Wavecrest Management pays $28M for three residential elevator properties in Belmont

Wavecrest Management through the entity 24 Bch Ii Housing Development Fund Company, Inc. paid $28 million to Aaron Jungreis through the entity 24 Bch II Housing Development Fund Company, Inc. for the 68-unit residential elevator building (D7) at 2476 Hughes Avenue in Belmont/Little Italy, Bronx, 74-unit residential elevator building (D1) at 2404-16 Crotona Avenue in Belmont/Little Italy, Bronx, and 43-unit residential elevator building (D7) at 2423-31 Belmont Avenue in Belmont/Little Italy, Bronx.
The deal closed on June 28, 2023 and was recorded on July 12, 2023. The three properties have 160,537 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $174 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 Aaron Jungreis was Aaron Jungreis. The signatory for Wavecrest Management was Joseph M. Camerata. The buyers assumed a $15,767,000 loan.

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 2404-16 Crotona Avenue.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Wavecrest Management purchased one property in one transactions for a total of $24 million and has no record it sold any properties over the past 24 months.
The seller Aaron Jungreis purchased two properties in one transaction for a total of $41.5 million and sold one property in one transaction for a total of $2.9 million over the same time period. The former owners according to the Department of Housing Preservation and Development includes Aaron Jungreis, head officer and Melissa Jusino, agent. The business entities are Wavecrest Mgmt Team and Hcb Realty, Llc. The three properties with a total of 160,537 square feet of built space generated revenue of $3 million per year or $19 per square foot. The sale price per square foot was $174.

The property

The residential elevator building with 74 residential units in Belmont/Little Italy has 160,537 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 100 feet deep with a total lot size of 15,000 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 $5.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received 19 DOB violations, 17 housing violations, $6,660 in OATH penalties, and three housing litigations 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 block

On the tax block of 2404-16 Crotona Avenue, PincusCo has identified the owners of seven of the nine commercial properties representing 367,843 square feet of the 374,113 square feet. The largest owner is Settlement Housing Fund, followed by Robert Izsak and then NYC Department Of Education.
On the tax block, there was one new building construction project filed totaling 147,230 square feet. It is a 147,230 square-foot educational (E) building submitted by Elan Abneri with plans filed June 13, 2019 and permitted November 19, 2019.

The majority, or 55 percent of the 374,113 square feet of built space are specialty buildings, with walkup buildings next occupying 29 percent of the space.

The seller

The PincusCo database currently indicates that Aaron Jungreis owned at least 34 commercial properties with 898 residential units in New York City with 786,946 square feet and a city-determined market value of $84.6 million. (Market value is typically about 50% of actual value.) The portfolio has $7.5 million in debt, borrowed from New York Community Bank. Within the portfolio, the bulk, or 66 percent of the 786,946 square feet of built space are elevator properties, with walkup properties next occupying 33 percent of the space. The bulk, or 43 percent of the built space, is in Brooklyn, with Manhattan next at 37 percent of the space.

The buyer

The PincusCo database currently indicates that Wavecrest Management owned at least 10 commercial properties with 952 residential units in New York City with 1,053,747 square feet and a city-determined market value of $62.4 million. (Market value is typically about 50% of actual value.) The portfolio has $16.5 million in debt, borrowed from Signature Bank. Within the portfolio, the bulk, or 89 percent of the 1,053,747 square feet of built space are elevator properties, with walkup properties next occupying 11 percent of the space. The bulk, or 92 percent of the built space, is in Bronx, with Brooklyn next at 8 percent of the space.

Direct link to Acris document. link