Newly Revitalized Building Helps Drive Development Renaissance in the South Bronx
Westhab, a nonprofit development group with 400 employees, recently committed to a 10-year lease for space in Union Crossing, a newly renovated four-star commercial building in an up-and-coming section of the South Bronx in New York City.
Union Crossing — an eight-story, 280,000-square-foot property — is part of a renaissance that is gaining momentum in the northernmost borough of New York. The building was originally built as a baking facility for the Great Atlantic & Pacific Tea Company, better known locally as the grocery store, A&P. Its second incarnation was as a massive warehouse and maintenance facility for food processing equipment.
Today, the building is poised to become a mixed-use commercial hub, with a blend of office, light industrial, retail and restaurant spaces. The $28 million project has been designed in lockstep with the transformation of the Port Morris neighborhood in the Bronx, which is emerging as a vibrant new urban center for work and play.
The Union Crossing development is led by a partnership consisting of Madison Realty Capital, The Altmark Group, The Bluestone Group and Galil Management. The design team included Woods Bagot, architect; AMA Consulting Engineers, MEP engineer; and McNamara Salvia, structural engineer. JRT Realty is handling the leasing.
Union Crossing is ideal for tenants interested in reducing overhead, while still being in close proximity to Manhattan and the rest of the metro area. Rents in the South Bronx can be significantly less expensive than elsewhere in the New York City region.
The building includes an oversized freight elevator, drive-in bays and easy access for shipping and deliveries.
“Union Crossing's large, light-filled floor plates offer flexible space for offices, maker studios, commissaries, shops and cafes; the possibilities are endless," says Josh Zegen, co-founder of Madison Realty Capital. "Moreover, there are numerous buildout possibilities that will enable tenants at Union Crossing to customize the space to meet their needs, including even having a separate entrance and lobby. Plus, the building features loading docks and a parking lot across the street."
Prospective tenants can take advantage of a wide range of financing and incentive opportunities available to promote commercial development in the South Bronx, such as relocation assistance, Opportunity Zone tax credits, utility subsidies and low-cost loans. Union Crossing is located at 825 East 141st Street, near the 6 subway route, the Bruckner Expressway and LaGuardia Airport.
Because of its central location in New York City, Union Crossing is well-situated for businesses that serve the entire region, and for attracting employees from throughout the metropolitan area.
“Union Crossing is in close proximity to two Westhab locations and is a good jumping off point for our programs throughout the Bronx, Queens, Brooklyn and Manhattan," says Richard Nightingale, president of Westhab. “We think it will be a great place to attract new staff and provide staff development for our team. We also like the feel of the building and the mix of tenants that is expected."
Union Crossing features large floor plans and tall windows, and several floors feature 20-foot ceilings and picture-perfect views of the Manhattan skyline.
The rooftop can also include commercial signage visible to the 155,000 vehicles that travel daily on the busy Interstate 278/95 highway, and the surrounding area is already home to an eclectic blend of businesses, art studios, galleries, restaurants and recreation spaces.
Development work on the building included new MEP systems, soundproof windows and elevators. Additional power capacity was also added for the building. In addition to office and light industrial uses, the ground level has been updated to accommodate retail and dining spaces.
The building's facade received a facelift — although some colorful graffiti remains in the neighborhood — and a landscaped plaza adds a green space to the property. Union Crossing also features direct access to Bruckner Boulevard, a major thoroughfare through the Bronx. While it's ready for new uses, the building's loft-like character provides a unique and historic design aesthetic.
The development team at Union Crossing is counting on attracting office tenants interested in taking advantage of the building's easy access and relative affordability. The building is centrally located in the metro area, about 30 minutes by train from Grand Central Terminal in New York City, and about 45 minutes by train from Queens.
The vision for Union Crossing is that its adaptive reuse will interest local businesses that need room to grow, and that want to be a part of the transformation of the Port Morris and Mott Haven sections of the South Bronx into a new hub for arts and industry.
CoStar estimates office rent in Union Crossing at $46-$56 per square foot.
