Yitzchok Weinberg pays $8M to Monarch Realty for 33-unit walkup in Longwood

Yitzchok Weinberg through the entity 1027 Gv LLC paid $8 million to Monarch Realty Holdings through the entity 1027 Westchester Avenue LLC for 33-unit residential walkup building at 1027-1029 Westchester Avenue in Longwood, Bronx.
The deal closed on May 10, 2022 and was recorded on May 25, 2022. The property has 25,200 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $316 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 August 8, 2018, for $8.2 million. The signatory for Monarch Realty Holdings was Farzad “Frank” Shahery. The signatory for Yitzchok Weinberg was Yitzchok Weinberg.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Yitzchok Weinberg purchased two properties in two transactions for a total of $5.6 million and has no record it sold any properties over the past 24 months.
The seller Monarch Realty Holdings purchased one property in one transaction for a total of $6.8 million and had not sold any properties over the same time period. The former owners according to the Department of Housing Preservation and Development includes Nicolas Loizou, head officer and Carol Rocco, officer. The business entity is 1027 Westchester Avenue Llc. The 25,200-square-foot property generated revenue of $627,719 or $25 per square foot, according to the most recent income and expense figures.

The property

The 1027-1029 Westchester Avenue parcel has frontage of 60 feet and is 80 feet deep with a total lot size of 5,940 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 property has a J-51 exemption that started in 2003 and expires in 2037. The city-designated market value for the property in 2022 is $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 one housing violation 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 Longwood, the bulk, or 36 percent of the 27.1 million square feet of commercial built space are residential elevator buildings, with residential walkup buildings next occupying 22 percent of the space. In sales, Longwood has had very little sales volume relative to other neighborhoods with $199.5 million in sales volume in the last two years. For development, Longwood has 3.8 times the average amount of major developments relative to other neighborhoods and is the 3rd highest in Bronx. It had 3.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other residential walkup buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of one of the five commercial properties representing 25,200 square feet of the 42,896 square feet. The identified owner is Farzad “Frank” Shahery. There are no active new building construction projects on this tax block.

The majority, or 71 percent of the 146,753 square feet of built space are 1-4 family buildings, with residential walkup buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that Monarch Realty Holdings owned at least seven commercial properties with 156,946 square feet and a city-determined market value of $28.1 million. (Market value is typically about 50% of actual value.) The portfolio has $42.8 million in debt, with top three lenders as Sterling National Bank, First National Bank of Long Island, and PIMCO respectively. Within the portfolio, the bulk, or 51 percent of the 156,946 square feet of built space are residential walkup properties, with residential elevator properties next occupying 37 percent of the space. The bulk, or 88 percent of the built space, is in Manhattan, with Queens next at 12 percent of the space.

The buyer

The PincusCo database currently indicates that Yitzchok Weinberg owned at least three commercial properties with 68,692 square feet and a city-determined market value of $3.9 million. (Market value is typically about 50% of actual value.) The portfolio has $5.5 million in debt, borrowed from New York Community Bank. Within the portfolio, the bulk, or 52 percent of the 68,692 square feet of built space are residential elevator properties, with residential walkup properties next occupying 48 percent of the space. They are all located in Bronx.

Surrounding

Within a 400-foot radius of 1027-1029 Westchester Avenue, Pincusco identified four commercial real estate items of interests occurred over the past 24 months.
Of those four items, one was in new building development. It was a new building permit issued on September 15, 2021 for a 107,373-square-foot E building at 1016 Fox St.
One of those four items was a sale which Democracy Prep New York Charter Schools bought the 15,165-square-foot, seven-unit retail building (K1) on 1000 Westchester Avenue for $7.9 million from Peter Fine on March 19, 2021.
Of those four items, two were loans above $5 million totaling $68 million. The most recent of the two was Peter Fine which borrowed $48 million from M&T Bank secured by the 15,165-square-foot, seven-unit retail building (K1) on 1000 Westchester Avenue on January 21, 2022.

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