.avif)
Successful Sale of 14-Building Multifamily Portfolio in the South Bronx
Bob Knakal successfully arranged the sale of the Sparrow Portfolio—a 14-building multifamily collection located in the South Bronx, Bronx—for $48,000,000. This substantial transaction included a mix of elevator and walk-up apartment buildings totaling 641 units and over 636,000 buildable square feet.
The portfolio, owned by Randolph Silverstein of the Sparrow Group, was acquired by Prana Investments, led by Rich Esposito. The transaction closed on April 29, 2006. Bob Knakal's strategic handling of this large-scale portfolio—featuring a diverse set of assets across multiple addresses—enabled a smooth and successful closing in a fast-evolving market.
Portfolio Sales - For the complete list click here Portfolio Sales
Sale Details
This off-market portfolio traded for $48,000,000, equating to $75.47 per buildable square foot—a notable figure for South Bronx multifamily product at the time. The deal involved a motivated seller seeking portfolio-wide execution and a buyer looking to grow long-term holdings in an emerging submarket.
Sale Highlights:
- Sale Price: $48,000,000
- Price Per SF/BSF: $75.47
- Buyer: Prana Investments, Rich Esposito
- Seller: Randolph Silverstein, Sparrow Group
- Property Type: Multifamily – Elevator and Walk-Up, Portfolio
- Closing Date: April 29, 2006
- Unit Count: 641
- Total Buildable SF: 636,048 SF
- Number of Buildings: 14
Property Details
The Sparrow Portfolio spanned several addresses throughout the South Bronx, including:
Addresses:
1230, 1264, 1305, 1310, 1348, 1353, 1356, 1365, 1368 Sheridan Avenue
1197, 1220, 1250, 200 Marcy Place
2051 Grand Concourse
Situated between Sheridan Avenue, Marcy Place, and Grand Concourse, the portfolio was strategically located in areas experiencing significant infrastructure investment and residential growth. These pre-war and mid-century buildings offered a mix of elevator and walk-up construction—appealing to both value-add and long-term hold investors.
Key Property Characteristics:
- Mixed construction: elevator and walk-up buildings
- Total square footage: 636,048 buildable SF
- 641 residential units
- Located in high-density, transit-rich pockets of the South Bronx
Market Strategy and Positioning
At the time of sale, the South Bronx was rapidly evolving, attracting increased interest from institutional and private capital due to favorable price points and improving fundamentals. Bob Knakal positioned the Sparrow Portfolio as a value-driven opportunity with significant scale, ideal for operators looking to expand in a maturing Bronx market.
The buyer’s strategy focused on:
- Operational efficiency across clustered buildings
- Long-term asset appreciation through capital improvements
- Leveraging scale for management and maintenance savings
Neighborhood Overview
The South Bronx continues to grow as a dynamic residential enclave within the borough. It offers proximity to Manhattan, improved infrastructure, and attractive price points for multifamily investment. This area has become increasingly sought after for investors seeking large-scale holdings with upside potential.
Key Highlights:
- Steps from Grand Concourse, a key thoroughfare lined with Art Deco architecture and city institutions
- Close to Yankee Stadium, Bronx Museum of the Arts, and several city parks
- Strong access to B/D/4 subway lines, providing under 30-minute commutes to Midtown
- Area undergoing a wave of residential reinvestment and development
Conclusion
The sale of the Sparrow Portfolio marks a significant multifamily transaction in the Bronx market. With 14 buildings, over 600 units, and a diverse mix of building types, this sale reflects both the scale and potential of the South Bronx real estate landscape. Bob Knakal’s ability to navigate the complexities of a large-scale portfolio transaction delivered strong results for all parties involved.
Learn More About New York Real Estate
Explore our exclusive online magazine to discover remarkable New York real estate deals and Success Stories from the city and surrounding areas.
Frequently Asked Questions
Q1: What types of buildings are included in the Sparrow Portfolio?
The portfolio consists of both elevator and walk-up multifamily buildings, offering a diverse mix of units catering to various tenant needs and income levels.
Q2: How many total units are in the portfolio?
The Sparrow Portfolio includes a total of 641 residential units spread across 14 properties.
Q3: Why was the South Bronx an attractive investment location in 2006?
At the time of sale, the South Bronx was becoming a hotspot for investors due to its affordability, improving infrastructure, and proximity to Manhattan, all contributing to its long-term growth potential.
Q4: What was the average price per square foot in the transaction?
The portfolio sold at approximately $75.47 per square foot, making it an attractive price point for long-term hold or value-add strategies.
Q5: Are the buildings in this portfolio rent-stabilized?
While individual unit statuses may vary, portfolios of this type and era typically include a high percentage of rent-stabilized units, providing predictable income streams.
