Vertical Community Dev. pays $10.5M to Altmark for industrial in Wakefield

Vertical Community Development through the entity Furman Management LLC acquired the industrial building (E1) at 4541-4551 Furman Avenue in Wakefield, Bronx, following a $10.5 million sale. The seller was the Altmark Group through the entity Markland 4551 LLC. The buyer was a nonprofit housing development fund which assigned all the beneficial ownership to Vertical Community Development’s entity.
The deal closed on March 29, 2024 and was recorded on April 3, 2024. The property has 24,810 square feet of built space and 79,520 square feet of additional air rights for a total buildable of 104,370 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $423 and the price per buildable square foot is $100 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 seller bought the property on June 27, 2018, for $3.6 million. The signatory for Altmark Group was Adi Altmark. The signatory for Vertical Community Development was Peter Serpico and Victoria Lyon. The contract date was November 16, 2023.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Vertical Community Development had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Altmark Group purchased one property in one transaction for a total of $9.8 million and sold three properties in two transactions for a total of $61.8 million over the same time period.

The property

The industrial building in Wakefield has 24,810 square feet of built space and 79,520 square feet of additional air rights for a total buildable of 104,370 square feet according to a PincusCo analysis of city data. The parcel has frontage of 192 feet and is 172 feet deep with a total lot size of 24,850 square feet. The lot is irregular. The zoning is R7D which allows for up to 4.2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.6 million.

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 not received any significant violations 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 Wakefield, The bulk, or 35 percent of the 9.3 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 27 percent of the space. In sales, Wakefield has had very little sales volume relative to other neighborhoods with $141 million in sales volume in the last two years. For development, Wakefield has had very little major development activity relative to other neighborhoods.It had 488,334 square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the 19 commercial properties representing 34,000 square feet of the 101,264 square feet. The two identified owners are Tejpal Sandhu and City Of New York.
There are no active new building construction projects on this tax block.

The majority, or 97 percent of the 101,264 square feet of built space are industrial buildings, with mixed-use buildings next occupying 3 percent of the space.

The seller

The PincusCo database currently indicates that Altmark Group owned at least 13 commercial properties with 24 residential units in New York City with 388,693 square feet and a city-determined market value of $40.4 million. (Market value is typically about 50% of actual value.) The portfolio has $82.3 million in debt, with top three lenders as Dime Community Bank, TriState Capital Bank, and Signature Bank respectively. Within the portfolio, the bulk, or 68 percent of the 388,693 square feet of built space are industrial properties, with specialty properties next occupying 26 percent of the space. The bulk, or 98 percent of the built space, is in Bronx, with Manhattan next at 2 percent of the space.

The buyer

The PincusCo database currently indicates that Vertical Community Development owned at least one commercial property in New York City with 2,880 square feet and a city-determined market value of $742,000. (Market value is typically about 50% of actual value.) The portfolio has $92 million in debt, borrowed from NYC Housing Development Corporation. The portfolio consists of at least a single industrial property. It is located in Bronx.

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