Massive Bronx Multifamily Portfolio Sells for $140M
- Mar 04, 2016
New York—A 38-building multifamily portfolio totaling 935 rent- stabilized units in the Bronx has traded hands for $140 million. The buyers were Harbor Group International, Emerald Equities and York Capital.
The buildings are in various neighborhoods, such as Bedford Park, Belmont, Fordham, Hunts Point, Little Italy, Lower Concourse and Mott Haven. Among other properties, the portfolio includes 1192 Walton Ave. in Concourse and 769 Bryant Ave. in Hunts Point.
The deal is reportedly the largest portfolio sale in the borough since 2013, when the Related Cos. and New York City pension funds acquired a Bronx portfolio for $270 million. This is Harbor Group International’s first multifamily acquisition in the Bronx market.
The portfolio was marketed by Daniel Parker, Will Silverman and Paul Gillen of Hodges Ward Elliott, who reviewed more than a dozen bids for the portfolio from institutional, private, foreign, and even public sources of capital since first putting it on the market. “A lot of smart money is acquiring large portfolios of non-luxury multifamily because they offer safe cash flows,” said Parker.
Another factor in the investor interest is that New Yorkers themselves are now turning to the Bronx in search of lower rents, as they did in Brooklyn in the 2000s. “As Brooklyn and Manhattan become increasingly expensive, the Bronx remains an affordable alternative for New Yorkers who commute to the office districts in Manhattan,” Parker noted.
The buyers also obtained a $105 million acquisition loan from New York Community Bank to facilitate the deal. Meridian Capital Group’s Marvin Jeremias and Steven Halpert arranged the financing.