Bronx Pillars Portfolio

This portfolio comprises a total of 176 residential units. The potential purchaser stands to gain from acquiring fully renovated assets, which were integrated into the NYC Pillars Program in 2020. Ownership has successfully secured and started to implement a 610 Rent Amendment with HPD, positioning the portfolio for a projected 7% revenue growth by year's end. Moreover, all properties within the portfolio enjoy comprehensive tax exemptions through 2050, courtesy of the NYS Article XI program.As the exclusive agent representing Ownership, Schuckman Realty is pleased to present The Bronx Pillars Package for sale. The prospective buyer will be acquiring the properties by securing new senior debt, and assuming two separate HDC loans, both of which will be subordinate to the senior loans. 1160 Evergreen & 2240 Tiebout Ave together are governed by their respective HDC and Article XI Agreements, whereas 1414 Walton Ave operates under its own agreement. Upon acquisition, future ownership stands to benefit from immediate cash flow, with opportunities for increased revenue by leveraging larger rent increases from program-based tenants through the 610 Regulatory Agreement Amendment. There are two additional value-add strategies: the first would be by leasing any future vacancies to voucher programs, thereby securing rents higher than currently being collected. Secondly, in 1414 Walton Ave the C of O has 60 units, four of the units were once combined into two, in the future they can be split into four units and rented to vouched based tenants for a higher number. These combined apartments have the gas, electric and sewer lines in place to have them split in the future. The properties have undergone extensive capital improvements totaling over $11 million, necessary for compliance with the subordinate HDC loan and Article XI Tax Abatement. These enhancements encompass a range of essential upgrades, including new roofs, roof flashing, facade repointing, brickwork and lintel repairs, parapet wall maintenance, fire escape painting, structural crack repairs, steam piping replacements, pipe insulation, backflow preventer installations, smoke and CO2 detector installations, new hot water heaters, security camera systems, access control systems, intercom system upgrades, lobby and entryway refurbishments, including painting, flooring, lighting, and base installation, as well as enhancements to public stair hall areas, and select apartment renovations. For a comprehensive list of the scope of work, the broker can provide further details.