The Bronx is putting itself back in the game.

Recent articles in both the trade and mainstream press have focused on the rebound of the property markets in lower Manhattan five years after the tragic terrorist attacks on the World Trade Center, and rightfully so. It's a spectacular recovery.

Meanwhile, however, up in the Bronx there's another recovery taking place, one that has not received much attention but that is spectacular in its own right.

Consider the fact that since September 11, 2001, market values in the Bronx rose by 8.5% compared to values in Manhattan which increased just 5.4%, according to the Department of Finance.

Another indicator that the Bronx is likely to be the "new West Side" is the fact that, over the last four years, more private sector jobs have been created in the Bronx than in any other borough. Bronx Borough President Adolfo Carrion began his State of the Borough speech last February with that fact.

Carrion has had a lot to crow about over the past several years. In his 2005 State of the Borough speech he noted that: "2004 was the year of the building boom in the Bronx. Over 1 billion dollars was invested in the borough for development projects ranging from commercial retail space to residential housing. Total investment in the Bronx has more than doubled in the last three years with property values increasing 40% during this period."

The Capin firm has long believed in the property values in the Bronx. Well before he founded the firm in 1997--when the borough was still to some extent considered a national symbol of urban blight--Luca Capin saw the potential that existed there.

With a particular focus on the "quiet deals," the firm has evolved over the ensuing years. It is now at the top of the top tier of brokerage firms in New York, on target for completing 300 transactions this year--a deal a day.

In fact, one of our long-time clients who invested early in Bronx properties was so delighted with the success he has had that he named two of the buildings he bought after Capin. He bought 94 buildings and, to memorialize his relationship with the firm, he called one Luca LLC and the other Turkish LLC.

We continue to believe in the value proposition of Bronx real estate and that there will be a strong upside for some time to come. In fact, we believe that because of such indicators as low interest rates and cheaper fuel prices the market, in general, in New York for commercial real estate is hotter than ever with the lot to hottest spots being the over emerging neighborhoods several of the outer boroughs.

The proof is in what happened after the recent groundbreaking for the new Yankee Stadium. Brokers and investors started flocking to the area around it and as far south as Alexander Avenue in the South Bronx where a townhouse was recently listed for close to $1 million (actually $780,000) and even east of Hunts Point by the dozens.

In addition, there have been these additional developments to further bolster the argument that the Bronx is hot:

* The Bronx Museum of the Arts has announced an $18 million expansion program doubling its square footage.

* Neighborhood train stations like Hunts Point have been restored and become much safer and inviting.

* Artists and food companies are finding workspace in former factory buildings not only cheaper than Manhattan but within a stone's throw had a from a highly-capable about and willing workforce.

Finally, as prices in Manhattan continue to rise, more and more investors find themselves searching for deals in the Bronx because of its proximity to the center city and the numerous transportation options that are offered, including subways, buses and Metro North commuter lines. In addition, highway access to Manhattan is facilitated by numerous river crossings, many of which are toll free.

A recent transaction in which we participated is perhaps the most telling indicator of how hot the Bronx market really is.

We recently sold a portfolio of 32 buildings at an average of 8 1/2 times the rent rolls. Four years ago, such properties were selling at only five times the rent roll.

BY PETER VANDERPOOL, MANAGING DIRECTOR, CAPIN & ASSOCIATES