July 18, 2025 | New York City
The retail and office portion of the Parkchester community in the Bronx is facing significant financial headwinds, with its valuation recently slashed from $112 million to $71 million, according to Morningstar Credit. Once a strong anchor in the 129-acre planned community, the complex now faces a challenging future amid rising costs and falling revenue.
Managed by the Parkchester Preservation Company, the dozen two-story commercial buildings span over 540,000 square feet and were originally backed by a $65 million loan in 2015. However, property taxes jumped by over $500,000 annually between 2017 and 2019, and tenant occupancy has dropped from 90% in 2022 to just 77% this year. With average rents around $32 per square foot, the income shortfall has significantly weakened debt coverage.
The property’s loan entered special servicing in March 2025 after missing its maturity date, and current income now covers only 38% of debt service. Ownership is actively seeking refinancing, a forbearance, or an extension to avoid further deterioration of its financial standing.
Tenants at the complex include Macy’s (its largest with 170,800 square feet), Marshalls, the U.S. Postal Service, Santander Bank, and PureFitness. Despite stable tenants and nearly 2,000 parking spaces, the financial viability of this historically significant commercial asset—dating back to its 1940 development by MetLife—is now under serious strain.