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City backs out of sale after Transcon fails to make payment

Art storage firm agreed to pay $11M for the 140K sf South Bronx warehouse in October

From left: 131 Walnut Avenue in Hunt's Point and DCAS commissioner Lisette Camilo
From left: 131 Walnut Avenue in Hunt's Point and DCAS commissioner Lisette Camilo

The Department of Citywide Administrative Services canceled the planned sale of a 140,000-square-foot South Bronx warehouse after the agreed buyer failed to make a payment.

The move was a response to the failure by Transcon International – the art storage firm that won the property at auction last October agreeing to pay $11 million – to make required balance payments on the property, located at 131 Walnut Avenue.

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The payments due 45 days after the auction, which took place Oct. 28, 2015, Politico reported.

Transcon currently subleases the property from the nonprofit development firm SoBro, which leases it from the city, which foreclosed on its former owner Sol Goldman in 1978.

Representatives of the art storage firm said last month it was ready to close on the property, but couldn’t afford the late fees. It asked the city waive them. Instead, DCAS decided to cancel the sale and refund Transcon’s $2.2 million down payment. [Politico]Ariel Stulberg

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