Although the pandemic seriously affected the lives of so many Bronx residents, including their financial livelihood, New York City’s affordable housing policy initiatives are in place to handle the challenges that lie ahead for area residents.
We have observed that developers are encouraged by the true opportunities in the North Bronx, and without hesitation, are committed to making significant improvements to this area. Accordingly, the Bronx has become a serious candidate for new construction and development in New York City. Furthermore, there are exciting projects that are moving forward, that can greatly change the development landscape of the North Bronx.
After the first six months of 2020, 1H20, developers were actively purchasing properties in this area, a promising sign of a recovery. In fact, there were six notable sites sold in excess of $1 million dollars and three sites sold in excess of $5 million dollars, which are zoned R8, R7-1 and R6. The intended development for 3054 Villa Avenue in Jerome Park, includes a 14-story residential building which will yield 96,157 square feet designated for 101 residences based on the average unit scope of 952 square feet. Next, at 5278 Post Road, in Fieldston, the developer intends to build a seven story building,. with an estimated 102 units. This development site sold for nearly $8 million dollars.
Active Construction and New Permits being filed
During the second quarter of 2020 (April –June), in the North Bronx, there was in excess of 3.5 million square foot of units under construction and over 700,000 square feet of new construction starts.
1932 Bryant Avenue, West Farms is a 15-story structure which upon completion of construction, will include 319 affordable housing units, approximately 12,000 square feet for commercial-retail use, and a 9,000 square foot community facility.
150 Van Cortlandt Avenue East, located in Bedford Park, is a new apartment development, with affordable housing, currently under construction with an anticipated total of 152 units.
3128 Henry Hudson Parkway, located in Spuyten Duvil is a new condo development currently under construction with an anticipated total of 46 units.
The development located at 1429 East Gun Hill Road in Pelham Gardens, will yield 15,674 square feet, with 11,515 square feet designated for residential space. The building will have 16 residences.
6375 Broadway, North Riverdale, a proposed 7 story, 68-foot-tall development will yield 66,320 square feet, with 45,647 square feet designated for residential space. The building will have 77 residences, with an average unit size of 592 square feet.
Development Sites in the North Bronx are Reasonably Priced in Comparison with the other Boroughs, and Offer Attractive Government Incentives
There has not been a better time to purchase development sites in the North Bronx. First, there is an exhaustive list of government incentives in the North Bronx, that are ripe for “post pandemic” development including Inclusionary Housing programs, Fresh Zones, the AIRS program, Opportunity Zones, the Affordable New York Program (formerly 421-A), New York City Open Door Program and Housing New York 2.0.
Next, our review of 2019 North Bronx Development Comparables, indicate that development sites are reasonably priced (as compared to some of the neighboring boroughs) and therefore, development rewards may be substantial, now and over the long term.
Exciting New Projects for the North Bronx are Moving Forward
Property owner, Dynamic Star’s $3.5 billion mixeduse Fordham Landing project, will be an approximately 495,000 Square feet project., The Project will include affordable, market rate, and student housing, a life sciences research center with supporting office space, local and waterfront-related retail, an e-sports arena and hotel, a public school, a community and senior center. Of particular note, this Property is in an Opportunity Zone, and is expected to drive future development opportunities in the surrounding neighborhood, who want to be part of the revitalization of this area.
Next, the Innovo Group has recently secured $305 million in financing to fund construction for the Pelham Bay based 968,000 square foot waterfront logistics and distributions center. Since the development is expected to debut in the first quarter 2022, it is expected that developers will be canvassing the surrounding areas for residential and retail development site opportunities necessary to accommodate, the influx of new residents to the area.
The North Bronx has a lot to offer, both at the present time amongst the current financial challenges, and in the future with major development projects that will revitalize the area.