Starwood Sells Two Commercial Condos in the South Bronx for $94M

Starwood Capital Group has offloaded two commercial condominium units in the South Bronx for a total of $93.9 million, according to city records made public Wednesday.

Starwood, through the entity 425 Westchester Fee Owner, sold the two units at 425 Westchester Avenue to EducationRE, Inc., a Florida-based not-for-profit that was formed to assist under-resourced schools with development and financing solutions.

Dan Schwaegler, a managing director in asset management at Starwood, signed the deal for the seller, while it was unclear who signed for the buyer, which used the entity ERE425.

It’s also unclear who brokered the deal. A spokesperson for Starwood did not immediately respond to a request for comment, while a spokesperson for EducationRE could not be reached for comment.

Starwood has been involved with the property since 2022, when it provided investment capital to AB Capstone to develop 425 Westchester Avenue, according to LoopNet. The 10-story, 150,000-square-foot building at the corner of Westchester and Bergen avenues is anchored by Zeta Charter School and the Jewish Child Care Association. Century Medical & Dental Center is also a tenant of the South Bronx building.

EducationRE will be assisting in the development of Zeta Charter School’s facility, according to a recent application with the New York City Economic Development Corporation.

News of the deal comes just one week after Starwood provided a $161 million loan to refinance Arden Living’s Forty Six Fifty multifamily property in Manhattan’s Inwood neighborhood, as Commercial Observer previously reported.

Before that, Starwood gave a $64 million loan to Slate Property Group and Avenue Realty Capital to refinance the Welz, a 162-unit multifamily property that opened earlier this year in East Williamsburg, Brooklyn, CO reported.

Isabelle Durso can be reached at idurso@commercialobserver.com.