Bronx Rent-Stabilized Portfolio Trades at a Discount
A massive rent-stabilized portfolio in the Bronx has changed hands as owners continue to exit the asset class. Related Fund Management sold 34 multifamily properties totaling 2,021 rent-stabilized units for $192.5 million to Longacre, a joint venture of PH Realty Capital and Rockledge.
The portfolio, spanning 2.1 million square feet, is located in Kingsbridge, Norwood, Wakefield, and other northern Bronx neighborhoods. PGIM provided a $141 million acquisition loan, structured as a floating-rate instrument under its core-plus strategy. Eastdil arranged both the sale and financing.
This trade reflects the larger trend of institutional owners backing away from rent-regulated holdings following the 2019 Housing Stability and Tenant Protection Act. Related had acquired the portfolio in 2014 for $253 million and reportedly spent $30 million on renovations. The sale represents a 24% discount, with the firm accelerating its rent-regulated divestitures.
Peter Hungerford of PH Realty Capital, one of the few active buyers in this space, sees upside in acquiring at a deeply discounted basis. In previous deals, Hungerford and Rockledge have purchased both stabilized properties and distressed debt, positioning themselves to consolidate value in a regulatory-constrained sector.
New High-Density Housing Proposals Advance in East Harlem and Queens
The MTA has entered public review for a 38-story, 680-unit mixed-use development at East 125th Street and Lexington Avenue, directly above the future Second Avenue Subway extension. Over 150 units will be permanently affordable, and the project reflects high-density goals under the “City of Yes for Housing Opportunity” initiative. The proposed C6-11 rezoning would allow an FAR of 15—enabling greater density and affordability near key transit.
Meanwhile, in Fresh Meadows, Queens, Heights Advisors has filed for a zoning map amendment to build a 330,000-square-foot mixed-use project at 175-05 Horace Harding Expressway. Plans include 324 residential units, 81 permanently affordable, across two buildings. One will rise 12 stories with retail and parking; the other, five stories with a community facility and additional parking. The site was formerly home to St. John’s University’s EMS Institute, which closed in December.
Legal and Financial Pressure Points Emerge Across Manhattan
Several situations involving legal action and financial challenges in the real estate sector have been in the news. The legal dispute involving the popular theater production "Sleep No More" and its landlord, Centaur Properties, has concluded. The production, which closed in January, had been in a legal battle with Centaur Properties for over a year concerning its space at the McKittrick Hotel in Chelsea. The legal issues began in 2024 when Centaur sued to evict "Sleep No More," alleging the show’s permit had expired and seeking $4.5 million in back rent from the production's guarantors, Arthur Karpati and Jonathan Hochwald.
"Sleep No More" filed its own lawsuit, claiming the landlord had gone back on an agreement to alter the lease terms to help Centaur refinance its mortgage, including a higher rent for the first year. Centaur denied this agreement existed and argued that "Sleep No More" could not claim damages as they continued to use the premises without paying rent. A judge recently ruled in favor of Centaur, dismissing the claims made by Karpati and Hochwald and finding the guarantors personally liable for the amounts owed under the lease.
In the Garment District, Manhattan, an office building at 1367-1369 Broadway was recently sold through a foreclosure auction. Bridge Investment Group acquired the 20,500-square-foot building on May 14, 2025. Bridge Investment Group had filed a pre-foreclosure action in 2022 against the owner, Broadway Star Realty LLC, related to a $30.3 million loan originated by Bridge through one of its funds in 2018. The loan had fallen into default. The property was purchased by Broadway Star Realty LLC for $38.9 million in March 2015. The foreclosure auction resulted in a sale price of $5 million, significantly lower than the $30.3 million loan judgment. The building is zoned M1-6 and has additional air rights.
The Manhattan Country School is facing potential closure after a federal bankruptcy judge denied its motion for new debt financing. The private school had sought up to $8 million in financing, which would have been superior to the approximately $24 million debt held by Flushing Bank, secured by the school’s building at 150 West 85th Street on the Upper West Side of Manhattan. The school values the building at about $38 million. The judge's ruling allows the school to resubmit a new financing plan. However, with the failure to secure financing, there are reports that the school could close as early as this month. The school filed for bankruptcy on May 16 in U.S. Bankruptcy Court in Manhattan.