19-31 Mount Vernon Ave. Development Project

Project Location

19-31 Mount Vernon Ave. Mount Vernon, NY 10550

9 N. Bond St. Mount Vernon, NY 10550

About the Project

Mount Vernon Ave Project is a 5 parcel property with 2 vacant lots and 3 existing commercial buildings. We will acque the property and turn it into a mixed use property by renovating and upgrading the existing buildings allowing for increased rents and extra support to hold up the the building of an additional 20 units on top of the exsiting buildings in phase 1. Phase 2 will consist of building another apartment building on the 2 vacant lots which will hold an additional 25 units increasing the value of the property to $12.525 million dollars with an all in cost of about $7.25 million dollars giving us 45% equity return and a monthly revenue of $110,000 per month from the residential and commercial units combined.

Summary

This report provides a comprehensive investment analysis for the property located at 19-31 Mount Vernon Avenue, Mount Vernon, NY 10550. The analysis covers the proposed redevelopment of the existing industrial property, which includes three buildings and two vacant lots, into a mixed-use residential and industrial complex. The project involves renovating the existing structures, adding apartments on top, and constructing a new apartment building on the vacant lots.

The report includes a detailed examination of property data, a thorough market analysis with rental comparisons, an in-depth review of zoning regulations and development feasibility, comprehensive financial projections, and a strategic overview of value enhancement opportunities. The analysis indicates that while the project faces challenges related to high development costs, the strong market fundamentals, supportive zoning environment, and numerous value-add opportunities present a compelling case for long-term investment.

Property and Location Analysis

Property Overview

The subject property consists of an assemblage of industrial buildings and vacant lots located at 19-31 Mount Vernon Avenue. The total land area is approximately 0.21 acres (9,147 square feet), with the potential to be combined with an adjacent property at 9 North Bond Street for a total development footprint of 23,693 square feet.

Property Details:

Location and Transportation

The property is situated in a highly accessible, transit-oriented location in Mount Vernon, with excellent connectivity to New York City and the surrounding Westchester County area.

•Walk Score®: 88 (Very Walkable)

•Transit Score®: 73 (Excellent Transit)

Nearby Transit Options:

Demographics

The surrounding area exhibits a dense and diverse population base, providing a strong foundation for residential and commercial demand.

1-Mile Radius Demographics (2024):

Market Analysis

Westchester County Commercial Real Estate Market

The Westchester County commercial real estate market demonstrated remarkable resilience in 2024, with mixed-use properties showing strong performance. The market recorded 277 total trades with a combined volume of $901 million. New development remains a significant trend, with nearly 25,000 multifamily units recently completed or under construction in major county hubs and over 1,000 units in Mount Vernon, Peekskill, and Harrison.

Rental Market Analysis

The Mount Vernon rental market is characterized by strong demand and limited supply, with a median rent of $2,675, which is 36% above the national average. The market has experienced a 9% year-over-year increase in rental rates, with only 43 rental properties currently available.

Rental Rate Comparison:

Comparable Mixed-Use Developments

Mount Vernon is experiencing a surge in mixed-use development, with several notable projects underway that provide valuable comparables for the proposed development.

Zoning and Development Feasibility

Zoning and Land Use

The property is located in the MVW-C (Mount Vernon West Corridor) zone, which is a transit-oriented development district designed to encourage mixed-use projects. While the base zoning suggests a maximum height of 30 feet and 2 stories, the property's listing indicates that a larger development is possible through an assemblage with 9 North Bond Street.

Development Potential (with assemblage):

•Maximum Height: 5 stories (60 feet)

•Residential Floor Area: 45,400 sq ft

•Commercial Use: Permitted on the first floor

Approval Process

The development requires site plan approval from the Mount Vernon Planning Board. The process involves a pre-application review with the Building Department, followed by a formal submission of plans and supporting documents. The city's adoption of form-based codes for the area is intended to streamline the approval process for projects that align with the community's vision for a denser, more pedestrian-friendly environment.

Development Feasibility

The project is highly feasible from a zoning and regulatory standpoint. The city has demonstrated a clear commitment to mixed-use development, as evidenced by recent approvals for several large-scale projects. The primary constraints are the need to acquire the adjacent property for the full development potential and the

Financial Projections and Investment Analysis

Development Program

The proposed development program includes the construction of 45 residential units and 12,000 square feet of ground-floor commercial space. The residential component will feature a mix of studio, one-bedroom, and two-bedroom apartments.

Unit Mix:

Development Costs

The total development cost is estimated to be $12,720,000, which includes land acquisition, hard construction costs, and soft costs. The cost per residential unit is projected to be $254,400.00.

Cost Breakdown:

Revenue Projections

The project is projected to generate a total annual rental income of $2,011,200, with an effective annual income of $1,911,200 after a 5% vacancy allowance.

Annual Revenue:

5.4. Investment Analysis

The financial analysis indicates that the project, in its current form, faces challenges in achieving immediate profitability. The estimated property value of $15,927,440 (based on a 10% cap rate) is higher than the total development cost, resulting in a positive development spread.

Key Return Metrics:

Risk Assessment

The primary risks associated with the project include construction cost overruns, timeline delays, and market absorption challenges. To mitigate these risks, a phased development approach, value engineering, and a pre-leasing program are recommended.

Value Enhancement and Additional Income Opportunities

To improve the project's financial viability, several value enhancement strategies and additional income opportunities should be pursued. These strategies can significantly increase revenue and property value.

Primary Value Enhancement Strategies

• Diversified Revenue Streams: The mixed-use nature of the property provides inherent diversification. Staggered lease renewals between commercial and residential tenants can provide a stable and growing income stream.

• Transit-Oriented Development Premium: The property's proximity to the Mount Vernon West Metro-North station allows for premium rental rates and potentially reduced parking requirements, which can be converted into additional leasable space.

• Green Building and Sustainability: Implementing energy-efficient systems and pursuing green building certifications like LEED can reduce operating costs, attract environmentally conscious tenants, and increase property value.

Additional Income Opportunities

Tax Incentives and Financing Opportunities

• Low-Income Housing Tax Credits (LIHTC): Incorporating affordable housing units can provide significant tax credit equity.

• Transit-Oriented Development Incentives: New York State offers various incentives for TOD projects that can reduce development costs.

• Value Capture Strategies: The city may be open to establishing a Tax Increment Financing (TIF) district to help fund infrastructure improvements.

Conclusion

The proposed mixed-use development at 19-31 Mount Vernon Avenue presents a compelling long-term investment opportunity. While the initial financial projections indicate a negative development spread, the project's strong market fundamentals, supportive zoning environment, and numerous value-add opportunities provide a clear path to profitability.

Location Data

• "B+" Rating for 10550/10552 Zip Code on Niche

Why Invest in 19-31 Mount Vernon Ave. Development Project?

• Strong Cash Flow: backed by a strong rental market and rental strategy.

• Development & Rental Play: with the ability to expand on the existing buildings and to also build one new building allows for the maximizing of the space given, plus increasing rental incomeand adding additional revenue streams make this a secure, feasable and highly profitable asset.

• No HOA

• Regular Passive Monthly Income: rent distributed directly to your account—no lockup, peer-to-peer liquidity

• Ability to Trade or Sell your Tokens: peer-to-peer or on the Secondary Market

• Documented transparency: every report and contract available for review

• Professional oversight & management by active management company specializing in vacation & corporate rentals

• Fractional Access of Ownership: Own a piece of the next project in Fractional Syndication's real estate evolution starting at just $500 per token.

Estimated Project “Go-Live” Date (Projected): TBD

Want VIP access to this and other upcoming projects on The Investors Pool? Simply CLICK the blue button below to sign up. Once you're signed-up you'll receive early access to information, notices & shares for this and all other upcoming projects before anyone else. Remember, "Being in the Know is as Easy as CLICKING the Blue Button Below."