Keith Rubenstein plans to launch $200M South Bronx investment fund

Some of the money would come from $165M sale of Mott Haven sites to Brookfield

Jun.June 11, 2018 03:00 PM

Keith Rubenstein and an aerial of the Bronx (Credit: iStock)

Developer Keith Rubenstein is keeping his money in the South Bronx.

Rubenstein plans to launch a $200 million fund to invest in the South Bronx under the “opportunity zone” provision in the new federal tax law, he said. The portion of the law is meant to encourage private investment in rural communities and low-income urban neighborhoods, and New York’s Empire State Development has recommended large portions of the South Bronx for this designation.

Rubenstein plans to contribute 10 percent, or $20 million, to the fund himself and raise the rest from outside investors. He said the fund would largely support small businesses and new real estate projects in the South Bronx.

“I consider myself to be pretty well-versed in a lot of opportunities in the South Bronx,” he said, “and that’s what we’re going to focus on.”

Part of the funding would come from Rubenstein and the Chetrit Group’s $165 million sale of 101 Lincoln Avenue and 2401 Third Avenue to Brookfield Property Partners earlier this year. The partners had planned to construct seven buildings with 1,300 market-rate rental units on the sites, and the project was expected to cost around $600 million.

Although the development was Rubenstein’s best-known project in the South Bronx, he has also helped open local businesses in the neighborhood such as the Italian restaurant Nobodys Pizza and the café Filtered Coffee. He told The Real Deal at the time of the deal with Brookfield that he would continue working in the neighborhood.

Related Articles

1065-1075 Gerard Avenue in the Bronx 

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

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

US Steel’s sprawling South Works site is about the size of Downtown Chicago. At left, Common, who wants to partner with developers on a mixed-use entertainment district there, and Dan McCaffery, whose vision for a 13,000-home community fizzled out. (Credit: Common by Paras Griffin/Getty Images; McCaffery via McCaffery Interests; aerial by Cushman & Wakefield)

South Works, the 415-acre “magnificent property,” is Chicago’s biggest development opportunity

Miki Naftali, Steven Witkoff and Ryan Freedman

TRD Talks: How developers are contending with coronavirus

New York City Comptroller Scott Stringer (Credit: Andrew Burton/Getty Images, iStock)

Coronavirus will cost city billions in tax revenue: comptroller

Taxes would rise for owners of Manhattan mansions and penthouses, but the biggest shock would be on homeowners in Brooklyn neighborhoods (Credit: Pixabay)

City’s property tax overhaul would increase burden for single-family homeowners

From the top: 1600 Macombs Road, 625 Brook Avenue and 2082 Boston Road in the Bronx (Credit: Google Maps)

The top 10 biggest real estate projects coming to NYC