School to avoid paying property taxes, conversion costs for $20M Bronx project

Neighborhood Charter School signs 45-year lease for 411 Wales Avenue in Mott Haven

TRD New York /
May.May 17, 2018 03:30 PM

411 Wales Avenue

A new charter school is coming to the South Bronx under a 45-year lease deal that will let it avoid paying both conversion costs and property taxes.

Neighborhood Charter School, based in Harlem, will open its new Bronx location at 411 Wales Avenue in Mott Haven, according to Crain’s. The site is home to a warehouse that will undergo a more than $20 million redevelopment to convert it into a school.

The nonprofit Civic Builders will pay to develop the space and lease it to Neighborhood Charter School for rents in the $30s per square foot. Civic Builders controls the property through a leasehold condominium, meaning it owns the building as a condo unit. This allows it to avoid paying property taxes, thanks to its nonprofit status.

Pinnacle Realty of New York’s Decio Baio, Fred Stein and Ariel Castellanos, along with Stephen Powers and Lindsay Ornstein of Transwestern, brokered the deal.

The city’s Board of Standards and Appeals approved a zoning change in late April allowing the site to become a school, as it was previously zoned just for manufacturing. Work started soon after and should be done in about two years.

The school will span 58,000 square feet and have classrooms for 630 students in kindergarten through eighth grade. [Crain’s]Eddie Small

Related Articles

As the years go by_A look back at 17 years of real estate history

A look back at 17 years of real estate history

250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

Neir’s Tavern (Credit: Google Maps)

City’s oldest bar, of “Goodfellas” fame, gets last-minute lifeline

Neir's Tavern (Credit: Google Maps)

Landlord to bar owner: You don’t have to go home but you can’t stay here

729 Seventh Avenue (Credit: Google Maps)

Lawyer argued façade was safe 3 months before fatal accident

Bill Ackman, LeBron James, and Arnold Schwarzenegger with 787 11th Avenue (Credit: Google Maps and Getty Images)

Celebrity property group caught in $11M construction dispute

Renderings of The William Vale and Denizen Bushwick (Credit: iStock)

All Year’s rating outlook turns negative as bondholders reject two amendments