The Real Deal New York

South Bronx multifamily portfolio trades for $24M

M.Z. Partners LLC is listed as the seller, the buyer is anonymous
By David Jeans | January 04, 2019 04:33PM

506, 514 and 520 Tinton Avenue (Credit: Google Images)

UPDATED, Jan. 7, 3:10 p.m.: A portfolio of apartment buildings in the Bronx sold for $23.75 million, amid a flurry of real estate sales in the borough this week.

M.Z. Partners LLC, which appears to be linked to a Sid Borenstein, sold three Mott Haven buildings at 506, 514 and 520 Tinton Avenue, according to property filings. The anonymous buyers, which share the same address in Lakewood, New Jersey, are 520 Tinton L.P., 506 Tinton L.P. and 514 Tinton L.P.

Meridian Capital Group’s Mark Steinmetz negotiated the sale for the properties, which traded at a 5.5 percent cap rate and an 11.5x rent multiple.

The brokerage’s Abe Hirsch and Jacob Schmuckler arranged acquisition financing for the buyer, which consisted of three seven-year Freddie Mac loans totaling $16.5 million with an interest rate of 4.4 percent.

The rental buildings, which were built about 100 years ago and are subject to a J-51 tax abatement, have a combined 140 units, with rentals on the market for about $1,700 a month. The buyers paid about $171,000 per apartment.

There has been a rumbling of real estate sales activity in the South Bronx in recent weeks. This week, Camber Property Group, Belveron Partners and the city’s Department of Housing Preservation and Development bought an 11-building, 343-unit property portfolio in West Farms for $75 million. In another recent deal, Turnbridge Equities purchased a 10-acre industrial site at 980 East 149th Street for $56 million.

Update: This story has been updated to include further details about the sale and financing.