By Linda O’Flanagan
A team from Besen & Associates has closed on a block-busting North Bronx deal.
Amit Doshi, Lynda Blumberg, and Ronnie Shaban negotiated the $8.75 million sale of 2150 Wallace Avenue, an elevatored apartment building with 71 units and five stores near Morris Park and the Pelham Parkway subway station.
A 1920s six-story brick building, the apartments range from studios to two-bedroom units.
According to Doshi, executive director at Besen, the deal works out at $115,000 per unit, among the highest prices achieved in the North Bronx in recent years and indicative of a very healthy local market.
“North Bronx properties typically trade at a premium to other areas of the Bronx,” said Doshi, who has brokered the sale of over 700 buildings in the borough. “That can translate to one to two multiples of gross rent, and up to $40,000 on a price per unit basis.
“Velocity of transactions gained significant momentum in 2011 and continues to move along thus far this year. Areas such as Pelham Parkway, Riverdale, Woodlawn, Kingsbridge, Wakefield, Bedford Park offer quality housing and buildings that are still sought after as investments.”
The average rent on Wallace Avenue is $1,145, according to Citi Habitats, a leading New York residential brokerage. With a vacancy rate of 4.7%, lower than three quarters of U.S. neighborhoods, “the market has no-where to go expect up,” according Citi Habitats president Gary Malin.
“Rents in New York in general are expected to increase. The Bronx is no exception,” he said.
The same Besen team also sold 675 East 233rd Street, an apartment building located between Carpenter Avenue and White Plains Road.
That five-story walkup with 49 studio-to-three-bedroom apartments, sold for $3.85 million, “a smart buy” according to Blumberg, who along with Doshi represented the seller. “At under seven times rent roll and $78,000 per unit, that’s a good value for a North Bronx asset such as this,” the broker added.
Ronnie Shaban represented both of the private investors who bought the properties. He said, “2150 Wallace Avenue was attractive to the purchaser for several reasons, starting with its Pelham Parkway corner location that also has 100 feet of frontage on Lydig Avenue,.
“It was held by long-term owners who made numerous upgrades. The buyer recognized the value of this asset and was comfortable paying a premium.”
Seymour I. Hurwitz also represented the purchaser, 2150 Laxmi Nagar LLC, and Lawrence S. Rabine Esq. who represented the seller of 2150 Wallace Avenue. Hurwitz also represented the buyer of 675 East 23rd Street, 233 Sita LLC, while Tratner Molloy LLP represented the seller.