Patience and Progress in the Bronx-NT Times arcticle (section 8, 2013)

[pietrang]

http://www.nytimes.com/2013/01/06/re...the-bronx.html

Interesting interview with a Bronx developer. I think he's spot on about where he sees the borough going and what's been going on to date. However, I think his is a bit short sighted. He has been concentrting on low and middle income housing which while certainly need in this city, neighborhoods are much better when all types of people live in them. I think developers should consider buiulding some upper income housing in the Bronx as well in the neighborhoods he mentions as improving, not just in Riverdale where most of this housing is now. For example, he mentions the West Bronx, partcularly the Fordham area and Melrose. I am in these neighborhoods quite often and to me they would be great places to build some upper income condos/rentals and/or hotels similar to what's been happening in Harlem. The proximity to transportation especially the Metro-North and the subways make these areas quite liveable. What's missing is the higher end retail but that doesn't exist in Harlem yet either. I recognize it might be speculative but what I've seen in NYC over the years is that if you build it they will come.

[NYC Subsidy Troll]

The South Bronx has generally been redeveloped by a host of public programs . From Charlott's Gardens (1980) to lihtc (1986-present). There has been limited risk on the part of the development community and I don't see that changing, en masse, until all city-owned developable sites are built.

Prior to the mortgage meltdown, small developers built 2-3 family homes on any available lot because of lack of publicly subsidized inventory and easy mortgage financing. Some of those homes not sit vacant or have been converted to Section 8 rentals.

Bottom line, you need a strong market to absorb market-rate housing in large scale. Developers are not going to take that risk if there are public funded (risk free) developments available.

[NYC Subsidy Troll]

One more thought, middle-income rentals (100% AMI) in the South Bronx have been difficult to lease as the 1 br rents are $1200+ and 2 br are $1500+.

Developers were able to absorb this risk by reducing rents to stabilize the initial leasing due to subsidies. In a market-rate scenario, a foreclosure would begin.

[SobroGuy]

The article isn't just about the South Bronx, it is about the entire borough, so how one portion of the Bronx (Southern) developed has no bearing on the rest. However, the Southern portion of the borough has seen some high end market rate development which sold for record prices, including the Bronx Bricks development...these loft condos sold for between $400K and $800K. I do agree however that we should have more higher end developments, but at this time there isn't an appetite yet for it on the locations they are building. When they begin developing on the Southern Bronx waterfront with views of Manhattan is when you will see the high end market rate development. The rezoning has already been done, and the plan is already approved by the community board so it should break ground and convert all those warehouses along the waterfront into a new dense, urban oasis...my guess is within 7 years.

As a LL in the Southern Bronx I can tell you that at no time have I ever had trouble renting apts to working tenants for market rents, including 2 beds for $1,500...where are you getting this information from?

[NYC Subsidy Troll]

Pardon Sobro, I was referencing large-scale developments who market with HPD lotteries not individual LL's.

[Webster Ave Guy]

Originally Posted by pietrang

http://www.nytimes.com/2013/01/06/re...the-bronx.html

Interesting interview with a Bronx developer. I think he's spot on about where he sees the borough going and what's been going on to date. However, I think his is a bit short sighted. He has been concentrting on low and middle income housing which while certainly need in this city, neighborhoods are much better when all types of people live in them. I think developers should consider buiulding some upper income housing in the Bronx as well in the neighborhoods he mentions as improving, not just in Riverdale where most of this housing is now. For example, he mentions the West Bronx, partcularly the Fordham area and Melrose. I am in these neighborhoods quite often and to me they would be great places to build some upper income condos/rentals and/or hotels similar to what's been happening in Harlem. The proximity to transportation especially the Metro-North and the subways make these areas quite liveable. What's missing is the higher end retail but that doesn't exist in Harlem yet either. I recognize it might be speculative but what I've seen in NYC over the years is that if you build it they will come.

Thanks Pietrang.