NEW YORK, NY – June 14, 2016 – Ariel Property Advisors has released its latest Neighborhood Report, which focuses on Bronx’s Belmont neighborhood. The report highlights the social and cultural resurgence, as well as economic development in the area.
It also focuses on Belmont’s unique geographic positioning, diverse population, and the influx of millennials as well as student housing, which is spearheading a potential change in the neighborhood.
Social & Cultural Reinforcement:
New Yorkers and tourists are going to Belmont in part due to its attractive history and emerging cultural scene, notes the Neighborhood Report. Belmont is surrounded by three major cultural institutions. Fordham University to the north, the Bronx Zoo to the east, and the Bronx Botanical Gardens further north. These landmarks substantially help attract tourists to the area in spite of its lack of centralized subway system.
The original vision of developers and the influence of Italian immigrants in the Little Italy section very much shaped Belmont into what it is today. The report also highlights various restaurants, cafes and markets that offer visitors authentic Italian food and cultural immersion along Arthur Avenue and East 187th Street. Additionally, the northern border of East Fordham Road is one of the busiest retail streets in terms of foot traffic.
The report indicates that sales of commercial buildings have, in some case, reached over $1,000 per square foot, indicating the growth and potential that investors see in Belmont. An example of this type of growth is 301 East Fordham Road where the value per square foot totaled $1,200.
Additionally, St. Barnabas Hospital in the southern end of Belmont is another example of economic growth in the neighborhood. The hospital employs over 2,500 people, many of whom reside in Belmont and live close enough in the Belmont area to walk to work.
Economic Revival:
Fordham University provides a huge economic boost for the neighborhood. There are approximately 7,000 undergraduate students enrolled in the Bronx campus, who prefer the off-campus lifestyle provided by small houses, regular apartments, or designated student housing, privately owned by investors. The desired area for housing is increasingly dense for Fordham, leaving supply very low and driving up demand.
The report explains that a student is willing to pay anywhere from $750-$1,000 per room per month. For a 3-bedroom unit, the $2,500 per month for the apartment is well above the $1,750 average for the Bronx.
Although, these are short term tenants and maintenance is much higher, the owners are still willing to take the risk for the higher returns. In addition, there is minimal risk of default because most of the time parents are cosigning on the leases, almost guaranteeing that rent will be paid on time.
The off-campus housing options are much cheaper than Fordham’s private student housing providing an economical alternative to students. For example, AB Capstone purchased 2409 Arthur Avenue, which is set to be developed with the intended use specifically for student housing.
“Due to its large student population, Belmont is experiencing a new identity as a ‘college town’ which is a drastic shift from the old days of Little Italy,” said Scot Hirschfield, Vice President at Ariel property Advisors.
The report also addresses future implications for the potential of Belmont’s future gentrification. The lack of a subway system in Belmont maintains the community’s relatively quiet, untouched business feel. The Metro North at Webster Avenue and East Fordham Road is the only public train along the Harlem Line. The bus lines that run through Belmont such as the Bx15, Bx17, and Bx36 sufficiently serve the local residents and tourists. For now, Belmont is open to embracing change, while also maintaining it’s more familiar, rooted DNA.
