Prime New Rochelle Development Site Offered for Bankruptcy Auction
Real Estate In-Depth | June 29, 2022
NEW ROCHELLE— Commercial brokerage firm Newmark announced on June 28 the pending bankruptcy auction of a prime development site at 115 Cedar St. in New Rochelle.
The site, which measures 19,706 square feet, is zoned for as-of-right commercial use and can span up to 137,942 square feet of buildable space. Newmark Executive Managing Director Ronald Solarz and Associate Jonny Yuran have been retained as exclusive agents by the bankruptcy estate of the property owner and approved by the U.S. Bankruptcy Court to solicit competing bids.
The property’s zoning designation provides diverse future uses that will appeal to a broad group of investors and developers. The site can accommodate office, hotel, medical laboratory, storage, or warehousing and distribution space. Potential uses include health and recreational clubs, restaurants, bars or nightclubs, motor vehicle rental agencies or dealerships that cater to the well-established suburban population in the immediate surrounding area, Newmark officials stated.
“New Rochelle’s development-friendly climate has led to rapid growth over the past several years,” said Solarz. “This auction offers the rare opportunity to acquire a prime New Rochelle development site at a substantially discounted basis and begin construction of a new building, ideally-timed to be delivered as the market fully rebounds over the next 24-36 months.”
A “stalking horse” contract has been approved by the bankruptcy court for $4.8 million, against which other offers will compete to acquire the property. Initial bids will start at $4.95 million with a 5% good faith deposit and a 10% winning bid deposit.
The site has undergone extensive due diligence, including geotechnical, environmental, engineering and mechanical, electrical and plumbing (MEP). If a bidder envisions a hospitality use for the site, current ownership has assembled a complete set of drawings for a 146,000-square-foot hotel and entertainment complex featuring two restaurants and a full-scale catering facility.
The property’s LI-H zoning designation allows for an as-of-right 137,942 square feet of development on the 19,706 square foot parcel and provides for a diversity of future uses that can appeal to the broader universe of investors/developers. The site has existing entitlements for hotel development offering potential buyers the competitive advantage of existing plans and approvals for an extraordinary hotel and entertainment complex.
115 Cedar St. offers proximity to the core downtown area and Main Street. It is immediately adjacent to I-95/ New England Thruway and a few blocks from US Route 1 and the New Rochelle Metro North/Amtrak Train Station.
Qualifying bids for the property are due on July 15 with final bids from qualified bidders due on July 19.