Brookfield Closes On $165M Bronx Buy, Releases Project Details
The Canadian private equity giant closed on its purchase of 2401 Third Ave. and 101 Lincoln Ave., two parcels where it plans to build 1,300 housing units, 30% of which will be designated as "income-targeted," which is to say a mix of affordable and workforce housing. It expects to break ground on both phases of the 1.4M SF development at different points in 2019.
The landmark project was spearheaded by Somerset Partners and Chetrit Group, which had long planned to use it to turn Mott Haven into the Bronx's version of Long Island City: turning the waterfront into a place where renters are willing to pay high rents for luxury buildings and amenities with seamless Manhattan access, without the Manhattan price tag.
Brookfield acquiring the project has been called a game changer by other developers active in the area. In addition to the housing and retail, Brookfield plans to build a promenade and park on 850 feet of waterfront stretching in front of both parcels and under the Third Avenue bridge that bisects the area.
“Our development, Brookfield’s first in the Bronx and the latest example of our growth in the multifamily sector, will add to the vibrant community by providing new market-rate and affordable housing on what today is vacant land while providing public access to the Mott Haven waterfront for the first time in generations with a world-class waterfront promenade and park," Brookfield Property Group Executive Vice President Ben Brown said.
Brookfield will first plan and design the 463K SF 2401 Third Ave. parcel, with plans to break ground on it in Q2 2019 for a 2021 opening. Later in 2019, it expects to start construction on 101 Lincoln, the larger piece of the puzzle with 950K SF of residential and commercial space, all told.
Cushman & Wakefield's Doug Harmon and Adam Doneger brokered the sale of the properties, which closed for $165M Thursday. Pryor Cashman's Todd Soloway, Danielle Schechner and Ari Tran worked with Somerset and Chetrit on the sale, while Brookfield was represented by Fried Frank.