An industrial loft building in the south Bronx was recently sold in a multi-million dollar transaction.
The five-story building, located at 388 Canal Place between East 141st and East 144th streets, was sold in a $4 million, all-cash transaction that provides its future occupant with over 30,000 square feet of space.
The property at 388 Canal Place includes a drive-in entrance and a cellular tower lease, and sits on a 50’ by 125’ lot and is currently 50% vacant.
An active investment group and a contractor occupy the other half of the building as month-to-month tenants. At the time of the sale, the second, third and half of the fifth floor were occupied.
The sale price of the Mott Haven property equated to approximately $128 per square foot.
The buyer has plans for renovations, which will convert the interior of the building into creative office use space for its future tenants, according to the selling agent.
The buyer, who did not wish to be identified, would not disclose what renovations will be done and when they will be started.
The location of the property benefits from being in close proximity to the 2 and 5 subway lines at the Grand Concourse and 149th Street station as well as the 4 and 5 subway lines at the Grand Concourse and East 138th Street station.
The transaction was exclusively handled by David Simone and James Nelson of Cushman & Wakefield, who represented the seller.
“We had interest from users as well as investors looking to convert the building into office space,” said Simone, who focuses mainly on south Bronx properties.
Demand for warehouse and industrial space continues to grow in the Bronx, especially Mott Haven, due to higher prices in the other boroughs, the broker said.
“Mott Haven is an area that has continued to receive a lot of attention – mainly because of the easy access to transportation, close proximity to Manhattan and the Harlem River waterfront and its warehouses, which many buyers and developers have looked to purchase and renovate,” Simone said.
The poor condition of the property would necessitate major renovation to make it competitive on the market.
According to sources, many properties are being purchased by real estate speculators in the recently up-zoned area south of E. 149th Street, so that they can benefit in the expected escalating property price increases.