Zeta Charter Schools Acquires Bronx Development Site for $26M

A 0.6-acre lot with approximately 181,000 buildable square feet in the South Bronx has sold for $25.5 million, according to a Thursday announcement from seller broker Ariel Property Advisors.

Zeta Charter Schools, a network of public charter schools in New York City, has purchased the development site at 261 Walton Avenue in Mott Haven for $140 per buildable square foot.

The seller was the LLC HP MJM Housing Development Fund Company, which is tied to Knickpoint Ventures and the New York City Housing Partnership and bought the lot along the Harlem River in 2022. The NYC Housing Partnership is a nonprofit that facilitates the development, preservation and financing of affordable and rental housing in the city.

The seller was represented by Jason M. Gold, Victor Sozio and Gabriel Elyaszadeh from Ariel Property Advisors. The buyer did not have a broker. 

“The South Bronx continues to see strong demand from both residential developers and institutional users,” Gold said in a statement. “This transaction underscores not only the ongoing strength of the Mott Haven development market, but also the growing demand for high-quality educational facilities in the neighborhood.

Representatives for the NYC Housing Partnership and Zeta Charter Schools did not immediately respond to Commercial Observer’s requests for comment. 

In 2022, JCAL Development filed plans to build a 13-story, 195-unit residential building on the Mott Haven lot, according to New York YIMBY. The project was set to close with city officials, but it seems the plans fell through. 

It’s unclear what Zeta Charter Schools’ specific plans are for its new property, but Crain’s New York Business reported the charter school network will use the space to house more than 1,000 students once completed.

Zeta Charter Schools has been busy lately, too, after signing a 35,000-square-foot lease at 517 West 164th Street in Manhattan’s Washington Heights neighborhood in January.

Zeta operates 11 schools in the Bronx, Queens and Upper Manhattan currently serving children in grades pre-K through ninth grade, according to the charter network’s website. Several of its schools are adding one grade per year as they expand to full capacity.

The Mott Haven area of the South Bronx has been evolving as investment and development — particularly along the waterfront — has taken hold. Recently, the city announced that it approved the first Expedited Land Use Review Procedure (ELURP) application at 351 Powers Avenue. This will bring 84 affordable housing units to the space, as well as a community theater and a workforce training facility.

“Treating the housing crisis with the urgency it demands means moving at the speed of need,” Mayor Zohran Mamdani said in a statement announcing the 351 Powers project. “Mott Haven is just the beginning. We are using every tool available to build affordable housing projects faster, so working people can afford to stay in the city they call home.”

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.