parkash 3873 LLC as borrower signed a refi loan with lender Peapack-Gladstone Bank valued at $12.8 million for the midblock 89-unit residential elevator building at 3873 Orloff Avenue in Kingsbridge Heights, Bronx.
The deal closed on April 8, 2022 and was recorded on May 2, 2022. The prior lender was Peapack-Gladstone Bank which held debt that had an original loan amount of $13.2 million.The property has 81,767 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $157 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 January 28, 2016, for $19 million. The signatory for Ved Parkash was Ved Parkash. The signatory for Peapack-Gladstone Bank was Martin J. Brady.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Ved Parkash, head officer. The business entity is Parkash 3873 Llc. The 81,767-square-foot property generated revenue of $1.6 million or $19 per square foot, according to the most recent income and expense figures.

The property

The 3873 Orloff Avenue parcel has frontage of 150 feet and is 115 feet deep with a total lot size of 17,300 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 $4.2 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 nine DOB violations, $18,750 in ECB penalties, 51 housing violations, and $19,500 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 Kingsbridge Heights, the majority, or 59 percent of the 15.9 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 22 percent of the space. In sales, Kingsbridge Heights has the 30th highest sale turnover among other neighborhoods in Bronx with $25.2 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 175,133 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 23 commercial properties representing 433,899 square feet of the 878,207 square feet. The largest owner is Atlantic Development Group, followed by Ved Parkash and then LAL Property Management. There are two active new building construction projects totaling 3,521 square feet. The largest is a two-unit, 2,092-square-foot R-3 building developed by Joselito Lopez with plans filed February 16, 2021 and it has not been permitted yet.The second largest is a one-unit, 1,429-square-foot R-3 building developed by Juan Camacho with plans filed July 24, 2020 and it has not been permitted yet.

The majority, or 73 percent of the 1.7 million square feet of built space are residential elevator buildings, with residential walkup buildings next occupying 13 percent of the space.

The borrower

The PincusCo database currently indicates that Ved Parkash owned at least 71 commercial properties with 4.6 million square feet an and 4,461 residential units.

Surrounding

Within a 400-foot radius of 3873 Orloff 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 application filed on March 30, 2022 for the $345,456 renovation of 7,196-square-foot R-2 building with 16 residential units at 3854 Bailey Avenue.
Of those three items, two were loans above $5 million totaling $32.5 million. The most recent of the two was LAL Property Management which borrowed $10 million from Sterling National Bank secured by the 61,000-square-foot, 64-unit rental (C1) on 3804 Bailey Avenue on January 19, 2021.

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