Six Rent-Stabilized Buildings Sell in the Bronx for $34M

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PH Realty Capital and Rockledge paid $33.6 million for six South Bronx residential buildings featuring a combined 267 units, Commercial Observer has learned.

Arthur Leeds Real Estate, the seller according to property records, had owned 111-119 Tudor Place, 1170-1176 Walton Avenue and 309 East 164th Street since at least 1990, with the majority of units — 196 — being two-bedroom apartments.

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Ariel Property Advisors’ Victor Sozio, Shimon Shkury, Daniel Mahfar and Jason Gold brokered the deal on behalf of the buyers, saying that rent-stabilized properties are in demand as long as they’re well maintained.

“This centrally located South Bronx portfolio offers stable cash flow at a cost basis well below replacement cost,” Mahfar said in a statement. “These six assets boast a strong history of tenant retention and almost no deferred maintenance, along with the additional benefits of a J-51 tax alteration on each of the buildings.”

The 314,590-square-foot portfolio is in the Concourse section of the Bronx where residents can access the commercial corridors of East 170th Street and Jerome Avenue, as well as mass transit lines.

Multifamily sales were strong in the third quarter, with the dollar volume of transactions in New York City up 37 percent over the same quarter last year, Ariel Property Advisors said in an October report.

The average dollar volume was also 71 percent above the five-year quarterly average of $2.085 billion as multifamily continues to be a hedge against inflation and volatility in the office leasing market, the firm pointed out.

Mark Hallum can be reached at mhallum@commmercialobserver.com.