The Bronx, which has long fought its image of a borough besotted by arson, poverty and urban decay, is now a hot commodity among the same investors and developers who overlooked it for years. In 2014, it saw an influx of $1.2 billion worth of real estate investment, a 26 percent jump from the prior year, according to data from Bronx Borough President Ruben Diaz Jr.’s office.

Some of the key commercial and retail projects reshaping the Bronx include: the redevelopment by Youngwoo & Associates of the Bronx General Post Office into an open-air food market; and the conversion of the Kingsbridge Armory into an ice-skating complex with nine rinks and the construction of new Bronx headquarters for Fresh Direct, which is moving from Long Island City.

But residential projects are the darling of developers, who pumped $788 million of the $1.2 billion into the Bronx last year. This year, the borough is on track to see a record 8,000 new residential units hit the market, up from 3,697 a year ago, according to Diaz’s office.
Rising land prices in other boroughs, coupled with the Bronx’s proximity to Manhattan, a strong transit system and available development sites, are fueling the feeding frenzy. Developers who’ve already planted their flags see the Bronx as the last bastion for development, while those who haven’t done so already are eager to gain a foothold. Residential rents, while far lower than elsewhere in the five boroughs, are also creeping up, boosting the confidence of market-rate developers who see tremendous upside in the Bronx.

For many, the growth of deep outer-borough neighborhoods like Bay Ridge and Bedford-Stuyvesant gave investors the push they needed to gaze north. Land costs hover around a modest $50 per foot, compared with $638 in Manhattan, according to Ariel Property Advisors, which is active in the Bronx. For comparison, the average land price is $233 per foot in Brooklyn and $168 in Queens.

The housing stock in the Bronx is also appreciating rapidly. The average value of a multifamily unit there is nearly $127,800, according to Ariel Property, up from almost $108,600 last year and just under $93,800 in 2013.

The South Bronx — situated on the Harlem River and a single subway stop past Manhattan — resembles Williamsburg, Red Hook and other industrial waterfront neighborhoods that became magnets for investment. Past the bodegas and auto repair shops, Bruckner Boulevard is at the heart of a neighborhood in transition, and today, vibrant murals cover concrete walls. It’s hard to walk more than two blocks without bumping into a construction site or “coming soon” sign.