Bronx Multifamily Trades for Nearly $86M

NEW YORK CITY—A 17-building multifamily portfolio in the Morrisania section of the Bronx has been sold for $85.5 million.

The deal, announced by Ariel Property Advisors, involves a 676-unit package called the Morrisania Multifamily Portfolio that also includes one vacant lot. The property was sold by a developer and multifamily operator and was purchased by an affordable housing operator. No other information on the parties in the transaction was released.

Exclusive agents Shimon Shkury, Victor Sozio, Michael A. Tortorici, Scot Hirschfield and Jason M. Gold represented the seller in the deal. Ariel states that the new ownership plans to maintain the affordability of the portfolio, which consists of Project Based Section 8 buildings operating under HAP agreements.

“This is going to be a very strong year for the Bronx, specifically in the multifamily sector, which accounts for more than 80 percent of the total dollar value of the borough's investment property sales,” says Shkury, president of Ariel Property Advisors. “Year-over-year, the dollar volume of multifamily trades in the Bronx has jumped nearly 60% to more than $1.37 billion.”

The 17 buildings total 674,565 gross square feet and are clustered in an area between 165th to 169th streets and Sheridan and Clay avenues.

Sozio, vice president of Ariel Property Advisors, says, “The interest this package generated illustrates the expanded buyer pool for this specific product type. The Morrisania Portfolio presented an ideal opportunity to preserve affordable housing, which is in line with the de Blasio administration's 10-year housing plan.”