Bronx Multifamily Building Sells at an Apparent Discount for $26M
By Abigail Nehring January 26, 2024 2:31 pm
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Related Companies’ private-equity arm, Related Fund Management, shed a rent-stabilized building in the Bronx.
Investor Yechiel Newhouse picked up Noble Mansion, a 237-unit multifamily building at 1500 Noble Avenue, for $26 million, according to property records. The deal was announced by brokerage Ariel Property Advisors, which arranged the sale for Related.
The deal was a bargain compared to the $38 million Related paid in 2014 to purchase the property from real estate investment firm Pembroke Companies, according to city property records.
That’s a 32 percent discount from the sale price 10 years ago — a drop in value on par with declines in rent-stabilized property values across New York City over the past year. A 16-building portfolio in Washington Heights sold last September for $47 million, a 44 percent discount from its 2016 price.
The Noble Avenue building was one of the first properties Related Fund Management acquired after Related launched the business in the early 2010s. The fund has raised over $5 billion in capital, according to its website.
The value of rent-stabilized buildings in the Bronx declined 29 percent last year compared to peak pricing, according to market research from Ariel Property Advisors. Owners closed on just over 1,000 multifamily deals across the city in 2023 totaling $7.4 billion — a 52 percent drop in dollar volume year-over-year.
The 17-story building near the intersection of the Cross Bronx Expressway and Bronx River Parkway in Parkchester was built in 1965 and contains a mix of 50 one-bedroom apartments, 136 two-bedroom apartments, and 51 three-bedroom apartments.
Ariel’s Victor Sozio, Shimon Shkury, Jason Gold, Daniel Mahfar and Gabriel Elyaszadeh represented the seller.
Newhouse declined to comment and a spokesperson for Related did not respond to a request for comment.
Update: This story has been updated to show that Yechiel Newhouse was the buyer.
Abigail Nehring can be reached at anehring@commercialobserver.com.
