Bronx landlord Chestnut pays $22M for historic Jewish houses

Shalom Aleichem Houses were acquired through foreclosure

New York /
Apr.April 18, 2013 06:00 PM

Updated, 12:55 p.m., Apr. 20: Chestnut Holdings has paid $22 million for a trio of distressed properties in the Bronx that are part of a former historical Jewish complex, according to city records filed today.

The deal for the Shalom Aleichem Houses in Van Cortlandt Village in the Jerome Park neighborhood closed March 4. The acquisition includes 3605 Sedgwick Avenue, a 153,952-square-foot building with 116 units; 3470 Cannon Place, a 65,000-square-foot building with 55 units; and 3451 Giles Place, a 71,000-square-foot building with 64 units, according to PropertyShark. The three properties consist of 15 smaller buildings. 

“They’re excellent buildings — it’s a beautiful complex,” Daniel Wiener, Chestnut’s director of investments, told The Real Deal. “It was built by socialist Jewish immigrants, and was a socialist/Communist complex back in the 1920s.”

Brooklyn-based Van Cortlandt Village LLC purchased the three-property complex in 2007, but fell behind in its bank payments and the properties went into foreclosure, Wiener said. Representatives from Van Cortlandt Village could not be reached for comment.

Chestnut will continue to operate the units as rental apartments, Wiener added.

Chestnut has been amassing a vast portfolio of over 70 properties in the Bronx, but has come under fire from tenants for alleged mismanagement and a series of rent and fee hikes.

Chestnut’s chief executive Jonathan Wiener was recently ranked No. 20 out of 106 of the Bronx’s “worst landlords,” by Public Advocate Bill de Blasio’s office, based on building violations at its 2201 Jerome Avenue property, as previously reported.

Daniel Wiener, who is Jonathan’s son, addressed this issue, noting that at the time Chestnut bought the building in September 2012, it had over 450 violations, and that the Public Advocate’s list does not take into account violations incurred under previous ownership. The property now has 131 violations, according to Housing Preservation and Development records, and Wiener said they were actively working to keep reducing the number.

“We take a lot of pride in our ownership,” he added. “We buy tough buildings in particularly tough areas. We do get flak from time to time for stuff like this. Our name gets put on after the fact.”

Wiener defended Chestnut’s record as a landlord, saying allegations of rent hikes were “absolutely not possible,” given that the buildings were rent-regulated.

“If you look at the rate of violations in our buildings, it’s significantly less than one per unit,” he said. “Perspective-wise, it’s really very good compared to other multifamily operators in the neighborhood.”

Housing violations records confirmed his statement.


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
(DOB)
City hit with lawsuit over Black workers’ treatment at Dept. of Buildings
City hit with lawsuit over Black workers’ treatment at Dept. of Buildings
Mustang, Texas is now owned by billionaire Mark Cuban. (J Elmer Turner Realtors, Inc.)
Mark Cuban buys a Mustang (well, a town called Mustang) in Texas
Mark Cuban buys a Mustang (well, a town called Mustang) in Texas
The Georgetown house once owned by Julia Child (Zillow)
Georgetown home where Julia Child lived hits market for $3.5 million
Georgetown home where Julia Child lived hits market for $3.5 million
Austin, Texas (Credit: iStock)
Austin’s mansion market is booming
Austin’s mansion market is booming
Rendering of Inspire Entertainment Resort (Mohegan Gaming & Entertainment)
Mohegan Gaming completes financing for first phase of South Korea project
Mohegan Gaming completes financing for first phase of South Korea project
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...