Developers and real estate speculators for years have allowed their imaginations to be captured by the possibilities available in the South Bronx, specifically Mott Haven.
The historically working-class neighborhood, bordered by the Harlem River with aston- ishing views of Manhattan, has been flush with construction activity and vacant ground- floor retail spaces beneath soon-to-be-opened luxury housing developments.
“We’re certain that we’re seeing the beginnings of the next Williamsburg here,” Tri- State Commercial Realty’s Bronx Vice President Dov Bleichtold the New York Business Journal.
Developers, large and small, have also bought into the craze.
Brookfield Properties is undergoing a two-phase project bringing 1,380 Class A multifamily units to the neighbor- hood with a total private investment of $950 million. This marks one of the largest private investments in the Bronx to date, Brookfield Properties says.
And Chess Builders developed The Arches, a 430-unit luxu- ry multifamily building at 224 E. 135th St. that is being leased by EXR Realty. Neither Chess nor EXR responded to requests for comment.
Moshik Regev, managing partner of 5 Boro Real Estate Partners, celebrates a renewed interest in the borough that he feels is often forgotten or underestimated. Nonetheless, he says, many of these projects don’t have the best timing.
“The Bronx has been the city’s forgotten borough for real estate for years. It was always viewed as being the place for putting only affordable or public housing units,” Regev told the New York Business Journal. “All of these projects are great and exciting, but the community just isn’t ready for it.”
5 Boro Real Estate Partners purchased a single-story corner building located at 2970 Third Ave. in October 2021 with plans to convert the space into a 110,000-square-foot mixed use building offering commercial and retail space.
The site, situated two miles from the Third Avenue Bridge and 30 minutes by subway to Grand Central Terminal in Midtown East, possesses attributes that are attractive to those searching for an affordable neighborhood with a reasonable commute into Man- hattan.
Nonetheless, Regev decided against bringing multifamily units to the project despite having the capability to do so, citing challenges facing the neighborhood, primarily due to high poverty rates and crime.
Some 36% of Mott Haven residents live below the federal poverty line, compared to 17% across the entire city, according to the U.S. Census Bureau. Double-digit-percentage in- creases in crime have been reported across all categories over the past two years, except rape, which has reduced by nearly 25%, and murder, which has seen a triple-digit- percentage increase, according to data from the New York Police Department.
“Mott Haven is still a struggling community,” Regev said. “There’s so many issues that we must address before we begin developing multifamily units here with the most im- portant being public safety.”
The map below shows the location of Brookfiled Properties’ and Chess Builders’ large- scale mixed-use developments, Third at Bankside and The Arches, respectively, which have arrived in the Mott Haven section of the Bronx. Developers believe that the neigh- borhood’s proximity to the Harlem River, Manhattan skyline views and speedy access to Manhattan via the 138th Street-Grand Concourse subway station will make it attractive to prospective tenants. 5 Boro Real Estate Partners’ project at Third Avenue and E. 135th Street, managed by Moshik Regev, is also nearby.
Sabrina Kanner, Brookfield’s executive vice president, argues that Brookfield’s invest- ment in the neighborhood is not a form of displacement, but rather can help improve quality of life in the South Bronx.
“Every borough needs a full range of offerings including Class A space that becomes an economic driver for the neighborhood,” Kanner told the New York Business Journal.
Third at Bankside, located at 2401 Third Ave. — the first phase of Brookfield’s two- phase project — is completed and available for lease with a total of 458 units. As of ear- lier this month, 21 units have been leased with Brookfield offering three months of free rent on all studios and two months of free rent on all other floor plans.
Discounting, Kanner says, is standard practice for Brookfield Properties as they open new buildings. “It’s a way to grab attention and let people know our doors are open, es- pecially after months of watching the project under construction,” she said.
At the time of acquisition, the development site was a waterfront-facing brownfield site that provided no access to residents. Alongside multifamily units, Brookfield is con- structing a waterfront park open to the public similar to their previously developed Greenpoint Landing Esplande.
These actions and investments, Brookfield Properties said, dismisses the notion that residents are being displaced or that needs of the broader community are being ignored.
Brookfield’s retail strategy, Kanner said, takes the neighborhood’s needs into considera- tion.
Third at Bankside’s sole retail space has been secured by 40-year resident Sam Brooks, founder of the Mott Haven Historic District Association, who is leading the Empower- ment Center, a workforce development center, from the space. The space is expected to open within the next few weeks.
“The Empowerment Center is such a great centerpiece that allows us yet another way to connect to the community, open our doors to them and empower them,” Kanner said.
Furthermore, Brookfield Properties has made hiring Bronx residents for the project’s construction a priority. “Brookfield’s social inclusion team held job fairs, attended com- munity events, and worked diligently to bring 70 net new jobs to the Bronx,” Kanner said.
Kanner said that interest for Bankside has come primarily from current Bronx residents showing their success in obtaining buy-in from the local community.
This should be of no surprise, Regev said, as the neighborhood’s challenges could make selling the neighborhood to more affluent renters escaping higher rents in Manhattan difficult.
“People aren’t going to pay Manhattan prices to be front and center with all of the prob- lems facing the neighborhood right now,” Regev said. “It doesn’t seem like the right time to me, but let’s hope that I’m wrong.”
Source: MOTT HAVEN’S FRESH LOOK
