Brookfield Secures $438 Million Construction Loan for Second Phase of Bronx Development
Photo Courtesy of ArX Solutions
Brookfield Properties, the developer behind a massive South Bronx mixed-use development project, is ready to commence the second phase of construction after securing a $438 million loan. Apollo Global Management is providing the financing, allowing the developer to create more than half of the units planned for the sprawling property.
The highly anticipated Bankside mixed-use development is being built on two parcels along the Harlem River in the South Bronx's Mott Haven neighborhood. Brookfield purchased the properties from Somerset Partners and Cherit Group in 2018 for $165 million, making it the most expensive development deal in Bronx history.
Upon completion, Bankside will feature seven interconnected towers with two different facades; some buildings will have facades made up primarily of masonry, and others will boast glass-and-metal designs. Sprawling across more than 4.3 acres, the property will include more than 1,350 apartments and roughly 15,000 square feet of retail space. Bankside will also feature extensive amounts of public space.
Hill West Architects designed the $950 million campus on the Harlem River, and ground broke on the project in 2019. It's one of more than 20 major development projects erupting across Mott Haven, the third-poorest neighborhood in NYC; it's also the largest. Others include a 27-story tower at 2413 Third Avenue and a 12-story mixed-use development at 276 Grand Concourse. All told, more than 5,000 new apartments are expected to be built in Mott Haven over the next few years. Most of them will be located along the river in the neighborhood's southwest corner.
Bankside's first phase, known as the Third Avenue parcel, includes three towers at 2401 Third Avenue: two 25-story buildings and one 17-story building. All three are situated on an eight-story podium. Known as Third at Bankside, the property's amenities include valet parking, coworking space, indoor bicycle storage, a rooftop pool deck and a double-height fitness center.
The first units at "the Third," as it's also known, opened in March. The property features 458 apartments with high-end touches like in-unit washers and dryers. Brookfield committed to earmarking 30% of the units developed for the project for affordable housing, so 135 units at the Third will be rent-stabilized. They will be made available through the NYC affordable housing lottery program. One of the city's poorest neighborhoods, Mott Haven has a poverty rate of around 40%, and roughly 43% of households earn $20,000 or less per year.
Rent for a non-lottery apartment at the Third starts at $2,455 per month for a studio. Three-bedroom units with private terraces rent for around $7,300 per month.
Now that Brookfield has secured financing for additional new construction, the developer will commence with the second and final phase of the project along Lincoln Avenue. The second phase consists of four additional 25-story towers and more than 34,000 square feet of public space. A public park and an esplanade will be developed along the Harlem River, helping to weave the design of the development into the overall fabric of the area.
The housing lottery for affordable units at the Third was held in January. To qualify, applicants must earn 130% of the area median income, equivalent to a salary of between $61,500 and $168,000 per year. Those who qualify for rent-stabilized units will have more affordable rent prices. Qualified applicants would pay around $1,800 per month for one of the development's 47 studios, $2,200 to $2,300 for one of its 49 one-bedroom units and $2,700 to $2,900 for one of its 38 two-bedroom apartments.
The development of Bankside represents a significant shift for the South Bronx waterfront. The parcels on which it's being developed consisted of disused, contaminated industrial land that had largely been turned into parking lots. The original developers wanted to rebrand the area as the Piano District, but those plans fell through. Ultimately, this stretch of the riverfront could end up taking the name of the massive development, turning this section of the South Bronx into Bankside.
Other projects in Mott Haven are also rapidly approaching completion, so thousands of new apartments will become available in this section of the Bronx over the next few years. However, it could still be too little, too late for counteracting the ongoing housing crisis plaguing the city.