The Offering
CBRE has been retained as exclusive agent for the sale of Pelham Bay Professional Center, a 76,529 ± SF, 73% leased, value add mixed use retail and medical property. The Property is situated in a dense, heavily trafficked area in the Bronx directly adjacent to public transportation, including the first and last stop on the #6 subway line, three bus stops providing express buses to Manhattan and Co-Op City, and also fronting on and highly visible from I-95 (131,875± cars per day).
The Property provides a stable in-place NOI of approximately $1.55 million, which grows to nearly $2.4 million upon stabilization. Due to the Property’s excellent frontage and prime location at the corner of Bruckner Boulevard and Westchester Avenue, the Property presents a near-term value-add opportunity with (1) additional retail development potential on site, (2) the conversion of medical space to retail use and (3) a potential high-rise residential redevelopment opportunity.
Investment Highlights
Stable In-Place Cash Flow
- 73%± occupied and anchored by CVS Pharmacy as well as other national tenants including Dunkin Donuts/Baskin Robbins and Subway. Medical tenants include Industrial Medicine Associates, Center for Vein Restoration and New PrimeCare, among others.
- Stable in-place income of approximately $1.55 million, while also offering upside through the lease-up of the remaining 20,776± SF vacancy. In-place NOI is projected to increase to $2.4 million by FY 2019.
Irreplaceable, Easily Accessible Location
- Steps away from major public transportation modes, including the MTA Lexington Avenue #6 subway line, which begins and ends directly in front of the Property.
- In excess of 10 bus lines stop at the Property.
- Situated just off two of the major north/south thoroughfares in Metro NY – Interstate 95 (131,875± cars per day) and the Hutchinson River Parkway (84,594± cars per day).
Incredible Density
- Well-situated in the heart of a vibrant retail/office environment and a densely populated residential area. The Bronx is the third most densely populated county in the US.
- The incredible density and population growth positions it well for continued growth in retail sales, the need for medical services and strong demand for potential residential development.
Strong Medical Demand
- Medical tenants are drawn to the Property due to its incredible accessibility via roadways and public transportation, onsite parking, first class medical space and its proximity to nearby hospitals.
- Located within approximately 1.25 miles of three hospitals which serve as drivers for Pelham Bay Professional Center, whose tenants provide much of the support services.
- New leases and renewals totaling 14,000± SF demonstrates the demand for medical space offered by the Property.
Redevelopment Opportunity Via Retail Conversion and Underutilized FAR
- The Property’s underutilized FAR presents a significant opportunity in the development of additional retail along Bruckner Boulevard (300± feet of frontage).
- The potential conversion of medical suites along Westchester Avenue (418± feet of frontage) to retail will further solidify the Property as the strongest retail center in the area.
- A larger scale redevelopment opportunity exists in constructing a mixed use, transit-oriented retail and residential development. The Property’s direct access to public transportation and the area’s major highway networks, combined with its proximity to Pelham Bay Park, ideally positions it for residential development.
Contact Information
Jeffrey Dunne
Vice Chairman
+1 203 352 8928
jeff.dunne@cbre.com
David Gavin
First Vice President
+1 203 352 8944
david.gavin@cbre.com
Travis Langer
Senior Financial Analyst
+1 203 352 8910
travis.langer@cbre.com
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