Developer scores with 31-year lease for basketball-themed charter school
At today’s groundbreaking for the Earl Monroe New Renaissance Basketball School in the South Bronx, all eyes will be on the school’s namesake, a legendary player known as Earl the Pearl, as well as NBA Commissioner Adam Silver and other hoops dignitaries.
But it will represent a victory for the developer, Kiumarz Geula of Great Neck, who formed a joint venture that acquired the nearly century-old building at 647 Elton Avenue and two adjacent properties on East 153rd Street, then inked a 31-year, triple-net lease with the charter school at $49 per square foot.
The joint venture includes the previous property owner, David Damaghi. The Elton Avenue property was transferred to Damaghi by Mansour Damaghi in 2001, property records show. Both Damaghis are also from Great Neck, a bastion of dynastic real estate families.
(It could not be determined Thursday if they are related to the Great Neck family led by Nasser and Shahnaz Damaghi, who made a fortune in paper and personal care products, and their children Nader, Kambiz and Babak Damaghi. The family recently bought at least $182 million in South Florida development sites.)
Geula, who heads Pillar Property Management, secured a $21 million loan from Bank of Hope to finance the project in the Melrose section of the Bronx. The total development cost for the 69,000-square-foot building is expected to be $35 million.
The design of the new building, led by IMC Architecture and ESKW/Architects, includes an unusual requirement — an 8,000-square-foot gymnasium — as well as a dedicated broadcast studio.
“This is not a standard charter school design,” Geula said in an interview. “The design of the school is costlier than other charter schools and is custom-designed for this particular tenant.”
Because purpose-built space for charter schools has a limited choice of tenants — the number of charters in New York is capped — developers generally demand a long-term lease, as do schools, who need the stability to attract students and thus, public funding.
The rent for 647 Elton Avenue will rise by 1 or 2 percent per year. “Very standard” for charter schools, said Geula, whose firm has done other charter school projects, according to its website.
With construction expected to be completed by early 2026, the Earl Monroe School, named for the Hall of Fame guard who helped the Knicks win the 1973 championship, will serve 440 students in grades 9 through 12.
The development team includes JV Construction & Consulting and Brisa Builders. Jack S. Irushalmi, CEO of Tri-Star Construction, sits on the school’s board of trustees.
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