Hornig Capital in contract for $31M South Bronx office building

Purchase seen as another sign that Mott Haven market is heating up

New York /
Nov.November 11, 2014 01:15 PM

A Long Island-based investor is in contract to buy a large office building in a gentrifying area in the South Bronx for $31 million, The Real Deal has learned.

Hornig Capital Partners signed a contract last week in an off-market deal to buy the 175,000-square-foot, Class C office building at 2417 Third Avenue in the borough’s Mott Haven section, a source close to the negotiations confirmed. Madhatters Realty is the seller of the property.

The eight-story building, constructed in 1944, is fully leased to small companies including graphic designers, healthcare-service firms and small manufacturers. Madhatters is also a tenant.

The building sits steps from the Harlem River waterfront in an area that was rezoned in 2005 to allow for residential use in a manufacturing zone. A few years later the owners of a five-story building next door to 2417 Third Avenue received permits to convert that property into 46 rental apartments

Other developments in the area include a planned 84-key hotel on the northern side of the Major Deegan Expressway and the landmarked Clock Tower building, where one-bedrooms rent for about $1,700 a month.

Broker Matthew Green of Bohemia Realty Group regularly shows at the Clock Tower and said the neighborhood is on the upswing.

“Two years ago it was still difficult to bring clients over to Mott Haven,” he said. “They were skeptical and scared. They didn’t know where it was and they thought it was really dangerous.”

“No longer do I have to drag people there,” he added.

Bronx Borough President Ruben Diaz Jr. has also pitched a plan to redevelop a nearby stretch of the waterfront that the city rezoned in 2009 for mixed-use development — a similar idea to Brooklyn Bridge Park. The project calls for $500 million in investment, some 1,500 residential units and 865,000 square feet of commercial space.

Hornig, which could not be immediately reached for comment, was reportedly in contract to buy a $36 million development site in Bushwick earlier this year.


Related Articles

arrow_forward_ios
1065-1075 Gerard Avenue in the Bronx 
Prana pays Related $36M in Bronx multifamily play
Prana pays Related $36M in Bronx multifamily play
448 East 143rd Street in the Bronx (Credit: Google Maps)
Private developer’s NYCHA project in Mott Haven lands $79M in financing
Private developer’s NYCHA project in Mott Haven lands $79M in financing
1159 and 1184 River Avenue with Maddd Equities' Jorge Madruga (left) and Joy Construction's Eli Weiss (right) (Credit: Google Maps)
Maddd Equities, Joy Construction score $64M for massive Bronx project
Maddd Equities, Joy Construction score $64M for massive Bronx project
Maddd Equities, Joy Construction’s South Bronx housing dev scores $140M financing
Maddd Equities, Joy Construction’s South Bronx housing dev scores $140M financing
Maddd Equities, Joy Construction’s South Bronx housing dev scores $140M financing
Developers make big resi bet on Mott Haven
Developers make big resi bet on Mott Haven
Developers make big resi bet on Mott Haven
Buyer scoops up Bronx ice cream site; Jeff Sutton sells in Brooklyn
Buyer scoops up Bronx ice cream site; Jeff Sutton sells in Brooklyn
Buyer scoops up Bronx ice cream site; Jeff Sutton sells in Brooklyn
NYCHA approves $60M, 101-unit affordable development in Bronx
NYCHA approves $60M, 101-unit affordable development in Bronx
NYCHA approves $60M, 101-unit affordable development in Bronx
Apple to open first Bronx store, 11 location in New York
Apple to open first Bronx store, 11th location in New York
Apple to open first Bronx store, 11th location in New York
arrow_forward_ios

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

Loading...