Bronx Post Office Sells for $26M Less Than Owners Hoped

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The long-anticipated sale of the Bronx General Post Office didn’t go as planned for Youngwoo & Associates.

Jorge Madruga’s Maddd Equities acquired the landmarked building at 558 Grand Concourse from Youngwoo for $44 million, Crain’s reported. The property takes up an entire block between 149th and 150th streets in Concourse Village.

When Youngwoo put the building back on the market last May, the developer was hoping to fetch a mid-$70 million price, according to Avison Young broker James Nelson. Maddd’s purchase fell well short of that.

“The Bronx General Post Office is a true gem of the South Bronx and fits perfectly with our company’s longstanding commitment to restore and revitalize significant, historic buildings and bring them to life for the benefit of the community,” Madruga said in a statement. “We look forward to working with borough stakeholders to put forward an exciting new vision for this historic structure.”

Youngwoo president Bryan Woo declined to comment.

Youngwoo purchased the building from the postal service for $19 million in 2014 and announced plans for a retail and office hub. Though the firm started renovations — pouring $40 million into the property alongside the Bristol Group — it never completed them.

The building is zoned for commercial and residential use, so redevelopment options include a medical building, school, hotel or apartments. The only known tenants are the Postal Service and Zona de Cuba, a nightclub that spans 15,000 square feet.

MHP Real Estate Services and Banyan Street Capital were in contract to buy the property before the pandemic, but walked away from a $70 million deal to purchase the 173,000-square-foot building in 2019.

The four-story building was constructed in 1935 and became a landmark in 1976. The lobby contains 13 original Depression-era murals, which were refurbished last year.

It’s unclear what Madruga has planned for the site, though affordable housing is in his company’s DNA. His firm is working on a 15-story, 320-unit affordable project at 1959 Jerome Avenue.

Last week, Maddd and Eli Weiss’ Joy Construction Corporation refinanced their luxury multifamily building in Hudson Yards, landing a $96.5 million loan from credit and investment firm Värde Partners for The Lewis at 411 West 35th Street.

— Holden Walter-Warner