The Real Deal New York

Hornig brings Savanna on to $31 million South Bronx deal

Partners expected to close today on 175,000 sf office building

March 05, 2015 02:25PM
By Rich Bockmann

From left: Daren Hornig, 2417 Third Avenue and Christopher Schlank

From left: Daren Hornig, 2417 Third Avenue and Christopher Schlank

Hornig Capital Partners, which went into contract late last year to purchase a large South Bronx office building for $31 million, has brought Savanna into the action, The Real Deal has learned.

A source close to the transaction said the deal is expected to close today.

Hornig, a Long Island-based investor, went into contract back in November on the property – an eight-story, 175,000 square-foot Class C office building at 2417 Third Avenue in a transitional neighborhood in the Mott Haven section of the Bronx.

Brokers Ranee Jaber and Ruben Martinez of DY Realty represented both sides in the off-market deal.

Pushed by ever-growing demand in the outer boroughs, a number of new residential projects have popped up in the South Bronx recently, and elected officials are pushing a plan for a Brooklyn Bridge Park-like project along the Harlem River waterfront.

Savanna, headed by Christopher Schlank and Nicholas Bienstock, is one of the most-active institutional investors in the city. It just put its 500,000 square-foot Financial District office building at 100 Wall Street on the market, which could fetch as much as $250 million. It also sold a controlling stake in 1375 Broadway and 31 Penn Plaza, as TRD reported.

  • Docd601

    How long do you think it will actually take for the south Bronx to REALLY SEE BIG CHANGE?

    Thoughts???

    • NELSONBENSON

      It’s anybody’s guess. Generally, it is still a frontier destination and while recent neighborhoods like Bushwick changed fast, we have to remember that previously, Williamsburg, and Hoboken took 30 years to happen. The brownstone stock there is low, but it is well served with transportation and close to the city. We have to remember that office wise even Harlem has not taken off yet, and so we have to be cautious. Will it happen eventually? Probably. When? It can be two years, it can be twenty five.

      • Docd601

        Thanks for the response,the area does feel and look eerily like Williamsburg in the 1990s,but I thik with the current market conditions and the proximity to Manhattan,it’s going to be much closer to 2 years than 25 years….I see rent prices are already pretty high in Mott Haven and there are quite a few transplants and “hipster doofus” types living in the area….I’m looking forward to seeing how this area transforms and becomes a hotbed for investment and culture.

        • realposter

          Well as these guys are showing – you have to get in early…. These guys are not dumb – they know what they are doing. They’ve seen the small changes already.

          • Docd601

            Read the article in WSJ today.

          • realposter

            I did…

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