20-Building Carmel Bronx Portfolio

20-Building Carmel Bronx Portfolio: 1050-1080 Wheeler, 1085-1095 Colgate Avenue, 1466-1472 & 1484-1494 Watson Avenue, 2543, 2549, 2553, 2559, 2563, 2567 Decatur Avenue & 2608 Creston Avenue, 4002-4004, 4014-4016, 4053-4055, 4128-4030 & 4138-4140 Carpenter Avenue, 1065 Jerome Avenue, 3830 Bronx Boulevard, 2353 & 2357 Crotona Avenue.

Doshi & Cohen Tackle 2015’s Largest Multifamily Portfolio Sale in The Bronx

Ten Buildings Sold To Related as Part of $112 Million Sale

New York, NY – Besen & Associates, Inc. is pleased to announce the sale of a 248,000 square foot portfolio of ten multifamily buildings located in close proximity of each other in the Fordham Manor, Highbridge and Belmont

sections of The Bronx. The subject properties have a total of 248 apartments throughout two 5-story buildings and eight 6-story buildings.  They are located at 2543, 2549, 2553, 2559, 2563 & 2567 Decatur Avenue, 2608 Creston Avenue, 1065 Jerome Avenue, 2353 & 2357 Crotona Avenue.  The properties were sold for $35,500,000 from an investment group comprised of a San Francisco-based private equity fund and a New York operating partner.  They were bought by Related as part of the largest portfolio sale of 2015. Amit Doshi and Ron Cohen represented the seller in the transaction.

The buildings were all meticulously upgraded by the sellers, who implemented significant capital improvements amounting to $2,000,000 since 2010, as well as extensive apartment renovations.  Capital improvements made include: electric, front doors, heat computer, outdoor lighting, painting, roof & basement doors, security cameras, waterproofing and roof and pipe insulation.  While various upgrades have been made, there was measurable upside potential for the next owner, as the buildings feature generously sized units with rents that are still under market value.  The properties also benefitted from lower taxes due to J-51 tax abatements which expire in 2024-2026.

The sale price equates to $143,000 per unit, $143 per square foot, 10.6 GRM, and a 5.25% cap rate.  The tenancy is entirely rent stabilized, with in-place rent averaging out to $1,128.  “The size and quality of these assets attracted interest far and wide,” stated Amit Doshi. “While the seller initially went to market with the portfolio broken into several subsets, Related ultimately prevailed with the winning bid for the entire thing.”

“The sellers added measurable value with meticulous upgrades in their time of ownership,” added Ron Cohen