The Olnick Organization has put up for sale a large development site in the South Bronx that has remained undeveloped for over 50 years. The Midtown-based developer is asking about $60 million for the mostly empty land located on University Avenue between West 168th and West 170th streets in the Highbridge neighborhood, according to a report from Crain’s.
The property consists of 10 vacant parcels covering 170,000 square feet. An offering memo states that the site could support an 842,000-square-foot project with space for more than 1,100 residential units. It is not clear if this unit count includes an additional lot on Undercliff Avenue between West 171st Street and Sedgwick Avenue, which adds about 28,000 square feet to the offering.
“Given the growing demand for affordable housing, combined with the City of Yes initiative, we believe this is a timely moment to sell,” said Seth Schochet, chief executive officer of Olnick.
The memo points to New York City’s City of Yes Housing Opportunity as a factor in the sale. The initiative could allow increased floor area, building height and bulk allowances, as well as reduced parking requirements for future developments. The memo also mentions possible eligibility for tax incentives under program 485x if affordability requirements are met and potential benefits from the state’s Brownfield Cleanup program.
Olnick has owned this site since 1969 but has never developed it. Schochet noted there was no specific reason why investment had not occurred previously.
Mitchel Flaherty and Brian Whelan from Ripco Investment Sales are handling the listing.
Other developers have been active in nearby areas. Phipps Houses recently submitted a rezoning application to the Department of City Planning for a project at 893-895 East 167th Street in Foxhurst. This plan by New York City’s largest affordable housing nonprofit would create a development with nearly 500 units across approximately 377,000 square feet (https://www.nyc.gov/site/planning/applicants/environmental-review/893-895-east-167-street.page).
In addition, Scale Lending last month provided Beitel Group with a $305 million loan for its planned project at 355 Exterior Street. That development will include about 755 units (https://therealdeal.com/new-york/2024/05/16/beitel-group-lands-305m-loan-for-south-bronx-tower/).
“Given the growing demand for affordable housing, combined with the City of Yes initiative, we believe this is a timely moment to sell,” Schochet said.
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