What’s Happening in the Bronx Is the Condo Boom About to Cross the Harlem River?

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The Bronx may not be known as NYC's most glamorous borough, but a drive through the city's northernmost section reveals signs of renewal and development that would've been almost unthinkable just a few years ago. From new apartment construction along the Grand Concourse across from Poe Park, to the residential conversion of existing loft buildings in Mott Haven, the number of cranes and sidewalk construction-site sheds point to big changes afoot. Curbed NY ran an article online in July 2018 detailing 14 major construction projects either planned or underway south of the Cross Bronx Expressway, long considered to be the northern boundary of what was once derisively known as the ‘South Bronx.’

Rent, or Own?

There has been some condominium development in the borough, explains Jason Gold, who leads the Bronx sales team for Ariel Property Advisors, a real estate investment advisory and brokerage firm based in Manhattan. “There is 221 East 138th Street, which was built as condos, and is selling at $700-$750 per square-foot. Another nearby condo project by Rosenberg Properties is slated to begin shortly.” The rest of the condominium market is in Riverdale, which, while technically still the Bronx, is not quite Bronx-Bronx, says Gold. Aside from those two projects, “Most of the new construction going on is for rentals,” he continues. “These new buildings will be for the most part at market rate. The developers are major players.” Gold says their entry into the market indicates a rising confidence in the Bronx as a market overall.

That said, “The potential for condos in the Bronx is not there yet,” says Michael Wengroff, a former lender with several major banking institutions and a developer of affordable housing in the borough. “Gentrification has not arrived in the same way as it has in other boroughs. It always seems close, but it doesn’t quite get there.” The area around 138th Street, where the two condominium developments mentioned above are located, has been the most prone to gentrification, explains Wengroff. Another well-known condominium property in Mott Haven is Bronx Bricks, where sales began in 2007 – but again, the bulk of this new wave of residential development seems to be rental, rather than condo or co-op.

One factor affecting developers' decision to build rentals rather than condominiums is purely economic. The long-term profit from rentals is simply higher than from condominiums. Several factors are at play here, including tax considerations upon sale of the units, and how they are treated under federal income tax rules – as well as the lack of serious disparity between market rents and rents for affordable housing. Wengroff points out that they are nearly the same, encouraging developers to build rental housing for long-term hold and investment.

The Co-op Market

There is indeed a market for co-op apartments and resales in the Bronx – a fact that may come as a surprise to many. Co-op City, located in the northeast part of the borough, is one of the largest and most successful co-op communities in the country. There are many other co-op buildings along Pelham Parkway and in the Norwood section of the north Bronx adjacent to the east side of Van Cortlandt Park. In addition, the Bronx is home to the largest collection of Art Deco apartment buildings in the world, many of the located in a designated historic district that runs from 149th Street to 167th Street between the Grand Concourse and Walton Avenue.

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4 Comments

  • The Bronx will never gentrify, and Mott Haven or Port Morris will not be the next Williamsburg, this is an authentic borough with rich history and a lot of problems. The city abandoned The Bronx in the 70's and has remained distant from it, why? All the social problems. They need to be addressed. It will take at least 10 years to clean up the issues and counting. Take a walk around 149th Street & 3rd Avenue and you will get a glimpse of the social issues first hand. Good luck!
  • The Bronx will never gentrify like Brooklyn or Queens. Banks will have to be insane to lend money to these developers, we have a strong strategy in activism and action. These developers will lose their money betting on The Bronx. If you have 15 years to make a profit, then go for it. The Bronx will not gentrify anytime soon. The new businesses in Port Morris and Mott Haven are not making huge profits, they are so far away from making a return on their investments, it will be at least 15 years and by then they will be long gone, new businesses will replace them.
  • Most the construction in the Bronx is TAX CREDIT , subsidized properties. Under the new regulations rental properties will be uneconomical. Subsidies properties will be what the Bronx is known for. The state has destroyed rental properties and the full effect will be felt within a year. Watch property values decline. small contractors will not survive.
  • They said the same thing about Brooklyn neighborhoods Bed Sty, Red Hook, Bushwick etc..... Dont sleep on the Bronx...gentrification is coming. 10 years will come and go quickly.