Transwestern Commercial Services has brokered a 98,000 s/f deal for Zeta Charter Schools that will make it the anchor of 425 Westchester Ave., a planned mixed-use development by Starwood Capital Group and AB Capstone in the South Bronx.
The new school, Zeta Bronx 1, will house elementary and middle school classrooms, as well as teacher and administrative office space. The school will move from its temporary Bronx location at 222 Alexander Ave. to begin the 2021-2022 school year.
Transwestern Partner Lindsay Ornstein, Managing Director and National Nonprofit Advisory Services Leader Stephen Powers, and Vice President Thomas Hines provided occupier representation services for the nonprofit school.
Newmark Knight Frank provided capital markets services for AB Capstone. Building ownership was represented internally in the Zeta Charter Schools deal negotiations.
“Zeta Charter Schools is deeply dedicated to the South Bronx and supporting the children and families of the community,” said Emily A. Kim, CEO, Zeta Charter Schools. “Zeta Bronx 1 will feature state-of-the-art facilities and provide an atmosphere that will enable us to build and support lifelong learners and the next generation of innovators.”
Zeta Charter Schools will anchor the 10-story, 147,000-square-foot building, and Starwood Capital Group and AB Capstone will begin construction of the building this month. The development will also include office space, ground-floor retail and 10,000 square feet of outdoor space.
“We are thrilled to have advised Zeta Charter Schools in securing a new home in the South Bronx,” said Ornstein. “With a creative deal structure and a world-class development team, the school is able to strategically leverage its real estate asset to support its mission. Zeta Bronx 1 is well positioned to serve generations of children and families in the community.”
The Zeta Charter School commitment was structured as a leasehold condominium similar to the struture Transwestern employed for Neighborhood Charter School’s 58,000-square-foot, K-8 school in the Bronx. The leasehold condominium structure offers significant savings to nonprofits by eliminating real estate tax obligations.