An investor group has shelled out $16.25 million for Ponce Bank’s flagship branch and corporate headquarters at 2244 Westchester Avenue in the Bronx, a rare long-term net-leased bank asset sitting right in front of the Castle Hill Avenue 6-train stop.
Brokerage And Bidding
Marcus & Millichap brokered the sale, and agent Steven Siegel said the property “drew tremendous interest” as a management-free NNN investment with annual rent bumps. As bidding heated up near the finish line, competing offers pushed the price higher and squeezed the capitalization rate to about 6.1 percent. The seller ultimately chose an all-cash 1031 buyer, according to New York Real Estate Journal.
The Asset
The two-story bank building spans roughly 29,819 square feet and was built in 1970. It sits on about a 0.96-acre parcel with 52 on-site parking spaces, and Ponce’s long triple-net lease runs through 2038, according to the marketing materials. The offering also touted a roughly $220 million deposit base and the site’s proximity to the Bronx Zoo, the New York Botanical Garden and Fordham University, per Marcus & Millichap.
Buyer And Public Records
City records show the deal closed in early June and was recorded on June 10, with Jackson HT Roosevelt Development, an entity tied to Susan and Austin Ting, listed as the purchaser, as reported by PincusCo. The buyer executed the acquisition as part of a 1031 exchange that was arranged by Judson Kauffman of Surmount.
What It Signals
The deal highlights that investors are still hungry for management-free, single-tenant bank properties even with borrowing costs stuck at elevated levels, with yields compressing into the low-6 percent range, according to Marcus & Millichap. Brokers also pointed to the property’s subway access and future development potential as key reasons the site drew so much attention from buyers.
