Starwood Capital Group has sold two commercial condominium units at 425 Westchester Avenue in the South Bronx for $93.9 million. The buyer, EducationRE, is a Florida-based not-for-profit organization that supports under-resourced schools with development and financing services. This transaction was reported by city records and covered by the Commercial Observer.
The building involved in the sale is a 10-story property with 150,000 square feet of space. Among its main tenants are Zeta Charter School and the Jewish Child Care Association. According to an application filed with the New York City Economic Development Corporation, EducationRE is expected to assist Zeta Charter School in developing its facility.
Representatives from Starwood Capital Group, EducationRE, and other parties did not provide comments regarding the deal.
Starwood Capital Group partnered with AB Capstone on this mixed-use development in 2019, marking Starwood’s first announced investment in an Opportunity Zone. AB Capstone previously acquired the land and an adjacent parcel at 601 Bergen Avenue for $7 million in 2017. Starwood supplied investment capital for the project in 2022.
In recent months, Starwood has been active with several financing deals around New York City. Last week, it provided a $161 million loan to Arden Living for refinancing a multifamily property in Manhattan’s Inwood neighborhood. Additionally, Starwood lent $64 million to Slate Property Group and Avenue Realty Capital for refinancing a multifamily building with 162 units located in Brooklyn’s East Williamsburg area.
Earlier this year, Starwood also issued a $500 million loan to Dune Real Estate Partners and Robert Martin Company to refinance their industrial portfolio consisting of 42 assets across Westchester County near New York City.
Elsewhere in the South Bronx, Olnick Organization is seeking buyers for a large development site on University Avenue between West 168th and West 170th streets in Highbridge. The asking price is about $60 million for ten vacant parcels totaling 170,000 square feet; this site could support an estimated project size of up to 842,000 square feet.
