March 2, 2016 – New York, NY – The New York office for Hodges Ward Elliott (“HWE”), the world’s leading independent hotel brokerage which expanded last year into commercial property sectors, announced they have brokered the $140,000,000 sale of a 38-building, 1,000 unit multifamily portfolio in the Bronx to Harbor Group International in partnership with Emerald Equities and York Capital.
The portfolio was marketed exclusively by Daniel Parker, Will Silverman and Paul Gillen of Hodges Ward Elliott and represents the largest portfolio sold in the Bronx since 2013. This is also Harbor Group International’s first multifamily purchase in the Bronx market, a significant addition to their already extensive $3.5 billion real estate portfolio, comprised of multifamily, office, hotel and retail properties.
Hodges Ward Elliott reviewed over a dozen bids for the highly coveted portfolio from institutional, private, foreign, and even public sources of capital since first putting it on the market. The portfolio is comprised of several clusters of walk-up mixed-use buildings spread throughout Bronx neighborhoods including Mott Haven, Hunts Point, Lower Concourse, Little Italy, Belmont, Fordham and Bedford Park.
“A lot of smart money is acquiring large portfolios of non-luxury multifamily because they offer safe cash flows and enjoy demand from a deep pool of renters. For many bidders, it was their first property tour of the Bronx and the response was very positive for this product and location,” said Mr. Parker, a Senior Vice President at Hodges Ward Elliott. “This transaction makes clear that we are on the front end of more institutional investment in the Bronx. As Brooklyn and Manhattan become increasingly expensive, the Bronx remains an affordable alternative for New Yorkers that commute to the office districts in Manhattan.”
“We were able to position the portfolio with sophisticated financial underwriting and market acumen to attract new institutional capital sources to the Bronx, as reflected in the strong pricing,” added Mr. Silverman, Managing Director at Hodges Ward Elliott.
The transaction also comes on the heels of the HWE New York team’s recent arranging of a $69,000,000 office refinancing for 31 West 27th Street, an office building in Manhattan’s Midtown South neighborhood. The team is based at 1140 Avenue of the Americas and is the firm’s only dedicated practice to commercial investment sales and financing brokerage, including retail, office, multifamily and land.