Top Ten Third Quarter Bronx Real Estate Deals

All but one of the third quarter’s top ten Bronx real estate transactions traded above $10 million. Retail, Industrial and specialty assets continued to support record values while commercial apartment metrics came under pressure. Five of the top ten sales are located near the 2 and 5 subway line serving both the east and west sides of Manhattan. Areas near this spine of The Bronx enjoy widespread demand from developers, retailers, and apartment hunters.

Our benchmark Numbers remain unchanged with most supported by recent trades. Elevator and walk -up apartments saw below benchmark trades of properties with extensive deferred maintenance. Those lower valuations could be driven by propertty specific issues or could reflect greater macro trends. We’ll look for confirmation before deciding on benchmark revisions.

1057 Southern Blvd

#1 - 1057 Southern Blvd & 1031 Westchester Ave

23,339 sf Retail & Office zoned R7-1, C1-4

Sold for $22,750,000 on July 13th, $975/sf

This busy West Farms retail corner attracted developers with its R7 zoning, and good retail tenants attracted investors. Located along the popular 2 and 5 subway route makes for easy commute to east and west sides of Manhattan. Costar reports it as a 6.84% cap rate with Flushing Bank providing 70% LTV financing.

#2 - 1100 Leggett Ave

59,889 sf Industrial zoned M1-2, HP

Sold for $21,500,000 on July 15th, $359/sf

With easy access to the Bruckner and Deegan Expressways, Innovo Property Group purchased this 1.38 acre Hunts Point site with a $43.4MM senior construction loan from PCCP, LLC for the development of a 58,950 SF build-to-suit Industrial facility. The property is pre-leased to CHEP US that manages crates, containers and reuse pallets. CBRE represented the seller, Metro Office Furniture Rental Inc.

#3 - 160 Van Cortlandt Park S

14,160 sf Specialty zoned R7-1

Sold for $20,562,384 on August 16th, $1,452/sf

Located at the southern end of Van Cortlandt Park, The former Roman Catholic Church of the Visitation and its 1.3 acre overgrown R7 parish lot was purchased by Tishman Speyer who is planning 336 affordable housing units in an 8 story building with 69 enclosed parking spaces.

#4 - 1430 Bruckner Blvd

49,625 sf Industrial zoned M1-1

Sold for $18,000,000 on August 10th, $363/sf

Soundview self storage facility built in 2018 on .56 acres of land sold by an industry operator probably sick of all the Bruckner construction to another seeing light at the end of the tunnel.

#5 - 2329 Bassford Ave

17,605 sf Specialty zoned R6A

Sold for $17,062,000 on August 23rd, $969/sf

Marsha’s House, a five-story Phoenix House facility located a few blocks from the Arthur Ave shopping district, sold with adjoining lots. R6 zoning and proximity to Fordham University make the Belmont neighborhood popular among developers.

#6 - 1335 E Bay Ave

28,575 sf Industrial zoned M3-1

Sold for $19,260,000 on September 16th, $674/sf

Industrial Paper Tube Inc. successors sold four Hunts Point industrial parcels adjoining on Longfellow Ave and totaling around 50,000 square feet. Produce wholesaler operating onsite and substantial space listed for lease at an asking rent of $19/sf, modified gross.

#7 - 1838 Vyse Ave

44,525 sf Walk Up Apartments zoned C4-2  

Sold for $12,200,000 on September 12th, $274/sf and $187,692/unit

JLL represented the seller RRW Realty Corp on the sale of the 65 unit Crotona Park East 5 story walk up apartment building near the 2/5 train. Signature Bank provided 86% financing on the value add deal priced below our benchmarks at $275/sf and $188k/unit.

#8 - 818-862 Beck St

87,900 sf Walk Up Apartments zoned R7-1

Sold for $12,100,000 on September 15th, $138/sf and $144,048/unit

Ariel Advisors represented the seller of 10 adjacent buildings with 84 mostly 3 and 4 bedroom units in Longwood, comprising most of the block across the street from Bill Rainey Park. Near the PAL Center and 41st Precinct. Sold at 6.75% cap rate with 75% LTV financing provided by NY Community bank.

#9 - 245 E Gun Hill Rd

87,606 sf Elevator Apartments zoned R7-1, C1-3

Sold for $10,200,000 on August 10th, $116 per sf and $150,000 per unit

Marcus & Millichap represented the Seller Ditmas Management Corporation on the sale of 65 elevator units to Gjonaj Realty & Management. Near Montefiore Moses campus, Bronx River Parkway, and half mile from 2 and 5 subways.

#10 - 2206 Holland Ave

59,772 sf Elevator Apartments zoned R6

Sold for $9,100,000 on August 16th, $152 per sf and $165,454 per unit

Another Marcus & Millichap deal near the 2 and 5 subway spine. 54 elevator units with excellent transit and highway access along leafy Pelham Parkway. Extensive deferred maintenance kept valuation below our benchmarks. Repairs have already commenced. 

In total, the third quarter of 2022 continued to enjoy vibrant sales throughout the borough and across most asset classes. The persistent housing shortage is driving more residential developments. A contentious east Bronx proposal just won City Council approval for 348 units on Bruckner Blvd and Crosby Ave. Valuations of other classes are being supported by shrinking availability as properties get repurposed for residential development. Apartment demand remains strong, but higher interest rates and operating expenses seem to be pressuring valuations in those sectors.

Please use our Contact function to ask any questions or learn more about current values in The Bronx real estate market.

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