Shainberg, Mehra and Doshi of Besen & Associates close $11 million sale of 70,500 s/f elevator building; Zervoudis and Sica of Galaxy General sell to Weinberg of GF Financial

 

 

 

Bronx, NY Jonathan Shainberg, Shallini Mehra, and Amit Doshi of Besen & Associates have arranged the sale of 1422 Nelson Avenue located in the Highbridge neighborhood. This 70,500 s/f, six-story, elevator building consists of 72 large apartments. The sellers were Steve Zervoudis and Richard Sica of Galaxy General; the buyer was Morris Weinberg of GF Financial. 

This 150-ft. wide property sold for $11 million, and equates to $152,777 per unit, $156 per s/f and a 4.2% capitalization rate.

“The property operates under a regulatory agreement, governed by the LIHTC (Low-Income Housing Tax Credit) program. It uniquely benefits from a J51-tax exemption that lasts through June 2031, giving the buyer a tax incentive of $600,000 until expiration,” said Shainberg. The transaction offers rental upside with in-place rents averaging $11.10/foot, while market rents range north of $20 per s/f. 

The sellers were long-term owners, having acquired the building in 1992 for $700,000.

“The team was able to generate multiple offers in a less than 30 days for this off-market opportunity. The building was sold to an experienced operator with an already established Bronx portfolio,” said Mehra. 

The property is south of the Cross Bronx Expressway and near the Grand Concourse.

“This transaction is our second sale this month in Highbridge, having previously sold 1110 Anderson Ave., a 44-unit elevator building back in early February for $193,181 per unit and over 14.0x gross rent multiplier,” said Doshi.