More than a month after a landmarked Bronx post office got a new owner, the building will soon have an entirely new use after striking a deal with a community college.
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Hostos Community College, which is part of the City University of New York, has signed a long-term lease worth more than $550M for 558 Grand Concourse, an almost 90-year-old former post office in the South Bronx, city officials announced Wednesday.
Prolific Bronx developer Maddd Equities bought the building for $44M at the end of July and now plans to convert it as an expansion for Hostos’ health and natural sciences departments.
“Now we will deliver — not mail, but we will deliver — thousands of jobs to Bronxites and other people in this city,” New York City Mayor Eric Adams said at a press conference Wednesday. “Why the hell did this post office remain vacant all this time? It would not have remained vacant in central Manhattan, but people wanted to ignore this borough.”
CUNY struck a deal for a 35-year lease with Maddd Equities, agreeing to pay $15.5M for the first year with annual 3% escalations. The university also has the option to buy the property at a fixed 5% capitalization rate “on the next future years’ net operating income” within the first five years of its lease, local news outlet The City reported.
The 175K SF building will serve as a continued education outpost for nursing students, radiologists, physicians and engineers, CUNY Chancellor Félix Matos Rodríguez said Wednesday.
“This is an investment not just for the students,” he said. “It's an investment for our city and in our future health.”
The post office’s exterior was landmarked in 1975, and its interior was landmarked in 2013. It ceased to operate as a post office in 2012 and has remained almost empty ever since.
Youngwoo & Associates bought the property in 2014 for $19M and sunk around $60M into renovations with a partner, real estate investor Bristol Group, hoping to create a food hall, retail and office development. Youngwoo put the building back on the market last year with an asking price of $75M, Crain’s New York Business previously reported.
But the only tenant now is restaurant Zona de Cuba, which has been there for six years. Zona de Cuba’s lease is set to expire soon, but Hostos plans to keep it as part of the new facility, The City reported.
The deal is the second in the Bronx this year with the city for Maddd Equities, after scoring a contract in January alongside Joy Construction with the New York City Economic Development Corp. to redevelop the Kingsbridge Armory. The 570K SF landmark is slated to become housing and community space.
It is also partnering with Stagg Group on an 800K SF dormitory and apartment project at 2740 Webster Ave. next to Fordham University, The Real Deal reported in April.
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