A Bronx Tale: Rents on the Rise

NEW YORK CITY—Cheskel Scwimmer’s Chess Builders has received a $140 million construction loan for its new high-rise development at 210 E. 135th St. in the Mott Haven neighborhood of the South Bronx. The financing will pay for construction of two 25-story towers comprising 430 rental units including 129 affordable housing apartments. The project will also have 24 hotel rooms, 5,000 square feet for commercial use and 210 parking spaces.

The development is near the subway and close to Bruckner Boulevard, the neighborhood’s main corridor for retail, bars and restaurants. St. Mary’s Park, the BronxArtSpace and the South Bronx Farmer’s Market are also nearby. Plus, the project will benefit from its proximity to Manhattan and less expensive rental rates. 

Meridian Capital Group arranged the loan from the private bridge and construction lender S3 Capital Partners. 

“We believe in the growing potential of the South Bronx,” says Joshua Crane, co-founder and principal at S3. “The continued activity from both private owners and large institutional developers make the area very attractive for development and investment.” He praised Scwimmer for decades of developing successful projects in New York City and for his vision in the South Bronx.

“The sterling reputation of the developer played a major part in completing this transaction,” says Isaac Filler, the Meridian broker who arranged the transaction. “Chess Builders has always been on the forefront of developing large projects in New York City’s active markets. The Bronx was a natural progression after completing numerous successful projects in Long Island City and Brooklyn.” 

Scwimmer’s other projects include 561 Flushing Ave., 616 Bedford Ave., 102-108 S. 8th St., 407 Berry St., 563 Flushing Ave., 50-09 2nd St., 342 E. 112th St., 410 E. 120th St. and 601 Ocean Parkway.

Chess Builders’ latest financing deal comes at a time when MNS’s June 2019 Bronx Rental Market Report concludes that in the past month the most expensive studio, one-bedroom and two-bedroom apartments in the borough were located in Mott Haven. It notes the average price for a Bronx studio was $1,707. In Concourse/Highbridge it was $1,601. In Morris Heights/University Heights studios were $1,427. In Mott Haven the average price was $2,073. This exceeded Riverdale, normally one of the pricier neighborhoods where average monthly rent was $1,726.

The MNS report notes in the Bronx, Mott Haven’s average studio prices experienced the greatest change since May, going up $18.5% or $324 per month. For one-bedroom apartments, the Morris-University Heights area experienced the greatest price increase from the prior month rising 2.2% or $36 per month.

With two-bedroom units, the average price in the Bronx was $2,291. Mott Haven topped that with an average rent of $2,692. From April for this larger sized dwelling, Mott Haven’s average rent rose 6.2% or $156.

The brokerage firm charted a drop in Mott Haven’s average rental prices in May but then an increase of 7.94% through June. It attributed the price increase to the neighborhood’s far greater ratio of new-to-old inventory. It states, “Listings from newer buildings drastically change the average rental price in the area.”