40 Fordham Street, City Island, NY
Case Study: When Due Diligence Uncovered More Than Expected
In April 2025, 40 Fordham Street came on the market for $899,000. It stood out: a well-maintained two-family home on quiet, waterfront-adjacent City Island. The upper unit had been tastefully renovated with original details preserved, while the lower unit was fully functional with front and rear entrances. On the surface, it looked like a strong investment—or a great live/work setup with rental income. And with low taxes, this mortgage was sustainable with the income generated from the two-bedroom apartment.
I moved quickly and presented a pre-approval letter for $875,000, which they accepted, allowing time for some additional research. But as we dug into the details, serious complications emerged.
Why City Island Is So Special
City Island feels like a secret tucked inside New York City. A small maritime neighborhood in the Bronx, it has the character of a New England fishing village—with clapboard houses, narrow streets, and a local pace that’s more coastal than urban.
It’s surrounded by water, with views of sailboats, marinas, and shorelines in every direction. There are family-run seafood restaurants, quirky antique shops, and a tight-knit community that takes pride in its independence and history. You’re just minutes from Pelham Bay Park and the 6 train, yet it feels like a world apart.
The real estate here is varied—modest cottages next to grand Victorians—and properties rarely come on the market without attention. Finding one with income potential and charm, like 40 Fordham, is even rarer.
The Backstory
Behind the property, a shared garage sat directly across the lot line between 40 Fordham and the neighboring property—both of which had historically been owned by the same individual. While the seller insisted the garage belonged with the neighboring parcel, the tax records and lot drawings showed the garage legally tied to 40 Fordham.
To further complicate matters, a 1961 easement agreement granted 40 Fordham full use of the shared driveway leading to that garage. This meant any attempt to separate the garage from the lot for legal or financial reasons would create a conflicting property rights situation.
Due Diligence Steps
Because the listing and seller were not transparent about these issues up front, I initiated an aggressive due diligence phase:
Tax Record Review:
Confirmed the garage and driveway were assessed as part of 40 Fordham.Title and Easement Research:
Found a 1961 recorded easement giving driveway access to 40 Fordham—further supporting its rights to use and access the garage.
Unfortunately, the seller refused to include the garage, and no viable workaround was proposed. The legal and logistical burden would be on the buyer to untangle everything—with no guarantee of a resolution.
Final Outcome
After we walked away, the listing was pulled entirely. 40 Fordham Street is no longer on the market. It appears other prospective buyers uncovered the same issues and also stepped back. With unclear lot lines and a shared structure sitting between two parcels, this will likely remain a difficult sale until the legal status is resolved.
Key Project Facts
Property: 40 Fordham Street, Bronx (City Island), NY
Listing Price: $899,000 (April 2025)
Offer Made: Full price, no contingencies
Property Type: Legal two-family
Garage Ownership: Disputed; tax records tie it to 40 Fordham
Easement Agreement: 1961 agreement grants driveway rights
Outcome: Deal terminated; listing removed from market
Presumed Reason: Lot line and garage ownership conflict too complex to resolve
Takeaway:
City Island offers something truly unique within NYC—but even a dream setting can’t offset a flawed title. This case was a reminder that great properties come with great responsibility to investigate every corner of a deal. I'm glad we walked away with clarity, and I’ll be watching closely to see how this one unfolds.