ZG Capital Partners acquired the commercial loft building in the Bronx for $65 million from a partnership between Savanna and Hornig Capital Partners. The 188,000-square-foot waterfront building is located at 2417 Third Avenue in Mott Haven. JLL represented the seller.
The eight-story Bruckner Building was built in 1928. It underwent a comprehensive renovation in 2016, which included a full lobby and entrance redesign, a façade update and replacement of all windows in the building, as well as new elevators, a new roof, electric infrastructure, and common corridor and lounge upgrades. The building features floor-to-ceiling loft windows that offer excellent light on all floors and sweeping views of the Harlem River and Manhattan.
The JLL Capital Markets team overseeing the sale of The Bruckner Building include Chairman of New York Investment Sales, Bob Knakal; Vice Chairman, Stephen Palmese; Managing Director, Jonathan Hageman; Vice President, George D’Ambrosio; and Associate Frank Dalicandro.
Additionally, the Bruckner Building is strategically located within easy walking distance from two subway stations—namely, the Third Avenue and 138th Street station and the ExpressTrain service at 138th Street Grand Concourse station. The property also provides convenient access to Willis Avenue Bridge, Harlem Drive, Major Deegan Expressway and Third Avenue Bridge.
“The Bruckner Building’s Mott Haven waterfront location positions the asset for very strong appreciation,” Knakal said. “The Mott Haven district is the Bronx’s most active development zone, with major projects coming to the property’s doorstep. This robust activity will change the neighborhood dramatically.”
The property will benefit from a 25-year industrial and commercial abatement program that is set to begin in 2020 and will significantly reduce taxes payable on the property through its expiration in 2045.