Kite Realty acquires Retail Properties of America’s Bronx retail valued at $156.3M, part of $2.79B deal

Kite Realty Group through the entity Kite Realty Group, L.P. acquired from Retail Properties of America the office and retail condos that comprise 400 East Fordham Road in Belmont, the Bronx, valued at $156.3 million.
This is the entity level transfer of Fordham Place, occupied by Walgreens, Best Buy, Macy’s Backstage and the city’s Department of Education, and is part of the $2.79 billion acquisition of RPA by Kite, completed in October 2021. Retail Properties of America bought the two condos comprising the entire building for $133.9 million in 2013 from Acadia Realty Trust. The new deal gives Kite an enterprise value of $7.5 billion in the portfolio of shopping malls.  This is the Kite press release on the purchase of RPA.
The Fordham Place deal closed on October 22, 2021 and was recorded on May 11, 2022. The two condo units have 246,320 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $634 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 400 East Fordham Road.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Kite Realty Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Retail Properties of America had not purchased any other properties and had not sold any properties over the same time period.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have not received any significant violations in the last year.

The neighborhood

In Belmont/Little Italy, the bulk, or 35 percent of the 17.6 million square feet of commercial built space are residential walkup buildings, with residential elevator buildings next occupying 22 percent of the space. In sales, Belmont/Little Italy has had very little sales volume relative to other neighborhoods with $73 million in sales volume in the last two years. For development, Belmont/Little Italy has had very little major development activity relative to other neighborhoods.It had 643,422 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

The majority, or 89 percent of the 632,480 square feet of built space are office buildings, with mixed-use buildings next occupying 11 percent of the space.

Surrounding

Within a 400-foot radius of 400 East Fordham Road, PincusCo identified two commercial real estate items of interests occurred over the past 24 months.
They were all for building rehabilitation or alteration that require a change to the certificate of occupancy. They were one permit applications with a total initial cost of $975,000 and one permit with a total initial cost of $975,000. The most recent of these two items was the permit on February 26, 2021 for a 229,809-square-foot B building with zero residential units at 400 East Fordham Road.

Direct link to Acris document. link