NYC Retail Portfolio Commands $55M

Marcus & Millichap worked on behalf of the seller—a longtime family owner—in the 19-property transaction and also procured the buyer, Chestnut Holdings.
12 E. 167th St.

Jonathan Wiener of Chestnut Holdings has acquired a 19-property portfolio spread out in the New York boroughs of the Bronx, Brooklyn and Yonkers, from a New York City family, for $55 million.

Overall, the portfolio consists of 18 retail properties and one vacant lot, for a total of 106,708 square feet of rentable retail space and 493,679 buildable square feet. Marcus & Millichap facilitated the transaction, working on behalf of the sellers—who had owned the properties for about three decades—and also procured the buyer.

Two sites in Yonkers are located at 268-274 Riverdale Ave. and 417-433 Riverdale Ave. The Brooklyn properties involved in the sale include those located at 191 York St., 416 Crescent St., 578-584 Rockaway Ave. and 104-15 Glenwood Road.

The portfolio’s Bronx properties consist of:

  • 300-312 E. 194th St.
  • 2609 Marion Ave.
  • 2172 Crotona Ave.
  • 1671-1687 Macombs Road
  • 239-245 E. Tremont Ave.
  • 408-414 E. Tremont Ave.
  • 132-140 Featherbed Lane
  • 7 E. 172nd St.
  • 1434 Jerome Ave.
  • 12-28 E. 167th St.
  • 1001-1005 Ogden Ave.
  • 1401-1413 Bronx River Ave. 
  • 1544 E. 174th St.

NYC retail on the rise

A recent Marcus & Millichap report revealed retail development in metro New York City is reaching a high for this cycle, bringing steady, tight vacancies and generally substantial rent increases.

“This was a great value-add opportunity for an experienced operator in the Bronx,” Mark Gjonbalaj, Marcus & Millichap’s senior associate, said in a prepared statement. “Despite the uncertainty floating around the future of retail these days, we quickly generated multiple strong offers and closed at 98 percent of the asking price.”

According to the 2018 second-quarter report, Marcus & Millichap projects the retail market bifurcating between North Brooklyn, where asking rents fell, and Downtown and South Brooklyn, where rates increased.

Image courtesy of Marcus & Millichap