Zaro’s sells dev site for $35.2M, Schwimmer signs ground lease valued at $35M

In a two-part transaction, Montgomery Street Partners paid $35.2 million to Zaro’s Family Bakery for two development properties in Mott Haven, and at the same time, Montgomery Street as the new landlord signed a 99-year ground lease with developer Jacob Schwimmer as tenant. Schwimmer through his JCS Realty filed (X00643715) plans for a 447-unit, 422,592 square-foot residential (R-2) building on December 22, 2021. This is Montgomery Street’s second such deal in the past year.

Montgomery Street Partners through the entity 138 Bruckner Realty LLC paid $35.2 million to Zaro’s Family Bakery through the entity 138 Bruckner Ground Lessor, LLC for the development site at 138 Bruckner Boulevard in Mott Haven, Bronx.

Then, Jacob Schwimmer as tenant through the entity 138 Bruckner Ground Lessor, LLC signed a 99-year lease valued at $35 million to Montgomery Street Partners as landlord through the entity 138 Bruckner Blvd. Associates, LLC for the development site at 138 Bruckner Boulevard in Mott Haven, Bronx.
The deal closed on January 13, 2022 and was recorded on January 21, 2022.

The signatory for Zaro’s Family Bakery was Joseph Zaro. The signatory for Montgomery Street Partners was Murray McCabe.  The signatory for Jacob Schwimmer was Jacob Schwimmer.
Prior to this transaction, the buyer Montgomery Street Partners purchased two properties in two transactions for a total of $92 million and had not sold any properties over the past 24 months, but it did signed a ground lease valued at $17 million with Joel Schwartz.
The seller Zaro’s Family Bakery had not purchased any other properties and had not sold any properties over the same time period.
Out of the two properties, one with a total of 39,375 square feet of built space generated revenue of $413,570 per year.

The contract was signed July 19, 2021.Murray McCabe is co-founder and managing partner of Montgomery Street Partners.
In Mott Haven, the bulk, or 38 percent of the 43.4 million square feet of built space are residential elevator buildings, with industrial buildings next occupying 23 percent of the space. In sales, Mott Haven has 2.7 times the average sales volume among other neighborhoods with $744 million in sales volume in the last two years and is the highest in Bronx. For development, Mott Haven is the 7th most active neighborhood among other neighborhoods. It had 4.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.
On the tax block, the majority, or 88 percent of the 179,948 square feet of built space are industrial buildings, with residential walkup buildings next occupying 12 percent of the space.
Within a 400-foot radius of 138 Bruckner Boulevard, Pincusco identified one commercial real estate item of interests occurred over the past 24 months.
It was a sale which Artimus bought the 752-square-foot, one-unit retail building (G5) on 126 Bruckner Boulevard for $8 million from Joseph Dozier on March 12, 2020.

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