The Real Deal New York

Gilbane inks $49M 99-year lease at pair of Bronx sites

Company landed lease for 2251 Webster Avenue and 2244 Tiebout Avenue
By Eddie Small | November 07, 2018 02:47PM

From left: 2251 Webster Avenue and 2244 Tiebout Avenue (Credit: Google Maps)

Gilbane Development Company has signed a $49.1 million lease at two adjacent city-owned sites in the Bronx.

New York City Housing Authority is leasing 2251 Webster Avenue and 2244 Tiebout Avenue to Gilbane for 99 years, according to records filed with the city Wednesday. The Webster Avenue parcel is currently vacant, while the one on Tiebout Avenue houses a 10-story, 312-unit apartment building.

The properties appear to be part of NYCHA’s Twin Parks West project, which according to city documents calls for the creation of between 150 and 200 new affordable apartments in partnership with the city’s Department of Housing Preservation and Development.

In January, NYCHA announced it had chosen Gilbane, Dantes Partners and the Kraus Organization to partake in a separate initiative meant to update and preserve hundreds of affordable units — Twin Parks also being a part of that. Renovations to the existing units in the Webster Avenue building are being done through the federal Rental Assistance Demonstration program, according to NYCHA.

Gilbane said in a statement that it is planning to undertake “a significant renovation of the property that will include upgrading apartment kitchens, bathrooms, flooring, lighting fixtures and new windows as well as property upgrades including façade repairs, roof repairs, renovation of community spaces, and site improvements including new play equipment and landscaping.”

Gilbane is funding its ground lease acquisition with a $59.2 million loan from KeyBank.

Nearby, UA Builders recently filed plans for a 91-unit, 13-story building at 2047 Ryer Avenue that will span about 61,000 square feet.