The Real Deal New York

Lightstone nears deal for Bronx portfolio

Developer negotiating to buy 223 units close to Pelham Parkway
By Mark Maurer | May 16, 2018 08:00AM

Mitchell Hochberg and the Bronx portfolio

The Lightstone Group is making a push into the Bronx’s multifamily market with another multi-building purchase.

The developer is about to sign a hard contract to pick up a 223-unit package near the Pelham Parkway in the Bronx’s northeast neighborhood Bronxdale for $53 million, sources told The Real Deal.

The package, billed in marketing materials as the “Pelham Parkway Portfolio,” spans almost 234,000 square feet. The prewar elevator buildings, located in a three-block radius, have the addresses of 2197-2199 and 2198 Cruger Avenue and 2180 Bronx Park East.

Marketing materials show the portfolio generates about $3.6 million in gross revenue and has an estimated net operating income of $1.5 million.

The owner, Bronx River Management Corporation, put the buildings on the market earlier this year with an asking price of $55 million. A Cushman & Wakefield team led by Bob Knakal, Robert Shapiro and Jonathan Squires is representing the seller in the deal.

The brokers declined to comment and Lightstone could not be reached.

Property records show Ben Shaoul’s Magnum Real Estate Group signed a contract for the buildings in April, but sources say he is no longer involved.

Just two months ago, Lightstone, led by David Lichtenstein and Mitchell Hochberg, closed on the $51 million purchase of four Bronx buildings from Belmar Realty Corp.

The Pelham portfolio deal’s price per unit would be around $238,000. North Bronx multifamily deals in 2017 and 2018 so far have averaged $230,000 per door, according to Hodges Ward Elliott data. Deals on the higher end include the sales of 2408 and 2420 Webster Avenue in March for $273,529 per unit and 1835 Needham Avenue in December for $256,383 per unit.