Waste Connections pays $12.6M to Royal Waste for specialty in Mott Haven

Waste Connections through the entity Royal Waste Property Holdings, LLC paid $12.6 million to Royal Waste Services through the entity Royal Brothers Bronx Realty LLC for the specialty building (Z9) at 891/899 East 135th Street in Mott Haven, Bronx. The expected use is owner-occupied.
The deal closed on September 3, 2024 and was recorded on September 17, 2024. The property has 17,745 square feet of built space and 17,744 square feet of additional air rights for a total buildable of 35,488 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $711 and the price per buildable square foot is $355 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 January 4, 2021, for $4 million. The signatory for Royal Waste Services was Paul Reali. The signatory for Waste Connections was Ronald J. Mittelstaedt. The contract date was May 21, 2024.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Waste Connections had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Royal Waste Services had not purchased any other properties and had not sold any properties over the same time period.

The property

The specialty building in Mott Haven has 17,745 square feet of built space and 17,744 square feet of additional air rights for a total buildable of 35,488 square feet according to a PincusCo analysis of city data. The parcel has frontage of 101 feet and is 175 feet deep with a total lot size of 17,744 square feet. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $927,000. The most recent loan totaled $6 million and was provided by Valley National Bank on November 18, 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 $2,500 in ECB penalties and $3,850 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 Mott Haven, The bulk, or 45 percent of the 41.7 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 23 percent of the space. In sales, Mott Haven has near average sales volume among other neighborhoods with $296.6 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven has 1.6 times the average amount of major developments relative to other neighborhoods and is the 2nd highest in Bronx. It had 1.7 million 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 this tax block, PincusCo has identified the owners of two of the five commercial properties representing 35,420 square feet of the 199,000 square feet. The two identified owners are Daniel R. Garcia and Royal Waste Services.
There are no active new building construction projects on this tax block.

The majority, or 77 percent of the 199,000 square feet of built space are industrial buildings, with mixed-use buildings next occupying 14 percent of the space.

The seller

The PincusCo database currently indicates that Royal Waste Services owned at least one commercial property in New York City with 17,745 square feet and a city-determined market value of $927,000. (Market value is typically about 50% of actual value.) The portfolio has $6 million in debt, borrowed from Valley National Bank. The portfolio consists of at least a single specialty property. It is located in Bronx.

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