1265 Walton Ave.
This 71-unit Bronx multifamily asset at 1265 Walton Ave transacted at $54/SF and $54,788/unit, which is consistent with the lower end of South Bronx and Concourse Village multifamily comps, reflecting the likely rent-stabilized nature of the portfolio. The Traded.co calculator flags a DSCR of 0.94x at current financing assumptions, meaning the deal does not cover debt service at market rates — a meaningful credit concern for any acquisition loan. The cap rate of 5.33% is thin relative to the submarket's risk profile, particularly given the expense burden typical of older pre-war Bronx walk-up or elevator buildings with deferred maintenance exposure. Both brokers are established Friedman-Roth professionals with solid volume track records, lending credibility to the transaction process, though the buyer and seller identities remain undisclosed. Overall, this deal presents moderate-to-elevated underwriting risk driven by negative cash flow at standard leverage and a compressed cap rate in a tertiary Bronx submarket.
Deal Stats
Parties
Seller / Landlord
Seller is undisclosed; represented by Richard Guarino of Friedman-Roth Realty, a seasoned broker with 50 deals and $289.7M in volume, indicating a well-connected and active participant in NYC multifamily dispositions.
Buyer / Tenant
Buyer is undisclosed; represented by Lynda Blumberg of Friedman-Roth Realty, who has a track record of 9 deals totaling approximately $130.2M in volume, suggesting a moderately experienced operator active in the Bronx multifamily space.
Score Analysis
What this score means
A Grade C score indicates this deal may qualify for financing at up to 65% LTV, subject to additional due diligence. Deals at this level require more information before a term sheet can be issued.
Why this score
Negative Cash Flow (DSCR 0.94x)
Deal cannot service debt at market rates, creating immediate refinance risk and limiting lender appetite.
Compressed Cap Rate (5.33%)
Thin yield relative to South Bronx risk profile and likely rent-stabilized income constraints reduces margin of safety.
Broker Credibility
Both Friedman-Roth brokers have substantial track records ($130M+ and $289M respectively), signaling legitimate transaction and market knowledge.
Pre-War Building Risk
Older walk-up/elevator buildings typically carry deferred maintenance exposure and high operating expense burden typical of the Bronx stock.
Market-Rate Pricing
$54/SF aligns with South Bronx comps but reflects tertiary submarket liquidity constraints.
How to improve
The following actions could meaningfully improve this deal's Homage score. Each suggestion is based on the deal's profile, asset type, and current rating — addressing them before approaching a lender can increase approval likelihood and lower borrowing costs.
Stabilize cash flow through rent-regulated rent resets
Target individual lease rollovers and preferential rents to push DSCR above 1.10x without portfolio destabilization.
Execute strategic capital improvement plan (CIP)
Prioritize deferred maintenance remediation to reduce operating expenses and improve building systems reliability, supporting higher NOI.
Identify buyer with stabilization equity or portfolio hold strategy
Buyer with long-term hold horizon or value-add playbook can absorb short-term negative carry and execute repositioning versus opportunistic flip.
