Transwestern Brokers Deal to Launch Development on 425 Westchester Ave.
May 23, 2019
New York City – Transwestern Commercial Services (TCS) today announces it brokered a 98,000-square-foot deal for Zeta Charter Schools that will make it the anchor of 425 Westchester Ave., a planned mixed-use development by Starwood Capital Group and AB Capstone in the South Bronx.
The new school, Zeta Bronx 1, will house elementary and middle school classrooms, as well as teacher and administrative office space. The school will move from its temporary Bronx location at 222 Alexander Ave. to begin the 2021-2022 school year. TCS Partner Lindsay Ornstein, Managing Director and National Nonprofit Advisory Services Leader Stephen Powers, and Vice President Thomas Hines provided occupier representation services for the nonprofit school.
“Zeta Charter Schools is deeply dedicated to the South Bronx and supporting the children and families of the community,” said Emily A. Kim, CEO, Zeta Charter Schools. “Zeta Bronx 1 will feature state-of-the-art facilities and provide an atmosphere that will enable us to build and support lifelong learners and the next generation of innovators.”
Zeta Charter Schools will anchor the 10-story, 147,000-square-foot building, and Starwood Capital Group and AB Capstone will begin construction of the building this month. The development will also include office space, ground-floor retail and 10,000 square feet of outdoor space.
“We are thrilled to have advised Zeta Charter Schools in securing a new home in the South Bronx,” said Ornstein. “With a creative deal structure and a world-class development team, the school is able to strategically leverage its real estate asset to support its mission. Zeta Bronx 1 is well positioned to serve generations of children and families in the community.”
The Zeta Charter School commitment was structured as a leasehold condominium. In addition to others, TCS recently structured a leasehold condominium deal for Neighborhood Charter School’s 58,000-square-foot, K-8 school in the Bronx. The leasehold condominium structure offers significant savings to nonprofits by eliminating real estate tax obligations.
Newmark Knight Frank provided capital markets services for AB Capstone. Building ownership was represented internally in the Zeta Charter Schools deal negotiations.
ABOUT TRANSWESTERN COMMERCIAL SERVICES
Transwestern Commercial Services (TCS) is a privately held real estate firm of collaborative entrepreneurs who deliver a higher level of personalized service and innovative client solutions. Applying a consultative approach to Agency Leasing, Asset Services, Occupier Solutions, Capital Markets and Research, our fully integrated global organization adds value for investors, owners and occupiers of all commercial property types. We leverage market insight and operational expertise from across the Transwestern enterprise, which includes firms specializing in development and real estate investment management. TCS has 34 U.S. offices and assists clients from more than 200 offices in 37 countries through strategic alliances with France-based BNP Paribas Real Estate and Canada-based Devencore. Experience Extraordinary at transwestern.com and @Transwestern.
ABOUT ZETA CHARTER SCHOOLS
Zeta Charter Schools’ (Zeta’s) mission is to build and sustain high-performing public charter schools that forge thriving communities of lifelong learners, problem solvers, and innovators. In August 2018, Zeta launched two public NYC elementary schools, Zeta Bronx 1 (in the South Bronx) and Zeta Inwood 1 (in Inwood/Washington Heights). Zeta Inwood 1 and Zeta Bronx 1 serve Kindergarten and 1st Grade students in the 2018-19 school year and will add one grade each year to ultimately serve students in grades pre-K through 12th grade. In March 2019, Zeta was awarded two additional charters to open new schools in August 2020.