The persistent shortage of New York City workforce housing was the driving factor in the top 10 second quarter Bronx real estate deals. Marquee transactions in the multifamily and development sectors dominate the list with industrial and retail assets rounding out the group after dominating prior quarters. Fully permitted deals developed up to groundbreaking changed ownership at rarified prices for Bronx dirt, while occupied apartments changed ownership at new cycle discounts. Transaction volumes are down by half or worse and values are beginning to reflect a more challenging Bronx real estate market.
#1 - Quality Communities Apartment Portfolio
497,824 sf Elevator & Walk Up Apartments of various zones
Sold for $60,000,000 on March 6th $121/sf and $119,048/unit
A Taconic and Clarion Partners JV took a loss on their 2018 investment in 13 central Bronx elevator and walk up apartment buildings. InterVest Capital Partners bought 504 fully occupied units at a 7% cap rate with $47.5 million financed by Webster Bank.
#2 - 714 E 241st Street
29,061 sf Vacant Land zoned M1-1
Sold for $22,379,883 on June 22nd $770/sf and $85k/approved unit
NYC HDC financed Wakefield development site at the 241st Street 2 train with approved plans for 250 regulated units, 24ksf of retail, and 44 underground parking spaces.
#3 - 3801 Waldo Avenue
92,000 sf Elevator Apartments zoned R6, C1-2
Sold for $18,000,000 on May 17th $196/sf and $189,474/unit
Manhattan College converted the 1959 Riverdale elevator building to a dorm in 1991. Yonkers based Stagg Group will take vacant delivery after a 1 year leaseback.
#4 - 1011 Washington Avenue
126,284 sf Elevator Apartments zoned M1-1/R7-2, MX-7
Sold for $17,700,000 on June 2nd $140/sf and $130,147/unit
Part of a Manhattan focused portfolio that L+M Development Partners sold to Ashland Capital Partners. Included a smaller Bronx elevator building at lower valuation.
#5 - 1066 Zerega Avenue
27,780 sf Industrial zoned M3-1
Sold for $16,000,000 on April 25th $576/bsf, $8.9m/acre
Full block Unionport multi tenant industrial site with development potential on Westchester Creek at Bruckner intersection near Innovo’s major development.
#6 - Shleppers Moving & Storage
19,300 sf Industrial zoned M1-1
Sold for $16,000,000 on June 27th $829/bsf, $32.8m/acre
Tiffany Lumber Co. sold their Morrisania facility spanning six adjoining lots on E 165th Street, recently used by Shleppers Moving & Storage, to Sobro Local Development Corporation.
#7 - Boston Road Apartment Portfolio
150,866 sf Elevator & Walk Up Apartments zoned R6
Sold for $10,408,044 on May 11th $69/sf and $68,474/unit
The Lemle & Wolff Companies added 152 units in four buildings to their large portfolio of NYC affordable housing after selling similar assets last fall at more than twice this valuation.
#8 - 600 E 138th Street
37,500 sf Retail zoned R6, C1-4
Sold for $8,600,000 on April 18th $229/sf
Mott Haven retail district site leased to Dollar Tree and Fat Albert Furniture. Parsons Capital Fund financed $5.2 million.
#9 - 1049 Washington Ave Assemblage
12,337 sf Specialty zoned M1-1/R7-2, MX-7
Sold for $8,600,000 on June 7th $697/bsf, $13.8m/acre
Morrisania assemblage sold for $92/buildable sf with $5 million loan from Columbia Capital II Inc.
#10 - 1756-1768 Jerome Avenue
16,560 sf Industrial zoned R8A, C2-4, J
Sold for $8,400,000 on May 24th $507/bsf, $26m/acre
Porlos Realty sold their rezoned Jerome Ave facility near the 176th St 4 train to ACMH Jerome Avenue Housing Development Fund.
The Lemle & Wolff Companies could be the savvy trader of this cycle having sold a portfolio of walk up apartments on Beck Street last September and returned to the market purchasing last quarter’s 7th ranked deal on Boston Road. They sold at $140k/unit and purchased at $68k/unit, adding 59 units and $1.7 million to their portfolio. The developers paying $30 million/acre for Bronx dirt hope they have called the cycle low. Some premium trades supported upper boundary values, but our benchmarks may come under pressure.
Please Subscribe for FREE so you don’t miss any timely updates, and get our handy NYC zoning use guide.
Thanks for reading BuyTheBronx.com and sharing with your friends and colleagues.