The Real Deal just reported that the 175,000 square foot loft building 2417 Third Avenue — just across from the Mott Haven Bar and Grill — is under contract for $31 million with Hornig Capital.
2417 Third Avenue sits right within the southern portion of Magnusson Architecture and Planning’s proposed development plan for the Special Harlem River Waterfront District which we reported on back in March of this year.
According to The Real Deal, the property is currently 100% occupied with commercial tenants but who knows what will happen as the area continues to feel gentrification’s touch. Port Morris already has the highest rents in the South Bronx with rents averaging at about $2,100/month according to data from LiveLovely.com (2nd highest in all of The Bronx surpassing Riverdale and second only to City Island).
With all the hype about the Special Harlem River Waterfront District, one can only imagine that this is just the beginnings of speculative real estate transactions in the area, after all, this transaction was off-market. Off-market deals and transactions are sales which aren’t publicly listed to the open market and are usually spread by word of mouth to parties who may be interested in acquiring such properties. The New York Times wrote last year that such, “off-market tactics appear to be on the rise in major markets where there is a scarcity of inventory…”
Will this transaction be followed by others? With so many similar properties in the Lower Concourse Rezoning District, it will be only a matter of time before everyone is ready to sell and then what?
Let us know your thoughts on this in the comments section below.
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