Marcus & Millichap has completed the disposition of a net-leased bank asset that serves as both the headquarters and flagship branch of Ponce Bank, located at 2244 Westchester Avenue in the Bronx. The single-tenant property changed hands for $16,250,000, with the transaction structured around a 1031 exchange. The bank has been in continuous occupancy at this location for 25 years, underscoring the asset’s stability for long-term investors focused on credit tenancy and operating history.
According to Marcus & Millichap’s Steven Siegel, based in the firm’s New York office, the offering attracted substantial investor attention due to its combination of a management-free triple-net lease and scheduled annual rent increases. Investors were drawn to the hands-off nature of the structure, which minimizes landlord responsibilities, and to the predictable income growth embedded in the lease. Siegel noted that the site stands out from typical single-tenant net-lease offerings because it occupies a comparatively large parcel and is positioned directly adjacent to a subway stop, attributes that contribute to both current performance and longer-term optionality.
The marketing campaign generated a competitive bidding environment, ultimately narrowing to three active bidders in the final stage. These buyers pushed pricing higher and cap rates lower, with the transaction closing at a reported capitalization rate of 6.1%. The buyer was an all-cash 1031 exchange investor, enabling a streamlined closing process without financing contingencies. The seller, Arc Trust, engaged Siegel to exclusively market the asset and manage the sale process.
On the buy side, the 1031 exchange investor was procured by Judson Kauffman of Surmont, who brought the exchange capital to the deal. While the buyer’s identity was not disclosed, the transaction structure highlights the continued role of exchange-driven demand in the net-lease sector, particularly for assets with established tenants and long-term occupancy histories. Ponce Bank’s status as both the headquarters and primary flagship branch at this address further reinforced the property’s profile as a mission-critical location for the tenant.
The combination of management-free NNN lease terms, annual escalations, transit access, and perceived future development potential around the large parcel helped differentiate the asset from more standard single-tenant offerings. The sale illustrates how competitive bidding can compress cap rates for well-located net-lease bank assets, even when investors are focused primarily on income durability and ease of ownership.
