Starwood Capital Group quietly sold a building in the South Bronx for nearly $100 million.
The firm helmed by Barry Sternlicht sold two commercial condominium units at 425 Westchester Avenue to EducationRE for $93.9 million, according to city records reported by the Commercial Observer. The buyer is a Florida-based not-for-profit that helps under-resourced schools with development and financing.
The 10-story, 150,000-square-foot building counts Zeta Charter School and the Jewish Child Care Association among its anchor tenants. EducationRE is expected to help the charter school’s development of a facility, according to an application with the New York City Economic Development Corporation.
None of the players involved in the transaction commented to the outlet.
Starwood partnered with AB Capstone in 2019 on the mixed-use development, the former’s first announced Opportunity Zone investment. AB Capstone acquired the vacant land and an adjacent parcel at 601 Bergen Avenue in 2017 for $7 million.
Starwood reportedly provided investment capital for the development in 2022, according to LoopNet.
Sternlicht’s firm has been keeping busy in and around the Big Apple. Last week, Starwood handed a $161 million loan to Arden Living to refinance its Forty Six Fifty multifamily property in Manhattan’s Inwood. It also lent $64 million to Slate Property Group and Avenue Realty Capital to refinance a 162-unit multifamily building in Brooklyn’s East Williamsburg.
And in August, Starwood lent $500 million to Dune Real Estate Partners and Robert Martin Company to refinance the partnership’s 42-asset industrial portfolio in New York’s Westchester County, which spans 2.4 million square feet in the New York City-adjacent market.
Elsewhere in the South Bronx, the Olnick Organization is looking to offload a large development site on a largely vacant patch of land on University Avenue between West 168th and West 170th streets in Highbridge. Olnick is seeking approximately $60 million in a deal.
The lot includes 10 vacant parcels spanning 170,000 square feet and the site could contain an 842,000-square-foot project.
— Holden Walter-Warner
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