Cohen Commercial Properties (CCP) has acquired a 12,212-square-foot, two-tenant, retail property at 1800 Williamsbridge Road in Bronx for $11.425 million.
“It is a conservative investment, but it’s in an area that currently and in the longer term is going to appreciate in value,” Andrew Cohen, chief executive officer at CCP, said of the acquisition.
The acquisition, from Madison Capital and Prudential Real Estate Investors, was financed with a low interest rate first mortgage from Signature Bank. As reported by The Commercial Observer, Madison Capital and Prudential Real Estate Investors acquired the Bronx property earlier this year as part of a portfolio consisting of five Citibank branches across New York City.
Located on the corner of Williamsbridge Road and Morris Park Avenue, the property is currently occupied by a 4,669-square-foot Citibank branch and a 7,543-square-foot Walgreens location. Walgreens is under long-term lease, according to Mr. Cohen, while Citibank has a shorter term commitment.
“We feel [Citibank’s] rent is substantially below market,” Mr. Cohen said. “Long term, that’s where the upside is, recapturing that space and replacing Citibank with a tenant paying market rate or getting Citibank to pay market rates.”
CCP’s portfolio consists primarily of retail properties across nine states, but Mr. Cohen is currently selling off many of those to finance acquisitions in the New York metropolitan area. After recently selling a property in Florida, CCP reinvested the capital in the Williamsbridge Road acquisition.
The Bronx deal follows CCP’s recent acquisition of 2481 Adam Clayton Boulevard in West Harlem, a 7,492-square-foot retail space also occupied by Citibank. The property also includes 30,051 square feet of air rights, which CCP plans to develop.
“We are going to pick up the acquisition pace this year,” Mr. Cohen said. “We have another acquisition teed up right now; hopefully we can get that done in the second quarter.” The potential acquisition is located in Manhattan, according to Mr. Cohen, who declined to provide further details.
CCP is also planning to work with office and residential developers going forward, making a commitment to purchase the retail component of future projects.
Sam Catton, senior director of acquisitions, and Paul Trupia, director of acquisitions, represented CCP in-house in the Bronx transaction. Ken Zakin and Randall Liberman of Newmark Grubb Knight Frank represented the sellers.