When someone mentions The Bronx they usually think of Yankee Stadium, the Bronx Zoo or the Botanical Gardens because they are all popular tourist destinations. When it comes to real estate opportunities, this borough has had a much lower profile than its famous neighboring borough, Manhattan. Since the late 1980’s, however, there has been a significant amount of development which was first brought on by the city’s “Ten-Year Housing Plan”. In 2006, The New York Times reported that “construction cranes have become the borough’s new visual metaphor, replacing the window decals of the 1980s in which pictures of potted plants and drawn curtains were placed in the windows of abandoned buildings. In addition, there is a revitalization of the existing housing market in areas such as Hunts Point, the Lower Concourse, and the neighborhoods surrounding the Third Avenue Bridge as people have been buying apartments and renovating them. There are also several boutique and chain hotels that have opened in recent years.
According to some reports, several Bronx neighborhoods saw double-digit price increases in 2017. Some of those who have been priced out of Manhattan and Brooklyn have increasingly looked for homes in The Bronx due to the easy accessibility to Manhattan. According to Property Shark the elevated housing demand in the neighborhoods around the boulevard pushed the median home sale price to increase 68% in just 5 years—from 2014 to 2018. The housing market near the Grand Concourse has surged in the past 5 years, including neighborhoods such as Mott Haven and Bedford Park. Concourse Village has an authentic NYC feel to it, with plenty of bars, restaurants, coffee shops, and parks. The crime rate has dropped over the years, and public schools in the neighborhood have an above-average rating.
Sharestates has been busy funding loans in The Bronx and formed many great relationships there. One such recently funded property was a multifamily building located in the South Bronx neighborhood Mott Haven. Mott Haven is primarily a residential neighborhood that has been undergoing a gradual reinvention, with restaurants opening and people coming in and rehabilitating buildings and/or building new ones. The borrower is planning on doing rehab work to add value. Rehab includes a complete overhaul including but not limited to new structural work, new HVAC system, all new electrical systems, iron & steel work, all new drywall, and new plumbing. When rehab is complete the property and or units will be leased out to tenants.
- Loan Amount – $3,235,000
- Rehab Budget – $2,250,000
- Loan Type – Purchase
- Purchase Price – $2,100,000
Another recently funded property was a multifamily property located in the Wakefield section of the Bronx. Wakefield is a middle-class section of the northern part of the borough and borders Westchester County to the north. Though Wakefield is about an hour commute via public transportation, it has a bit of a suburban feel to it which is attractive to its residents. The borrower has approved plans to convert the property into additional residential units and add square footage. With plans to rehabilitate this property, there will be a new plumbing system put in, electrical, windows, and repairs on elevators and much more. The borrower plans on selling the property once the project is complete.
- Loan amount – $4,945,000
- Rehab Budget – $2,510,000
- Loan Type – Refinance
The last recently funded project we’ll highlight was a residential property located in the East Tremont neighborhood of the Bronx. East Tremont is in the western part of the borough and is also a very urban neighborhood made up of mostly apartment complexes and high rise apartment buildings. Commuting to midtown Manhattan can be done by way of the subway or Metro-North railroad. The borrower plans on doing rehab work to increase the value of the property and then stabilize the investment.
- Loan Amount – $542,000
- Property Type – Residential
- Loan Type – Refinance
To see more loans that Sharestates has funded in the Bronx or inquire about funding your next loan click below.