800 East 160th Street

800 E 160th St, The Bronx, NY 10456

Investment Details

Location Bronx, NY
Asset Class C
Acquired Date October 2020
Number of Units 28
Purchase Price $5,800,000

Location

800 E 160th Street marked one of Nord Group’s strategic early acquisitions in the New York market, secured at the onset of the COVID-19 pandemic. This investment presented a rare combination of favorable financial conditions and long-term growth potential.

With an attractive going-in cap rate, the acquisition was further strengthened by exceptional financing terms: 80% loan-to-value (LTV) at a 3.5% interest rate, including five years of interest-only payments. These terms enabled significant cash flow advantages from the start. Furthermore, the property came with a 15-year tax abatement, offering investors protection from rising operational costs in the long term.

The building had immediate value-add potential, with several apartment units positioned for rent increases of $500–$600 over the next five to six years, excluding any year-over-year market rent growth. This rent appreciation, coupled with the tax savings, set the stage for robust cash-on-cash returns and the potential to achieve a 30%+ internal rate of return (IRR) over the investment period.

Additionally, two major capital expenditures—the roof and boiler—had been recently replaced by the seller, mitigating significant future maintenance risks. Altogether, the asset offered an excellent opportunity to capture upside in a recovering market, while providing substantial downside protection through long-term debt, cost-saving measures, and tax incentives.