Himmel + Meringoff Properties and Square Mile Capital Management LLC have formed a joint venture to acquire 1601 Bronxdale Avenue in the Bronx.
Purchased in a quietly marketed deal for $89 million, the two-story, 7.5 acre property comprises 305,000 square feet of mostly industrial/distribution space with significant conjoining office and retail space.
In a joint statement, Himmel + Meringoff co-managing partners, Stephen J. Meringoff and Leslie Himmel commented: “This deal represents the launch of a new active acquisition program for H+M. With a deep war chest of cash accumulated through several years of successful refinancings, we are planning to grow our exposure to the outer boroughs by investing in properties where we can add value as we have proven time and again throughout Manhattan but also in Long Island City where we have owned mixed-use/industrial properties dating back over 30 years.”
“The ongoing expansion of New York City economic activity beyond Manhattan and well into the surrounding submarkets, is creating attractive opportunities for real estate investment firms like ours,” said Square Mile Capital CEO Craig Solomon. “In this case, we intend to take advantage of increased local market demand for distribution facilities. And we are especially pleased to be able to partner with Steve Meringoff and Leslie Himmel, with whom we have enjoyed a longstanding successful business relationship. Their firm, Himmel + Meringoff, is an outstanding real estate operator with deep New York roots, and we look forward to working closely together to maximize the long term value of this property.”
Square Mile Capital Managing Director Jesse Goepel added, “The ongoing evolution of retailing, along with rapid changes to underlying supply/demand dynamics, are driving investor and tenant demand for urban infill industrial assets. At Square Mile Capital, we recognize the convergence of these factors and have made several recent investments in New York City and elsewhere that aim to capitalize on these favorable long term trends.”
The new ownership anticipates making improvements to the property to take full advantage of its prime location at the crossroads of New York City, Long Island, Connecticut and New Jersey. 1601 Bronxdale Avenue is located just minutes from several major interstate arteries and six miles from Manhattan. The property is adjacent to East Tremont Avenue, a main thoroughfare, and borders the densely populated Parkchester neighborhood as well as the planned Metro-North station at Parkchester / Van Nest. Current tenants include Consolidated Edison, New York Sports Club and auto parts distributor, Parts Authority.
Pinnacle Realty represented the seller in this transaction.