The combined value of the top 10 first quarter Bronx real estate deals fell by 8.4% from 2022, which understates the 55% decline in total transaction values. Deal volume dropped by around half across all asset classes compared to last year’s first quarter, except for the Office category which was skewed by the second place portfolio below. Our small apartment metrics are running around a third of last year’s pace and the hot Industrial sector has cooled similarly. As regulatory and monetary conditions tighten, the sellers of the following ten deals must feel relieved to lighten their risk load.
#1 – 1020-1040 E 149th St
21,160 sf Industrial facility on 7 acres zoned M3-1
Sold for $73,500,000 on March 31st
Petroleum distributor Buckeye Partners sold its Port Morris storage and distribution facility at 1020 and 1040 East 149th Street for $73.5 million. Neighbor Sprague Energy bought the facility, previously owned by Hess, used to store petroleum products before they are shipped to gas stations and other businesses.
#2 - 3250 Westchester Ave, 3651 Bruckner Blvd, & 3278 Westchester Ave
126,000 sf Office and Mixed Use assembledge zoned R7-1, C2-2
Sold for $57,044,793 on March 8th, $270/sf
Professional building built in 2020 at the Pelham Bay Park transit station serving the 6 train and buses reaching as far as Queens and White Plains. Transaction included neighboring retail and professional buildings.
#3 - 804 & 825 E 141st St
275,000 sf Office building zoned M3-1
Sold for $44,000,000 on March 8th, $160/sf
Altmark Group sold the Port Morris office building converted in 2021 from a 1916 warehouse near the foot of the RFK Bridge to a joint venture between SoBro and MADDD Equities, including a parking facility across the street. The buyers intend to rebrand the asset as The Marketplace, a mixed-use center with office/studio and retail leases. LibreMax Capital LLC, provided a $30.8 million loan towards the purchase.
#4 - 2351 Walton Ave
34,028 sf Elevator Apartments, zoned R8
Sold for $28,279,254 on March 8th, $831/sf and $456,117/unit
Two years after acquiring and developing the property, 61 newly constructed elevator apartments were sold at a premium valuation. A few blocks south of the Fordham Road 4 train station at Jerome Ave and west of Grand Concourse B and D trains.
#5 - 44 & 47 W 175th St & 1695 Grand Ave
158,569 sf Elevator Apartments zoned R7-1
Sold for $26,500,000 on January 6th, $167/sf and $172,078/unit
Vitus Group sold three Morris Heights apartment buildings, totaling 111-units, to a joint venture between Camber Property Group and The Community Preservation Corporation. Merchants Capital Corporation provided an $18,390,000 loan towards the purchase.
#6 - 1351 Jerome Ave & 1342 Inwood Ave
56,250 sf Industrial facility zoned R8A, C2-4, J
Sold for $20,500,000 on March 1st, $364/sf building, $499/sf land
Permits have been filed for a 131 unit Mount Eden apartment building near the 170th Street 4 train station. The current warehouse and distribution facility will become 89,176sf of residential space with a rear yard and 26 open parking spaces.
#7 - 58 E Fordham Rd
17,712 sf Retail building zoned C4-4
Sold for $20,100,000 on January 11th, $1,135/sf
Porta Bella acquired their 7th store in The Bronx area from Roberts Equities LLC. They had been subleasing the first floor at the corner of East Fordham Rd and Morris Ave in the Fordham Road Retail Center. The 27,351sf, two-story retail/office building traded at a 6.69% cap rate. Pacific National Bank provided a total loan amount of $12,000,000.
#8 - 1320 Inwood Ave
21,500 sf Industrial facility zoned R8A, J
Sold for $12,725,500 on January 25th, $592/sf building and land
Concern Inwood Housing Development Fund of Medford NY purchased this Mount Hope industrial property apparently to redevelop into assisted housing. Permits have yet to be filed by the entity formed earlier this year for the site near the 170th Street 4 train station.
#9 - 5564 Broadway
14,482 sf Retail building zoned R6, C1-3
Sold for $9,250,000 on January 12th, $639/sf building and $443/sf land
Walgreens’ national retrenchment has reached their store in the Kingsbridge Retail Center at the 231st Street 1 train station which was sold to Kamin Realty a Pitsburgh based shopping center operator.
#10 - 3960-3966 Merritt Ave
24,860 sf Industrial facility zoned M1-1
Sold for $9,250,000 on March 29th, $372/sf building and $270/sf land
Eastchester combined warehouse properties with yard space near the Dyer Ave 5 train station sold to a Mount Vernon based construction company.
After a year of aggressive Federal Reserve tightening, systemic financial stress has removed some local banks from the commercial lending market. Those remaining are reluctant to lend at previous terms. Higher rates and less available financing are taking their toll on The Bronx real estate market. Meanwhile, rising regulations and inflation are roiling profitability. The premium marquee deals understate deterioration in the broader market that saw only 351 properties sold in the first quarter compared to almost 1,000 a year ago. Scarcity seems to be suporting valuations which have not fallen as far. We are reviewing our benchmarks beyond the revisions mentioned in our previous post to pinpoint how the slowdown has effected values.
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