OZ Development Hits the Market in Prime Bronx Neighborhood
Developers have the Bronx on their radar now with the OZ tax benefits and an influx of Fordham University students.
NEW YORK CITY-Cushman & Wakefield has begun marketing 773 Grote St., a 23,021-square-foot residential development site in the up-and-coming Belmont area of the Bronx. And the sale is expected to undergo an intense bid process for the site’s Opportunity Zone benefits and proximity to Fordham University, Jonathan Squires, senior director of New York middle-market investment sales at the firm, tells GlobeSt.com.
The Bronx may not have been on developers’ radar over the past several years, but now with the Opportunity Zones federal tax benefits deferring capital gain taxes over allotted time periods, and an influx of Fordham University students, the area has seen high rent growth and new construction, which is likely to continue to grow, said Squires, who is marketing the property.
“A significant amount of new construction in the area is a draw for these individuals, they want what’s new,” he said. “The students are also willing to pay considerably more than what the surrounding area typically sees, which aligns with the fact that they want to live in recently-constructed buildings.”
Situated on Grote Street between Prospect Avenue and Southern Boulevard in the Belmont submarket, the property that it is in a federally-approved Opportunity Zone, in what is an up-and-coming area, will drive high demand and allow future owners to capitalize on significant tax benefits. A surfeit of Opportunity Zone funds is expected to submit their bids, and an estimated total of 20 to 25 offers could come through for the asset, according to Squires.
Aside from Fordham University, other major Bronx institutions are in proximity to 773 Grote St., including St. Barnabas Hospital, The Bronx Zoo and Botanical Garden. Walking distance of the property is 182nd-183rd Street Subway Station with access to the B and D trains, and multiple bus routes snaking the neighborhood.
“The Bronx, in general, may not be the initial place that an individual moving to New York thinks to look for an apartment, but the area has a plethora of benefits and many neighborhoods will continue to pop up,” Squires said.