Development Q2 2015

Transcription

Development Q2 2015

Development News Highlights
MANHATTAN - 2 ND QUARTER 2015 REPORT
Looking Ahead
Sunnyside Yard Redevelopment Proposal Sparks Inwood Project Vision
Just over a month after Mayor de Blasio’s proposal to develop affordable housing on top of the 200-acre Sunnyside Yards facility, another
proposed rezoning was suggested of the 100-acre area located in the neighborhood of Inwood along the northernmost tip of Manhattan.
Primarily zoned for manufacturing, a Manhattan councilman has introduced the proposal to redevelop the 207th Street yard bound
by 10th Avenue and the Harlem River to the east and west, and 215th- and 207th Streets to the north and south. The vision of a
“technology community” complete with residential, commercial, and retail development spearheaded by large institutions will most
likely encounter opposition by manufacturing and industrial supporters, the industry already being squeezed by heightened residential
and hotel development.
The Metropolitan Transportation Authority’s (MTA) 207th Street rail yard currently serves the C, A, and 1 subway trains in addition to
serving as a storage facility for rail cars being retired, scrapped or restored for the New York Transit Museum. It is anticipated that the
proposal which would need to go through the Governor’s office in Albany will likely face similar dismissal as did the Mayor’s office with
the Sunnyside Yard proposal. Similarly to Sunnyside Yards, the project would require decking that despite suggestions of defraying part of
the costs by the sale of the MTA’s air rights to the city, sources reiterate the expense could be prohibitive. It was further noted that today’s
economics for building affordable housing is already challenging without adding the additional costs of building over a utilized rail yard.
Hotel Conversion Bill Passes
The city council has passed a bill in March that imposes a 2-year moratorium on hotel-to-condo conversion, affecting all hotels with over
150 rooms. Under the new policy, hotel owners are prohibited from converting over 20% of their rooms to residential units without
petitioning the Board of Standards and Appeals to obtain a variance. The new legislation would affect the recently purchased Waldorf
Astoria, 301 Park Avenue. Acquired by Anbang Insurance Group, Ltd. earlier this year, the Beijing-based firm intends to convert the hotel’s
upper floors into luxury condominiums. The city council plans to use the 2-year period to further study the effect of hotel conversions on
jobs and the city’s economy.
Industry sources have noted that many of the hotel jobs pay well above the city’s median income, and as a result of the over 1,000 hotel
rooms that have already been converted, several of those jobs have been lost. However, critics of the bill point out that it could represent
an infringement of private property rights; potentially discourage new hotel development which is currently robust; and subsequently
new job creation.
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Looking Ahead (cont’d)
Midtown Community Boards Calls for Tall-Building Moratorium
The ongoing construction of high-rise developments at the southern border of Central Park has prompted the Manhattan Community
Board 5 Central Park Sunshine Task Force to once again seek a moratorium on new developments over 600-feet until height limitations
can be established. Prompted by concerns of new construction increasingly shrouding the park into shadows, the moratorium would
include blocks between Central Park South and 53rd Street to the north and south; and between 5th- and 8th Avenues to the east and
west. However the request for height limitations would affect zoning and changes that typically require a thorough study by the City
Planning Commission in addition to undergoing a public-review process; and although a so-called moratorium might be passed as a local
law, it would reportedly be unprecedented in the city’s modern history. Development along the 57th Street corridor has been very active
with several high-rise towers in different stages of planning and construction including:
•
217-225 West 57th Street – 1,795 feet
•
111 West 57th Street – 1,428 feet
•
1 Park Lane, 36 Central Park South – 1,210 feet
•
53 West 53rd Street – 1,050 feet
•
One57, 157 West 57th Street – 1,005 feet
•
220 Central Park South – 950 feet
•
123 West 57th Street – potential 761-1,000 feet
Sources:
http://www.dnainfo.com/new-york/20150515/midtown/city-council-bill-places-two-year-moratorium-on-hotel-to-condo-conversions
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Larger Midtown East Rezoning Proposal Takes a Welcomed Step Forward
The massive up-zoning initiative proposed back in 2012 during the Bloomberg administration was created in an effort to spark revitalization
of the area anchored by Grand Central Terminal, as well as preserve historic landmarks. The proposal met with rejection by the City Council
members in November 2013 and was ultimately withdrawn prior to former Mayor Bloomberg stepping down.
Recent news brought the welcomed announcement that the proposal has returned to the city’s agenda. The Midtown East steering
committee, a group representing a wide range of interests, is planning to send its recommendations to the Department of City Planning
(DCP) by the end of June after 9-months of ongoing discussions. Similarly to the recently approved 5-block Vanderbilt Corridor, developers
would be able to build higher density projects within the nearly 20-block-long area in Midtown East in exchange for transit improvements.
Upon review, the DCP will compose a draft rezoning proposal for formal, public review.
In addition to public transportation improvements, other recommendations by the steering committee reportedly include:
•
The transit enhancements recommendation would allow Larger projects located near public transportation within the area roughly
bound by East 39th- and East 57th Streets, and 3rd- and 5th Avenues would be able to proceed without City Council approval.
•
Additional density would be achieved through awarded bonuses for the development of public plazas or air-rights transfers from
designated landmark buildings whose owners would also no longer require council approval.
•
Pricing for air rights will have an established minimum per square foot figure, and a percentage of the proceeds will go into an areawide public-improvements fund.
•
Older buildings that are now over-built due to previous zoning changes would be allowed to construct new buildings to existing
measurements if contributions to the public-improvement fund are made.
•
A floating recommendation to have the Landmarks Preservation Commission (LPC) designate, or officially consider those buildings
to be eligible for air right sales by the time the DCP certifies the rezoning. Currently 38 within the area are designated landmark
buildings, with another 5 that had been calendared for consideration.
Sources:
http://www.wsj.com/articles/rezoning-of-midtown-east-advances-1434331014
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The Trees Won’t be the Only Green in the City’s Landscape This Spring
As the city pushes to become more environmentally friendly the de Blasio administration’s One City, Built to Last: Transforming
New York City’s Buildings for a Low-Carbon Future, that has been rebranded OneNYC and represents an update of the Bloomberg
administrations PlaNYC proposal, intends to achieve an 80% reduction of greenhouse emissions in the city by 2025 from the 2005 levels.
Focusing on energy used to heat, cool and power buildings, reportedly accounting for about 75% of the city’s greenhouse emissions, the
administration plans to launch its “retrofit accelerator” program to begin retrofitting about 20,000 public buildings. Comprised of roughly
60% government-assisted affordable or rent-stabilized buildings and 40% government-assisted affordable or rent-stabilized buildings
which make up about 15% of citywide square feet, it is expected that the emissions reduction process will create 3,500 construction jobs.
Privately-owned buildings will also be required to comply, the city offering financial incentives and support via the newly created Building
Energy Exchange. Initially compliance with the program’s efficiency guidelines for buildings over 25,000 square feet will be voluntary;
unless efforts to comply fall short of the administration’s expectations, at which point requirements to upgrade lighting, perform energy
assessments and disclose annual energy use will become mandatory. However in today’s more health oriented and environmentally
conscious society, the trend of upgrading buildings to enhance “green” features has become a strong marketing tool with landlords
already taking initiatives in that direction, using the different levels of certification to differentiate their portfolio and attract tenants.
Leadership in Energy & Environmental Design (LEED) an environmental rating program which was launched in 2000 has become a
veritable building standard.
Recently an industry study’s findings, from results of a survey of 3,000 tenants in 20 of Manhattan’s sustainable buildings, reportedly
revealed that access to natural light and indoor air flow and quality were 2 of the most important features that tenants seek in a building.
A new pilot program was launched in October 2014 by the International WELL Building Institute (IWBI) whose mission is to improve
human health and wellbeing through the built environment. The program dubbed WELL Building Standard
is 3rd-party certified by IWBI in collaboration with the Green Building Certification Institute (GBCI), which
administers LEED certification. The WELL program offers 3-levels of certification — Platinum, Gold and Silver,
based upon performance requirements in 7-categories: air, water, nourishment, light, fitness, comfort and
mind. In differentiating both certification programs, some sources note that the LEED program addresses the
relationship between the building and the environment while the WELL program deals with the relationship
between the building and its inhabitants.
Leading the way in Manhattan, L&L Holdings’ 425 Park Avenue (Plaza) project will be the first to receive the
WELL Building Standard Certification. Upon expected delivery of the tower in 2018, the International WELL
Building Institute will conduct tests and inspections to ensure the project has met the required standards
for certification. As a result, L&L Holdings has included air filtration, advanced water purification, a dedicated
wellness center and terraces on high floors with Central Park views that will serve as common space.
While the cost of sustainability is incremental for new construction, retrofitting an older building can present
more challenges both structurally and financially. The collaborative team of Clinton Climate Initiative1 and the
Rocky Mountain Institute2 developed the Empire State Building Model which was a case study for deep
energy retrofits that encompassed a whole-building analysis of the Empire State Building, illustrating that a
retrofit can successfully achieve energy cost savings of over 50% which could overtime offset the costs.
425 Park Avenue - Rendering
1
Clinton Climate Initiative: develops scalable projects that can be tailored to local conditions while also serving as innovative models for tackling global climate
change - http://www.wellcertified.com/about
2
Rocky Mountain Institute: advances market-based solutions, engaging businesses, communities, and institutions to cost-effectively shift to efficiency and
renewables - http://www.rmi.org/Home.
Source:
http://www.rmi.org/Content/Files/ESBCaseStudy.pdf • https://www.clintonfoundation.org/our-work/clinton-climate-initiative
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421-a Tax Exemption Program Pushes State Legislators into Overtime
A stalemate in Albany at the end of the June legislative session left the future of the popular tax incentive program for housing development
undetermined, resulting in an expiration of the current tax incentive program on June 15th. that was temporarily thwarted by Albany’s
approval of a 6-month extension on June 23rd. Mayor de Blasio had hoped that the May submission of the city’s proposed modifications
to the 421-program would have allowed ample time for review by the NYS legislature and approvals as drafted by the city.
However recent news brings the welcomed announcement of a bill outlining a revised tax-exemption program being drafted during an
overtime session of the state legislature, but is still pending approval by the Senate and the Assembly and signed by Governor Cuomo.
Despite what appears to be a significant step forward towards an accord between the city and the state, as well as nearing approvals
in Albany, the entire program will expire on January 15, 2016 if the real estate and the construction-trade unions cannot agree upon a
prevailing minimum wage for the new mandate requiring that in order to qualify for the tax breaks, projects must be built by workers
earning prevailing wages. While the wage mandate will likely only be required for large projects in expensive neighborhoods, any inclusion
would be a win for construction unions, since the old program did not require prevailing wages for any project. The mandate’s inclusion
was opposed by the de Blasio administration on the presumption that it will result in fewer affordable units.
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421-a Tax Exemption Program (cont’d)
Albany’s Draft Bill Overview:
•
The current 421-a program will be extended for 6-months.
•
The new 421-a program will have a term of 4-years; and the abatement term will be extended to 35-years for affordable units versus
the current 25-year term.
•
Mayor de Blasio’s proposed 3-tiered system will replace the previously relied upon geographic boundaries that reportedly allowed
many lucrative developments to receive the tax exemption unconditionally. It is intended that developers will make their choice
based upon market conditions, but be required to designate at least 25% of the project’s units for affordable housing — projecting
it will create double the current 12,400 below-market units over the next 10-years. Each tier will have a proportional affordable housing
mandate; and the incentives would be provided regardless of the state of the market. As-of-right developments will still have the
option to not include affordable units and forfeit the tax break.
-
The most valuable tax break would be offered for developments in rich areas where property values as the highest; and developers
would be required to subsidize very low-income tenants in 25% of their units;
-
Development in poor areas will require 30% of the units designated for a broader mix of incomes and comes with a city subsidy.
•
Units for households earning 130% of area median income will no longer qualify as affordable, thereby no longer meeting the mandate
that previously allowed the market-rate units to get a 25-year tax break.
•
Some lower priced condominium developments in the outer boroughs will continue to be eligible to receive the tax break, provided
the buyers agree to make the condo their primary residence for a minimum of 5-years. The revision is in contrast to Mayor de Blasio’s
proposal that no condominium development be eligible; an elimination that some sources anticipated would hinder developers’ ability to
offer affordable units in lower income neighborhoods like Brooklyn’s Canarsie and Midwood, or the outer edges of Bronx and Queens.
•
Developers who receive tax breaks to build apartments with affordable units can no longer create so-called “poor doors” which
are separate entrances constructed within the same development to access affordable units.
While Albany’s drafted bill represents a partial win for the city administration, Mayor de Blasio’s earlier proposal had intended to extend some
of the tax abatements of the current program to landlords who qualified for 421-a prior to 2008 when the abatement was last amended. In
addition, other city administration revisions had stipulated that:
•
Tax breaks would continue to be received on half of a building’s property tax for another 15-years in exchange for an additional 5% of
the building’s units being designated for affordable housing that would be affordable to families making up to 130% of the area
median income.
•
Average tax breaks for rental buildings would be reduced by 1/3rd from the current $573,000 per unit.
•
A new “mansion tax” will be established, imposing a 1% flat rate on units that sell for over $1.75 million; and a 1.5% marginal rate
for those selling for over $5 million, projecting that an additional $180-$200 million would be generated that would go towards the
funding of additional affordable housing.
Whether or not the Mayor’s revised 421-a program as originally drafted would have continued to encourage rental development is
uncertain. Despite offering additional density that would be further increased in high-density neighborhoods that will benefit from zoning
changes, it may not be enough to make rental projects financially feasible. In addition, Mayor de Blasio’s proposed mandatory inclusionary
zoning program requiring that all new construction be required to designate some of the units as affordable housing, would have added
additional financial challenges.
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421-a Tax Exemption Program (cont’d)
Sources anticipated that the NYS Assembly was pressured to continue the 421-a abatement program in exchange for the NYS Senate
agreeing to extend The Rent Stabilization Law that expired at the same time. However the nearing expirations had likely prompted State
Legislature to debate the merits of extending and/or modifying the legislation that currently governs rent regulatory policy in New York City.
Mayor de Blasio has called for the elimination of a provision of current rent stabilization law that allows landlords to charge market rates
once a rent-regulated unit reaches a monthly threshold of $2,500; a provision that currently accounts for the loss of close to 2/3rds of the
stabilized units lost each year. Taking a closer look, former Rent Guidelines Board chairman Marvin Markus has reportedly suggested that
vacancy decontrol should be ended and replaced with a “market-to-market” system. It was further suggested that the city’s affordability
crisis will not be resolved by simply focusing on increasing supply of affordable housing; but will also require a complimentary strategy
to increase “effective demand” on the housing consumer, with the burden of subsidization transferred from landlords to society at large
using the successful rental assistance provided to eligible rent burdened senior citizen and disabled households as a model.
Below is a snapshot of the key components of the proposed “market-to-market” system:
1.
All tenants in occupancy who are currently under rent regulation would continue to be protected against unregulated rent increases
by being granted the right to renew their existing leases for one-year at a rate specified by the Rent Guidelines Board. The option to
enter into a two-year lease would be eliminated.
2.
Upon vacancy, units presently in the rent regulatory system would effectively be “marked-to-market” upon the entering into a new
lease when an owner and tenant agree on a lease amount and term. Units “marked-to-market” will re-enter Rent Stabilization and
the occupying tenant will, upon lease expiration, be entitled to renew their lease for one year at a rate specified by the Rent
Guidelines Board. This will be true in most situations.
3.
The “marked-to-market” concept will eliminate several complicated and confusing provisions of the current law, including the concept
of so-called “preferential rents”. All allowable increases will be calculated from the actual “market” rent entered into.
4.
The “marked-to-market “approach would also eliminate the need for a vacancy allowance and apartment physical upgrade increases.
5.
“Qualifying” tenant households who are living in rent-regulated apartments would have their rent frozen; exempting them from future
rent increases.
6.
Owners of residential units that have qualifying tenants whose out-of-pocket rents remain at the previous year’s level would recoup
the annual allowable lease increases from the City of New York by applying dollar-for-dollar tax credits to their property tax bills.
Source:
https://s3.amazonaws.com/s3.documentcloud.org/documents/2082853/rent-regulatory.pdf
http://www.capitalnewyork.com/article/city-hall/2015/05/8567610/why-de-blasios-affordable-housing-proposal-won-over-developers
http://www.wsj.com/articles/developers-scramble-for-expiring-tax-break-1434416759?mod=rss_US_News
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Project Filings with City’s DOB in May Reach 2015 High
Permit applications filed during May were the highest number for 2015 so far, rebounding after the 12-month low of April. Manhattan’s
proposed 1.5 million square feet of residential development accounted for close to 40% of the borough’s total residential space filed in
2015. While Manhattan claimed the title for the largest number of residential filings during May amongst the 5 boroughs, Brooklyn took
center stage for 2015, boasting 71 projects filed in total over the 5-month period.
Residential
Borough
Hotel
# Projects
Units
Sq. Ft.
# Projects
Commercial
Sq. Ft.
# Projects
Sq.Ft.
Total Sq. Ft.
Manhattan
10
1,048
1,499,653
0
0
2
138,907
1,638,560
Brooklyn
8
326
336,869
3
211,887
3
84,841
633,597
Queens
8
570
658,605
1
60,169
1
15,049
733,823
Bronx
4
118
112,546
0
0
1
75,584
188,130
Total
30
2,062
2,607,673
4
272,056
7
314,381
3,194,110
Residential Permit Applications Filed
January 1, 2015 – May 31,2015
Borough
# Projects
Units
Sq. Ft.
Manhattan
30
3,070
3,812,702
Brooklyn
71
4,190
3,863,143
Queens
37
3,150
2,992,745
Bronx
17
1,180
1,129,057
Total
155
11,590
11,827,647
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Construction Spending on the Rise
New York Building Congress: NYC Construction Spending Reached $36 Billion in 2014
According to a report released in April, last year’s overall construction spending throughout New York City totaled $36 billion, representing
a 26% increase year-over-year. Improved spending in all 3 major sectors makes 2014 standout, stimulating an additional $21 billion in total
spending in other sectors of the city’s economy divided between businesses that directly serve the construction industry ($10.9 billion);
and the indirect consumption spending by workers employed by the construction and support services ($10.1 billion), for a total output
of $57 billion.
Residential – The $11.9 billion spent on residential development resulted in a record increase of 73% year-over-year (inflation was factored
in). The percentage of unit growth was not proportionate with only 20,329 new housing units added to the market in comparison to the
over 30,000 units added annually between 2005 and 2008.
Government – Construction spending in areas including mass transit, public schools, roads, bridges, and other essential infrastructure
totaled $1 billion, representing a 7% year-over-year increase.
Non-Residential – A total of $9.8 billion was spent on projects including office space, institutional development, sports/entertainment
venues, and hotels, representing a 20% increase from last year. Activity in the Hudson Yards and the resumed construction of 3 World
Trade Center have significantly accounted for the rise in spending.
Gross City Product (GCP) - Construction spending represented about 4% or $31.6 billion of New York’s’ $762 billion GCP in 2014.
Government spending accounted for 2%, while residential and non-residential contributed 1% each.
Employment – Direct employment increased moderately to a total of 122,975 jobs, creating another 67,000 in fields that service the
construction industry including lawyers, accountants, and suppliers; as well as 63,000 jobs that were induced by the increased household
earnings from direct employment.
Source:
http://www.buildingcongress.com/outlook/
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Keeping Affordable Development Attractive & Within Budget
The city’s ongoing need to increase the availability of affordable housing continues to challenge today’s developers as land prices and
construction costs continue to rise. A few of the city’s architectural firms suggest that designing affordable projects to deliver an attractive
building can be achieved without significantly affecting budget. The difference in a project’s appearance can be as simple as the colors of
the building, brick pattern, juxtaposition of materials, and the arrangement and size of the windows. It has been further pointed out that in
particular for supportive housing1 developments where residential units are kept very simple, it is important to have abundant natural light
throughout. Corridors and community rooms should offer something special since it is where tenants will spend the bulk of their time.
In addition, while green and sustainable measures can raise construction costs upfront, in the long run they will help reduce costs.
Recommended installations included energy efficient boilers and windows, energy star motion sensors, solar panels, and green roofs
which absorb storm water runoff and reduce the “heat island effect” which accounts for cities’ being hotter than rural areas.
Even though design can play a key factor in the product delivered, the maximization of floor area is crucial and in some cases has caused
a project’s attractiveness to be sacrificed. As a result many architects are reportedly in support the city administration’s proposed zoning
change that in exchange for affordable development would allow taller buildings with slightly more square footage and the potential to
accommodate higher ceilings and further setbacks from the street.
Examples of 2-projects included:
Via Verde, 700 Brook Avenue (South Bronx) – The sustainable development that opened in 2012
revitalizing a formerly contaminated industrial site. As part of the Bloomberg administration’s New
Housing Marketplace plan, a residential complex was delivered adding 151 low-income units and
71 co-op units to the area. The project was awarded to co-developers Jonathan Rose and Phipps
Houses Group as a result of a competition organized by the Commissioner of the city’s Department
of Housing Preservation & Development.
Construction of the green and energy-efficient multi-building project designed by a team of Grimshaw
Architects and Dattner Architects utilized 20% recycled materials with over 20% of total building
materials having been manufactured locally; and over 80% of the construction and demolition
waste recycled. In addition, the buildings boast green roofs, solar panels, panoramic windows and
sunshades. A mix of materials accented by brightly colored panels create the buildings’ facades.
Greenhope Kandake House, 435 East 119th Street (Harlem) – The new state-of-the-art supportive
housing project developed by Galaxy Construction delivered an 8-story “green” building designed
by United Architectural Initiatives (UAI) in 2011. The substance abuse facility and residence features
high efficiency central HVAC system using gas-fired boilers; energy star light fixtures throughout;
highly insulated exterior walls; motion sensors for stairwell and hallway lights; low consumption
plumbing fixtures’ materials with low volatile organic compounds (VOC’s); green roofs with plantings
and high reflective pavers; materials high in recycled content; and maximized natural light offering
a very “un-institutionalized” environment. The building’s façade weaves together a combination of
colors and materials intended to mimic a West African cloth.
Via Verde, 700 Brook Avenue
Greenhope Kendake House
435 East 119th Street
1
Supportive Housing: is a combination of housing and services intended as a cost-effective way to help people live more stable, productive lives, and is an active
“community services and funding” stream in New York and the US in 2013. Supportive housing is widely believed to work well for those who face the most complex
challenges—individuals and families confronted with homelessness and who also have very low incomes and/or serious, persistent issues that may include addiction
or alcoholism, mental health, HIV/AIDS, diverse disabilities (e.g., intellectual disabilities, mobility or sensory impairments) or other serious challenges to a successful
life.
Source:
http://www.archdaily.com/245925/via-verde-officially-opens/
http://geisscommunications.com/pdf/kandakehouseopening.pdf • http://www.greenhope.org/news/release-Kandake-House.shtml
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Land Costs Nearing Unfeasible Limits for Continued New Development
The city’s escalated land prices continue to rise at a rate that is significantly steeper than that of residential condo and co-op units,
prompting sources to re-evaluate the current market to determine the point where land costs exceed levels that no longer justify new
development. The widening gap has created some concerns amongst the lending community, further heightened by signs that the high-end
luxury market is beginning to soften. Due to better financial feasibility, luxury condominium development has bee the driving frontrunner of
the city’s construction industry in recent years. New rental developments which have been far and few between rely heavily on tax credits
to offset costs, or as an economic alternative some developers opt to lease the land instead of buying it. Below is a snapshot of statistics
representative of a combined overview of results compiled by industry sources and New York City-based real estate appraisal firm Miller
Samuel, Inc.
Manhattan
30% - The increase in the buildable per square foot of sold land south of Manhattan’s 96th Street between 2013 and 2014.
13% - The increase in the average per square foot price for condos and co-ops in Manhattan, with the vast majority of sales below 96th Street.
29% - The increase in prices that developers charged for new condos between 2013 and 2014 resulted in an average price of $1,851 per
square foot, falling about 1% below the 30% hike in land prices.
Between 2009 and 2011, average per square foot land prices below 96th Street fell to $322 per buildable-square-foot, significantly rebounding
between 2011 and 2014 by 79% to nearly $579 per buildable-square-foot. In comparison newly developed residential units — the majority
of which were condominiums, saw a price increase of 49%, rising to $1,851 per square foot during the same time period.
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Land Costs (cont’d)
Brooklyn
While land prices in the outer-borough remain below that of Manhattan, Brooklyn’s land prices are escalating at a faster pace. The average
per buildable-square-foot figure of $183 represented a 96% increase over the 5-year period of 2009-2014, in comparison to the slower 67%
rise in prices for newly developed condo units that reached $836 per square foot in 2014. Land cost escalation between 2013 and 2014
resulted in a 36% increase reaching an average of $183 per buildable-square-foot, surpassing Manhattan’s year-over-year increase of 29%.
Queens
As land prices continue to climb in Manhattan and Brooklyn, Queens has seen an uptick in buyer and developer interest. Neighborhoods
that lie along the East River have drawn the most attention such as Long Island City, particularly in micro-neighborhoods like Court Square,
Queens Plaza and Hunters Point where land prices have risen higher. Average land prices gained the most significant change during the
5-year period between 2009 and 2014, climbing 104% from $67 per buildable-square-foot to $137; in contrast to the more moderate 17%
increase year-over year between 2013 and 2014, and a year-end average figure of $137.17 per buildable-square-foot. New development
condo-units in Long Island City are currently commanding average prices in the neighborhood of $900 per square foot.
Looking ahead, it is anticipated that areas north of the Queensboro Bridge along Vernon Boulevard where land prices have remained flat,
will begin to see more activity when the Cornell Tech project on Roosevelt Island opens in 2017. Currently zoned manufacturing, sources
predict that the corridor could see some repositioning of factories into office use as tech start-ups begin to establish outposts in the area
of Long Island City that is located directly across the East River from the new campus.
Bronx
Despite an uptick in development activity, the borough has seen only moderate increases in average land prices. The nominal 9% rise over
the 5-year period between 2009 and 2014 resulted in a year-end average price of $48.72 per square foot; and a 17% increase year-over-year
between 2013 and 2014. Reasons for what appears to be an under-performance of land in the Bronx has in part been due to additional
challenges facing new development such as the issues of dealing with tenants residing in existing rent-regulated units, and the several cityowned housing projects which can’t be demolished tending to discourage new development.
Staten Island
The only borough to incur a softening of average land prices over the last 5-years, falling 17% between 2009 and 2014 to $37.62 per square
foot (not based upon buildable-square-foot); and a year-over-year drop of 7% between 2013 and 2014. However despite the downturn,
there has been a resurgence of interest in the area of St. George which lies on the northeast tip of the borough. Prompted by rebounding
housing prices, the neighborhood could create an ideal opportunity for developers to buy land at the lower end of the market; and sell newly
developed homes at elevated prices. Prices for newly constructed one- and two-family homes rose 6% during the 4-year period between
2009 and 2013, in contrast to new condo-unit prices which incurred a significant downfall of 36% during the same period. Some sources
have noted that several brownfield1 sites in Staten Island have accounted for average land prices falling; but on the upside, efforts to revive
the boroughs waterfront areas that previously relied on city initiatives is reportedly seeing an increase in support by private funding.
1
Brownfield sites: former industrial or commercial sites where future use is affected by real or perceived environmental contamination.
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Developing Trends - Medical Facility Development Evolves
Demands of the country’s more cost-conscious health-care system are giving rise to a change in medical facility development, as newer
projects are being designed to consolidate doctors, specialists, and technicians under one roof. In response to healthcare cost controls and
regulatory changes, hospitals throughout the U.S. are exploring new approaches to medical-office design in order to continue to meet the
changing needs of today’s patients. Due to pressure for shorter hospital stays, outpatient treatment will become more efficient and more
convenient for patients.
Currently over 3.4 million square feet of medical-office space costing $1.8 billion is under development in the New York area, according
reported statistics from health-care real estate data firm Revista. Investors are also benefitting from the surge in healthcare development.
Data compiled by the National Association of Real Estate Investment Trusts revealed that healthcare REITS’ shares produced a total of
35.5% in returns (including dividends) in 2014.
In New York City where raw land is almost non-existent, construction projects are replacing old
hospital facilities with emergency rooms being transformed into urgent-care centers; and other
outdated properties are being redeveloped into outpatient surgery facilities. Astoria’s Mount Sinai
Queens demolished an historic medical building in 2013 to make way for a $125 million expansion
that is expected to be completed in 2016. The new facility on Crescent Street, situated behind the
existing 30th Avenue hospital will have 7 new state-of-the-art operating rooms; and an integrated
multi-specialty “polyclinic” that will offer patients convenient “one-stop shopping” for primary and
specialty care, diagnostic services, as well as enhanced laboratory services. In addition both primary
care doctors and specialists will be housed in the facility, with the hospital planning to add 160 medical
and support staff people.
More recently, the Maimonides Medical Center broke ground in March for the 7-story, 140,000-squarefoot facility in Borough Park, Brooklyn. The new building will replace 3-story townhouses on 9th
Avenue between 48th- and 49th Streets that formerly served as medical-office space requiring staff to
traverse from building to building to manage patient care. The partnership of Minneapolis, MN-based
Frauenshuh HealthCare Real Estate Solutions will be developing and managing the property, Health
Care REIT Inc. will be its owner, and Maimonides will occupy the facility as a tenant. The deal further
benefits Maimonides, renting versus ownership will allow the hospital to free up capital for investment
in upgrades to imaging technology and advanced operating rooms. In today’s world of people on the
go who are increasingly shopping for cost-saving healthcare plans, the need for hospitals to improve
efficiency has become paramount.
Source:
http://www.mshq.org/static_files/MSQ/Files/QNews%20Fall%202013.pdf
http://www.wsj.com/articles/new-yorks-latest-medical-facilities-may-simplify-seeing-the-doctor-1427071460
Mount Sinai Queens - Rendering
Maimonides Medical Center - Rendering
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Garment District Hotel Development Continues Upward Trend
The Garment District has seen a growing diversity over recent years amongst its office tenants, as businesses outside the fashion industry
migrate to the neighborhood attracting a new mix of retail and spike in hotel development. The transition that continues to escalate has met
with mixed response; and the recent eviction proceedings against tenants at 338-340 West 39th Street filed by hotel developer McSam
Group further solidifies its direction. The growing interest by developers that are taking advantage of the neighborhood’s M1 zoning has
reportedly added 30 new hotels over the last 10-years with 10 more in the pipeline; and quickly shifting the Garment District away from its
longtime standing as a garment center and the backbone of the fashion industry.
McSam Group acquired the 45,717-square-foot industrial loft building for $22.5 million in January. The property will likely be combined
with adjacent 350 West 39th Street acquired in November for $112.15 million to create a single hotel development assemblage. In order
to make way for the new project, upon the January closing, notices were reportedly served to existing month-to-month tenants notifying
them that their leases would expire on February 28th with remaining tenants after March 5th receiving court papers announcing illegal
occupancy. Despite efforts by lingering tenants to relocate within the neighborhood and remain in close proximity to customers, they have
been confronted by rising rents and a lack of interest from landlords who are now more predominantly seeking office tenants.
Manufacturing businesses have been somewhat protected by the district’s current special zoning regulation enacted in 1987 obligating
landlords to reserve half of their property space for manufacturing purposes. However, the increasing push by landlords and the growing
shift of manufacturing to overseas has prompted the City Planning Commission (CPC) to once again consider a re-evaluation of the zoning
that could further ease or eliminate the requirement.
McSam Group has established a strong foot-hold in the area, with several other hotel projects planned including:
585-587 Eighth Avenue – The 35-story, 88,806-square-foot hotel is currently under construction; and the 271-key Holiday Inn hotel is
expected to deliver this year.
326 West 37th Street – The 22-story, 88,503-square-foot hotel is currently under construction. The hotel brand for the 240-key project that
is expected to deliver in 2016 has yet to be announced.
334 West 36th Street – Plan applications were filed in December for a 20-story, 123,000-square-foot hotel development. A 406-key Midtown
West hotel will rise on the former Postgraduate Center for Mental Health acquired last August.
Other area projects in different stages of planning and development include:
560 Seventh Avenue – Plans were filed in March to construct a new 29-story, 118,508-square-foot Dream Hotel to be constructed by the
development team of Soho Properties, MHP Real Estate Services, and Hampshire Hotels Management;
306 West 40th Street - Applications for the construction of a 30-story, 44,324-square-foot budget hotel located across the street from the
Port Authority Bus Terminal by developer Jimmy Shao;
310 West 40th Street – The 42-story, 117,280-square-foot hotel will add 287-keys;
350 West 40th Street – The 35-story, 113,719-square-foot hotel that is currently under construction will add 594-keys.
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Midtown (cont’d)
Far West Side Car Dealerships Strapped for Space
As development activity continues at a robust pace along the city’s Far West Side, some sources are speculating that the area which serves
as home to several car dealerships along the 11th Avenue corridor could find themselves without any room to grow. Some have found space
by utilizing the retail of new developments – an arrangement that has been amenable to some developers and dealerships; but the prime
real estate upon which many of them sit could service new residents and office workers in the fledgling area. Furthermore, increasing rents
in the area could further add to leasing challenges for some. It has been suggested that for auto dealerships to survive as a whole, spaces
will have to be reduced in part by taking advantage of newer technologies to display cars.
787 Eleventh Avenue (Clinton/Hell’s Kitchen) – The partnership of The Georgetown Company and Pershing Square Capital Management has
reportedly closed on the acquisition of the 8-story, 387,619-square-foot building just 2-months following the announcement of the sale by
owners the Ford Motor Co. Although the price was not disclosed, it was previously reported that sources anticipated that a sale could fetch
$230 million or more. Future plans by new ownership were not released, but it has been announced that Pershing Square which is currently
housed in 31,000 square feet at 888 Seventh Avenue will move into part of the 11th Avenue building, assumedly intending to lease the
remainder to other tenants. Since the building is overbuilt by current zoning rules, it cannot be demolished to make way for a new tower.
Acquired in 1997 for $73 million, the building was renovated and is currently used as a service center for Ford and Lincoln brand vehicles
that utilize interior ramps for car access to each floor. The building’s retail space currently houses Jaguar and Land Rover dealerships
on month-to-month leases, but both can be vacated simultaneously to the automaker moving out if new ownership opts to repurpose the
space for a big-box store. Ford was banking on the area’s uptick in residential development in the Far West Side that is prompting developers
to buy and refurbish office space that could cater to the growing workforce in the area; or potentially be repositioned for an academic facility.
823-825 Eleventh Avenue aka 601-605 West 56th Street (Clinton-Hell’s Kitchen) – Development company newcomer Sumaida + Khurana
is reportedly in contract to purchase the 6-story, 44,526-square-foot property from John Catsimatidis, owner of the Gristedes food market
chain. Situated on the corner of West 56th Street, the building is currently the corporate headquarters for the Gristedes chain with a Lexus
car dealership occupying the lower floors; and is zoned to allow for a new hotel or condominium development.
Developers of some of the area’s projects had reportedly considered the possibility of filling the retail space with a dealership showroom
as their strongest option. However as the area begins to evolve, some have now shifted from that direction and are broadening the search
to include more interesting retail uses that might be more beneficial for the neighborhood.
•
The Durst Organization’s 625 West 57th Street currently under construction will include 45,000 square feet of retail space;
•
TF Cornerstone’s planned project at 606 West 57th Street replaces a former Lexus showroom and will include 38,000 square feet of
retail space;
•
Moinian Group’s 605 West 42nd Street has recently topped off with 50,000 square feet of retail space;
•
John Jay College recently built a $600 million tower dubbed the New Building at 860 Eleventh Avenue between 58th and 59th Streets.
Sources:
https://foursquare.com/v/john-jay-college--new-building/4e94b7510cd60d94b53c0bf2
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Midtown
Development Sites: Pending Sales
131-141 East 47th Street (Midtown East) – New Empire Real Estate is in contract to acquire the
4-building portfolio that can accommodate 128,034 buildable square feet, and potential expansion to
138,578-square-feet with the inclusion of a public plaza for an undisclosed price. The Brooklyn-based
developer plans to construct a residential condominium that will house 138-units spread across 168,178
square feet. Permit filings and full details of the project that will span the 4-parcel assemblage located
between Lexington and 3rd Avenues have yet to be announced. The new building will replace an 11-story
parking garage and (3) 4-story mixed-use walk-up apartment buildings. The development site had been
introduced to the market last July at an asking price of $80 million ($624 per buildable-square-foot).
438-444 Eleventh Avenue (Hudson Yards) – Tishman Speyer is nearing the acquisition of the site that
can accommodate about 641,750 buildable square feet for over $300 million ($467 per buildable-squarefoot) from NY Waterway ferry founders the Imperatore family. It is speculated that the developer will
seek approvals to acquire additional air rights in the district that could expand a project density to at
least 1.7 million. The L-shaped site partially runs block-through between West 36th- and 37th Streets;
and last traded in 1987. Located directly across the street from the Javits Center at 655 West 34th
Street, the property offers the potential for a mixed-use development including residential or hotel.
131-141 East 47th Street - Rendering
The deal establishes the return of Tishman Speyer to the Far West Side neighborhood, having been
the original winner to be awarded the rights to develop the West Side rail yards, ultimately backing-out during the recession. Last year the
company acquired another large assemblage in 2-transactions — 435 10th Avenue, 507 West 34th Street, and 510-28 West 35th Street from
the Rosenthal family and Sherwood Equities for a total of $638 million.
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Midtown (cont’d)
Development Sites: Recently Sold
426-432 East 58th Street (Sutton Place) – Bauhouse Group recently acquired the property located at 426 East
58th Street, that along with 100,000 square feet of air rights for an undisclosed price will complete a 4-property
assemblage to accommodate a roughly 210,000-square-foot residential condominium development. Earlier this
year, the developer paid $32 million for the other 3 rental properties — 428-432 East 58th Street. Potentially the
currently proposed linear height of 900-feet could increase with the purchase of additional air rights due to the
current R10 zoning having no height restrictions. An additional 58,000 square feet of inclusionary housing rights
have already been delivered that would further increase the project’s density; however it is currently unclear if
the bonus will be offered on- or off-site. There have also been some indications that Bauhouse may flip the site
to another developer.
While permit applications have yet to be submitted, if the project proceeds it will reportedly be the first new ultraluxury development in the quiet enclave since 1927 when the 14-story One Sutton Place South between East
56th and 57th Streets was constructed. Located near Midtown’s Plaza district, the site is well situated just across
the East River from the planned Cornell Tech campus on Roosevelt Island; and accessible via train or cable car.
620 West 52nd Street (Clinton-Hell’s Kitchen) – Contemporary artist Jeff Koons purchased the vacant 25-footwide, 2,176-square-foot garage for $5.5 million ($440 per buildable-square-foot) from private co-owners Brent
Schlossberg and Thomas O’Connell; reportedly paying $500,000 over the asking price. The property last traded in
2003 for an undisclosed price. Plans by new ownership were not announced, but the site can accommodate 12,500
buildable square feet of commercial space which includes 10,000 square-feet of unused development rights.
Projects on the Horizon
426-432 East 58th Street
Rendering
550 Madison Avenue (Plaza) – Rumors have surfaced that a luxury hotel may fill the commercial space beneath the 96 condominiums on
the upper floors at the former Sony building that the Chetrit Group is currently redeveloping into a mixed-use property. Although unverified,
intentions have yet to be announced for the 213,852 square feet of commercial space spread across floors 6-13 at the tower; and sources
report that there have been discussions with several hotel brands. There have been reports of interest from Germany’s Oetker Collection
and the possible debut of a version of the company’s The Bristol brand; Hong Kong-based Shangri-La; and eBay founder Pierre Omidyar’s
Ohana Real Estate, whose holdings include the Montage Beverly Hills.
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Midtown (cont’d)
Project Plans in Progress
One Vanderbilt, 317-325 and 327-331 Madison Avenue (Grand Central) – SL Green Realty’s planned
1.6 million-square-foot tower received the final “green light” in May. A vote by the city council on
Wednesday, May 27th unanimously approved the proposal to rezone the 5-block stretch of Vanderbilt
Avenue via the creating of a special permit to increase building density along the corridor.
Additional modifications to the rezoning proposal gave the city more control over just how much in
bonus air rights developers should receive; and will be based upon several factors including the scale
of public infrastructure improvements contributed by developers and the building location. As part of
the special permit requirements, improvements to public infrastructure must be completed prior to the
start of the development. Pricing for granted air rights has yet to be established.
Simultaneously, SL Green’s application received approvals for the planned 67-story tower that will rise
about 672 linear feet above current zoning allowances to reach a final height nearing 1,200-feet. In
exchange the REIT agreed to invest another $10 million for public infrastructure improvements on top of
the $210 million previously committed. The added improvements represented an additional concession
to reduce retail space along East 42nd Street for the creation of a 3-story transit hall in the building
allowing more light and better air flow; and to provide better access for Long Island Rail Road (LIRR)
commuters to the 4, 5, 6 subway lines at Grand Central Terminal upon future completion of the East
Side Access project.
One Vanderbilt will anchor the 5-block corridor with the new LIRR station terminating directly beneath it
One Vanderbilt - Rendering
upon the MTA’s East Side Access project completion. The new tower is reportedly expected to generate
roughly $50 million in annual tax revenue for the city, a figure that is significantly higher than the $7.9 million the property currently pays
according to sources. In addition it is projected to create 5,200 construction jobs, 190 permanent union jobs, and double the number of
workers employed on the block. The Vanderbilt corridor will boast underground connections of all 5-blocks to the Grand Central Terminal
complex.
The council’s vote was the final step of the approval process, have been preceded by a sign-foo from the City Planning Commission (CPC). The
passage of the Vanderbilt Corridor rezoning carries great significance as the first critical step towards rezoning the Great Midtown East area.
One Vanderbilt Project - Planned Transit Infrastructure Improvement Renderings
New Transit Connection - Grand Central
Lexington Station - Expanded Control Area
Transit Entry Improvement - 42nd Street
Transit Hall Connection to Grand Central
Grand Central Concourse - Public Circulation
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Midtown (cont’d)
Project Plans in Progress (cont’d)
Nordstrom Tower, 217-225 West 57th Street (Midtown West) – Foundations are being poured as Extell
Development’s mixed-use, cantilevering tower and flagship location for Seattle, WA-based Nordstrom
begins to rise above the ground. Making their New York City debut, the high-end department store will
spread across the bottom 7-floors of the 1.155 million-square-foot tower that will reach a linear height of
1,515 feet. The upper floors will house 184 condominiums that are expected to generate a sale volume
totaling $4.4 billion. The project is slated to be completed by the end of 2018.
Nordstrom had reportedly purchased “a fee below a plane” — essentially the land and associated
development rights (excluding additional air rights) for $102.5 million as a down payment in 2013 for the
future delivery of its Manhattan flagship, with the remainder of the payments to be made in installments
over time. The deal equates to about $586 per buildable-square-foot for the 175,000-square-foot retail
condominium; and while Extell Development retained the air rights “above a plane,” Nordstrom will have
control of the site should development go awry.
217-225 West 57th Street - Rendering
In order to complete assemblage of the T-shaped site, Extell Development purchased the 2-story,
4,000-square-foot Beethoven piano building at 223 West 58th Street for $25 million in 2013. The
acquisition of 6,000 square feet of air rights and cantilever rights for a 28-foot by 88-foot cantilever were
purchased from the Art Students League of New York at 211 West 57th Street for $31.8 million in 2014;
having previously purchased 136,096 square feet of air rights for $25 million in 2005. A new $300 million
acquisition mortgage was secured from Blackstone, paying off a previous HSBC loan of just under $250
million. Simultaneously Nordstrom became responsible for a token $1 million mortgage that was also
provided by a Blackstone entity.
1 Park Lane, 36 Central Park South (Midtown West) – The development group led by Witkoff Group and
Hong Kong-based Jynwel Capital are planning to redevelop the former Helmsley Park Lane Hotel into
a 350,000-square-foot residential condominium. While permits have yet to be filed, the estimated $1.7
billion project will house approximately 88 condominiums on the block-through site between 58th- and
59th Streets. The tower is expected to be completed in 2020 and will deliver several luxury amenities
including a private port-cochere1 for car passage. The property was acquired in November 2013 for
roughly $654.316 million from the Leona M. and Harry B. Helmsley Charitable Trust, with acquisition
financing in the amount of $533.4 million provided by Wells Fargo Bank and Criterion Real Estate Capital.
36 Central Park South - Rendering
214-226 East 44th Street aka 217-223 East 43rd Street (Midtown East) – BLDG Management filed plans in January to build a 41-story,
over 300,000-square-foot residential rental development. The block-through site of an existing 10-story, 176,176-square-foot parking garage
was acquired in 2013 for $32.175 million according to city records. A $251 million loan was recently secured from lenders Bank of China
and the NYS Housing Finance Agency. The new building that will reach a linear height of 449-feet will house 429-units — 87-units to be
designated for affordable housing; and while official renderings have yet to be released, 3-design proposals were submitted as the subject
of a design competition. Demolition permits of the existing structure were previously approved last July.
214-226 East 44th Street - Potential Renderings
1
Port-cochere: a passageway through a building or screen wall designed to let vehicles pass from the street to an interior courtyard.
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Midtown (cont’d)
432 Park Avenue (Midtown East) – Developer Macklowe Properties is planning on constructing a 6-story, 71,000-square-foot office
component that will be attached to the residential development currently under construction and being co-developed with Los Angeles,
CA-based real estate investment firm CIM. The new structure will face East 57th Street and will allow office tenants to access the highend amenities being constructed for the residential condominium component including a pool, gym, and private restaurant and lounge.
The project’s office component which is expected to have asking rents of $150-$175 per square foot; and the 58,500-square-foot retail
component that will have 127-feet of frontage along East 57th Street are solely owned by Macklowe Properties.
227-229 Lexington Avenue (Kips Bay) – The New York Lions Group filed plans in March for the construction of a 14-story, 31,000-squarefoot rental development comprised of 36-units and 2,500 square feet of ground floor retail. The 2-parcel assemblage was acquired earlier
this year for a total of $7 million ($226 per buildable-square-foot). The project is expected to be completed in 2016, having previously filed
demolition permits last year.
38-46 West 33rd Street (Penn Plaza/Garment) – The residential development being constructed by ABH Realty Group was somewhat
modified since plans were filed last September. The tower is now expected to reach a linear height of 405 feet and total 165,901 square
feet spread across 36-stories to house 198 residential units plus a 5,872 retail component. The new building will replace a former ICON
parking garage that the developer acquired in 2007 for $30 million. Another $14.85 million was invested for the acquisition of additional
development rights — $13.2 million from Rick’s Cabaret at 50 West 33rd Street; and $1.65 million from above the adjacent storefront, for
a total assemblage cost of $44.85 million ($270 per buildable square feet). Excavation for the project is already underway for a potential
completion by 2017.
12 East 37th Street (Murray Hill) – Turkey-based Nef is planning to construct a 65-unit residential development that is expected to reach a
linear height of 700 feet. While permit applications have yet to be filed, the design of the yet unnamed development has been paralleled
to a vertical West Village Street. Comprised of 5 levels of elaborate amenities that will offer a balanced lifestyle environment along with its
offering of more petite residences, the project reflects what has become the developer’s trademark.
Taking advantage of the city’s zoning regulations by minimizing the structure’s footprint, height restrictions that become virtually unlimited
will allow the tower to accommodate 33-foot high park pockets without reducing the number of residential units. To prevent the tower
from swaying in the wind, efficient support structure will be required. Structural systems will be moved to its exterior perimeter that will
be arranged in a thin diagrid1 with a concrete core. In addition, interior columns are eliminated allowing greater flexibility of unit layouts
while reportedly reducing the thickness of the elevator core by roughly 50%. A ground-breaking date has yet to be set, but construction
is expected to be completed in 2017.
227-229 Lexington Avenue - Rendering
38-46 West 33rd Street - Rendering
12 East 37th Street - Rendering
1
Diagrid (diagonal grid): is a design for constructing large buildings with steel that creates triangular structures with diagonal support beams.
Sources: http://www.bloomberg.com/news/articles/2015-03-25/a-new-york-skinny-skyscraper-will-have-built-in-parks?hootPostID=6c1e912bbe205f9e3329813ca1af2180
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Midtown (cont’d)
318-320 West 52nd Street (Clinton/Hell’s Kitchen) – Cadence Property Group is developing a
30-unit residential condominium project dubbed The Sorting House atop a 2-story existing
post office that will remain in operation. A $24.7 million construction loan was secured from
lender CapitalSource, the commercial lending arm of Pacific West Bank. Construction of the
new residential component is already underway and will rise 3-stories; and sale closings are
expected to begin next fall.
318-320 West 52nd Street - Rendering
546 West 44th Street / 535 West 43rd Street (Clinton/Hell’s Kitchen) – Permits were issued in October for DHA Capital’s planned
263,300-square-foot residential rental development. Situated on the through-block site, the building will be comprised of 280-units of
which 20% will be designated affordable housing. The project joins nearby 505 West 43rd Street, a 181,000-square-foot project being
developed by the Elad Group.
606 West 57th Street (Clinton/Hell’s Kitchen) – TF Cornerstone’s development received partial approvals by the Department of Buildings
in March. The building will rise opposite The Durst Organization’s tetrahedral 625 West 57th Street project. The planned 42-story,
992,938-square-foot development will house 1,028 residential units spread across 952,938 square feet and a 40,000-square-foot retail
component. In contrast to the angular look of the Durst building, 606 West 57th Street will feature squared lines composed of several
blocks stacked on top on one another. Demolition of the former Lexus and Acura dealership has been completed, and pending final
approvals the project should break ground soon.
525 West 52nd Street / 540 West 53rd Street (Clinton/Hell’s Kitchen) – The partnership led by Taconic Investment Partners will be
constructing a 2-building, 80/20 mixed-use development totaling 466,204 square feet having secured a $200 million construction-topermanent loan in June. The roughly 14- and 24-story buildings will be co-developed along with investment firm Ritterman Capital, nonprofit Clinton Housing Development Company, and Japan-based firm Mitsui Fudosan which recently acquired a majority stake in the $330
million project for an undisclosed figure. Slated for completion in 2017, the buildings will rise on the block through site between 10th- and
11th Avenues, delivering a total of 392-units — of which 80 will be designated affordable housing for tenant whose household income is
at/or below 60% of the city’s Area Median Income; and a 32,298-square-foot commercial component.
Financed under the New York State Housing Finance’s 80/20 Housing Program, the transaction represents the first private placement
execution with multiple bond purchasers. Wells Fargo was leading lender alongside co-lenders M&T Bank and JPMorgan Chase. The debt
reportedly includes an extension option with an earn-out feature allowing the partnership to resize the loan and return a portion of their
initial equity investment upon the project’s stabilization. The facility will reportedly “deliver substantial savings by eliminating remarketing
costs and illiquidity risk associated with a typical publicly offered bond transaction” that consisted of:
$10 million 2015 Series-A low-floating-rate tax-exempt bonds; $60 million of 2015 Series-B taxable bonds;
$55.5 million of 2016 Series-A low-floating-rate tax-exempt bonds; $74.5 million of 2016 Series-B low-floating-rate taxable bonds.
546 West 44th Street - Rendering
525 West 52 Street - Rendering
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Midtown (cont’d)
3 Hudson Boulevard aka 605 West 42nd Street (Hudson Yards) – Moinian Group’s planned 66-story, 1.8 million-square-foot tower is
reportedly nearing approvals to start construction the project. However construction is not anticipated to proceed without securing an
anchor tenant with a commitment for about 500,000 square feet. Some additional steps before groundbreaking have yet to be done
including air right purchases to complete the assemblage of the site. The tower will boast solar-power generation; 14-foot slab-to-slab floor
heights; base floors of 48,000 feet beneath column-free 33,000-square-foot upper floors. A plan to include residential condominiums on
floors 49-63 could potentially switch to full office should an anchor tenant have preference. Currently the developer is working with the
MTA on the project’s foundation since part of it will be shared with the new 7-subway line extension. Gross asking rents for office space
are currently expected to be $89 per square foot; and the projected delivery date remains late 2018 or early 2019.
3 Hudson Broulvard - Rendering
451 Tenth Avenue (Hudson Yards) – Spitzer Enterprises is planning to construct a roughly 414,708-square-foot mixed-use development on
the site of an existing parking lot, reportedly taking control of the site last year despite reports of Floral Park, LI-based MADDD Equities
entering into a 99-year lease for $62 million. The new tower will be comprised of a mix of office and retail space spread across 311,000
square feet; and a 103,708-square-foot residential component. The property sits next to Spitzer’s planned hotel project on the block-through
site at 511 West 35th Street that will include a retail component and possible residential component that could spread across 414,750
square feet, having submitted applications for the purchase of additional development rights from the Eastern Rail Yards last year.
513-525 West 36th Street / 518-520 West 37th Street (Hudson Yards) – Lake Success, LI-based developer Lalezarian Properties filed
applications in June for the construction of a 38-story, 330,000-square-foot residential building that will house 250-units — 20% to be
dedicated for affordable housing between 10th- and 11th Avenues. The 4-parcel assemblage was acquired through several transactions
over the last 3-years for a total of $46.65 million.
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Midtown South
Development Sites: New to Market
393 Eighth Avenue (Chelsea) – An undisclosed seller has introduced to the market the existing 4-story, 10,870-square-foot mixed-used
building with 42-feet of frontage. The site that can accommodate up to 26,640 buildable square feet of residential or community facility
development; or 17,640 square feet for commercial development at an asking price of $22.5 million ($845-$1,275 per buildable-square-foot).
Located at the edge of the emerging Hudson Yards district, the site offers possible assemblage opportunities from other surrounding underbuilt properties. In addition project density can potentially increase through the acquisition of air rights currently being offered for sale from
the future Moynihan Station, 421 Eighth Avenue (former James A. Farley Post Office).
33 West 14th Street (Flatiron) – The Workers United NY/NJ Regional Joint Board has introduced the 2-story, 4,943-square-foot building to
the market for a current asking price of $11.5 million ($740 per buildable-square-foot). The 2,582-square-foot parcel can accommodate 15,544
buildable square feet for a mixed-use residential and retail development. Located mid-block between 5th- and 6th Avenues, the property
offers 25-feet of frontage. The union plans to take a short leaseback upon sale to provide time to seek a new location.
139-143 East Houston Street (Lower East Side) – The site that can accommodate 44,500 buildable square feet, or up to 56,000 square
feet of residential development with inclusionary housing bonuses is reportedly being marketed at an asking price of over $35 million ($625$787 per buildable-square-foot). The existing 24,800-square-foot building is currently home to long-time tenant Sunshine Cinema whose
current lease runs through 2018 at an annual rent of about $200,000. Located one block from the area’s Whole Foods market, the site offers
62-feet of frontage. Development activity in the area has been on the rise, vicinity projects include a 37-unit mixed-use development at 50
Clinton Street; a 38-unit condominium at 100 Norfolk Street; an 11-unit condominium 204 Forsyth Street; and a planned 83-unit mixed-use
development at 196 Orchard Street.
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Midtown South (cont’d)
75 Kenmare Street (NoLita) – DHA Capital is reportedly in contract to acquire the existing 3-story, 36,159-square-foot garage for over $50
million ($735 per buildable-square-foot), planning to construct a 68,000-square-foot mixed-used development with retail, residential and
parking. Full details of the project have yet to be announced.
297- and 299 Third Avenue (Gramercy Park) – SMA Equities purchased the adjacent properties that can accommodate 46,000 buildable
square feet for $23 million ($500 per buildable-square-foot) from separate owners — 297 Third Avenue was acquired for $9 million from Fan
& Associates; and 299 Third Avenue traded for $14 million from Alphas Holding Corp. Development plans have yet to be announced. The
adjacent 1,603-square-foot retail condo at 295 Third Avenue was purchased simultaneously for $4.8 million from J&T Animals, Inc.
112 East 16th Street (Union Square) – Tishman Realty acquired the 9-story, 50,150-square-foot parking garage for $35 million ($698 per
square foot) from MetLife Insurance Company. Future use options for the property that last traded in 2007 for $20.8 million ($415 per
square foot) are currently being reviewed.
117-119 West 21st Street (Chelsea) – The Amirian Group acquired the vacant 4-story property that can accommodate about 34,000 buildable
square feet offering 44 feet of frontage for $28.5 million ($838 per buildable-square-foot) from Alfa Development. New ownership reportedly
plans to gut renovate the former Hershey Factory while retaining the brick façade, and reposition it into residential condominiums. Little
Rock, Arkansas-based Bank of the Ozarks provided a $30.5 million senior mortgage to close the deal and help fund redevelopment. An
additional $6 million in mezzanine debt was also secured from the newly launched Tall Pines Capital fund. The property last traded in 2013
for $12 million, Alfa abandoning plans to demolish the building to make way for a 12-story residential development.
196 Orchard Street (Lower East Side) – The partnership of Magnum Real Estate and Midtown-based Real Estate Equities reportedly closed
on the 4-property assemblage plus air rights for $75 million ($662 per buildable-square-foot); securing a $97 million loan from SL Green
that will allow construction to begin. Plans were previously filed in November for a 10-story, 113,246-square-foot mixed-use development
comprised of 83 residential units and 13,500 square feet of ground level retail.
In addition to 196 Orchard Street, the assemblage included 198-200 Orchard Street and 187-197 East Houston Street (aka 202 Orchard
Street) which were purchased for $42.8 million; 194 Orchard Street purchased for $8.8 million; additional air rights acquired from Katz’s
Delicatessen for an undisclosed price. Another $17.375 million was paid for what appears to be, although unverified, a subdivision of the
tax lot under the address 199-205 East Houston Street which is also home to the 150-year plus Katz eatery. It has not yet been decided
whether the project will be rental or condominium.
249 Tenth Avenue (Chelsea/High Line) – Park-it Management, owner of the existing 5-story garage, submitted applications to the City
Planning Commission requesting a modification to the current zoning language of the special West Chelsea zoning district. Ownership has
proposed the redevelopment of the garage, adding 4 additional stories, into a 38-unit, 37,125-square-foot residential building with ground
floor retail. Park-it is hoping to transfer 8,668 square feet of unused development rights, equal to the property’s residential floor area ratio
(FAR) of 6.2 from another parcel owned that runs under the High Line between 22nd and 23rd Streets. Due to current zoning language, a
transfer would only be allowable in an amount equal to the property’s commercial FAR of 6.0
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30 Thompson Street (SoHo) – Co-developers Weis Group, Mavrix Group, and TriBeCa-based builder Walker Ridge are planning to construct
a 13,800-square-foot boutique residential condominium that will house 8-10 units pending the availability to secure additional air rights. The
new building will replace an existing single-story garage that was acquired in May for $13.1 million ($949 per buildable-square-foot) from
Empire Office CEO Peter Gaslow. Demolition permits have yet to be filed, but developers are hoping to deliver the project before the end
of 2017.
38 Greene Street (SoHo) – Zar Property NY filed plans in April to construct a 2-story, 12,000-square-foot duplex penthouse atop the
existing 5-story, 37,500-square-foot building that the company has reportedly owned since 2008. Approvals by the Landmarks Preservation
Commission (LPC) were already granted earlier this year for the condo addition that will boast 3-private terraces totaling 4,000 square feet.
Current asking rents at the building average $75 per square foot, but it is anticipated that the penthouse asking rent will run in the tripledigit range.
555 Broome Street formerly 100 Varick Street (Hudson Square) – The development team of Bizzi & Partners Development, Halpern Real
Estate Ventures, and Michael Shvo filed plans in June for the a planned 25-story, 259,350-square-foot residential condominium development
that will be constructed along with Itzhaki Acquisitions and Aronov Development. The new tower will house 119-units spread across 242,350
square feet, and 17,134 square feet of retail space on the ground and 2nd floors; however due to neighborhood projects being subject to
arbitrary height limitations, will only rise to a linear height of 290-feet. The site was acquired for $130 million ($501 per buildable-square-foot)
and included several town houses, development parcels, and air rights. Demolition permits were previously filed last June.
152 Elizabeth Street (NoLita) – Manhattan-based newcomers Sumaida + Khurana will be making their development debut with a planned
7-story, 27,090-square-foot residential condominium project. Located on the southeast corner of Kenmare Street, the new structure will
replace an existing 4-story garage that the development team acquired for $21 million ($775 per buildable-square-foot) last year. Building
permits were granted in 2014 and the project is expected to be delivered sometime next year.
38 Greene Street - Rendering
30 Thompson Street - Rendering
555 Broome Street - Rendering
152 Elizabeth Street - Rendering
111 East 24th Street (Flatiron) – Great Neck, Long Island-based McSam Hotel Group filed plans in March for the construction of a 13-story,
38,400-square-foot hotel on the site of an existing parking lot currently leased to Champion Parking. The 120-key hotel is expected to reach
a linear height of 140-feet. The mid-block property is located near Madison Square Park, and a 99-year triple-net land lease was acquired last
year at an annual rent of $900,000 to make way for the project.
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209-225 East 19th Street / 224-228 East 20th Street (Gramercy Park) – Renderings were released for the redevelopment of the former
Cabrini Medical Center which shuttered in 2008. The multi-building project dubbed Gramercy Square spans a block-through lot, and
is being co-developed by the Chetrit Group and Clipper Equity. Several existing structures will be repurposed for residential use with
the addition of a smaller building to be newly constructed. Acquired in 2013 for $150 million, the project is tentatively slated for a 2016
completion having already secured most of the Department of Buildings (DOB) permits. The hospital conversion follows in the footsteps of
a similar redevelopment by Rudin Management of the former St. Vincent’s Hospital located nearby that has been dubbed Greenwich Lane.
–
209-225 East 19th Street will have 140-units spread across 16-stories with significant exterior changes that will replace the current small
windows and overbearing façade with large glass panes;
–
228 East 20th Street / 227 East 19th Street will have 54-units each;
–
224 East 20th Street – the newly constructed building will have 8-full floor apartments.
209-225 East 19th Street - Rendering
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126 Madison Avenue (NoMad) – Co-developers JD Carlisle and Shanghai-based Fosun Group are planning
the construction of a 47-story, 350,000-square-foot residential condominium that is expected to reach a linear
height of 730-feet and house 180-units. The assemblage that is located between East 30th- and 31st Street
was previously acquired by JD Carlisle for reportedly over $100 million in March; and construction is expected
to begin later this year with an anticipated 2018 delivery. This will be Fosun’s first foray into residential
development in the city, having acquired an undisclosed stake. In addition, the partnership will take advantage
of Fosun’s ability to source building materials from China as well as attract Chinese buyers.
281 Fifth Avenue (NoMad) – Construction firm Lend Lease will be joining New Jersey-based developer Victor
Homes as co-developer for the planned 705-foot residential condominium tower. Originally contracted to
handle the project’s construction, Lend Lease will now reportedly have equal control of its development
having acquired a stake in the project although details of the transaction were not released. The development
team is currently seeking a construction loan for the projected $400 million project, in addition to previously
initiated efforts by Victor Homes to raise intended secondary loan financing through the federal government’s
EB-5 Foreign Investor program.
126 Madison Avenue - Rendering
Permit applications were filed in May to construct the 52-story, 216,987-square-foot development comprised of 141-units spread across
209,087 square feet and a 7,900-square-foot retail component on the first 2-floors. Victor Homes had purchased the assemblage of an
existing 3-story retail building plus a reportedly substantial portion of air rights from Kushner Properties and Ironstate Development last year
for $99 million, upon the former companies abandoning plans to construct a 40-story, 132,000-square-foot development.
143-145 Madison Avenue (NoMad) – Midtown South-based Kahen Properties filed plans in May for the construction of a 21-story,
56,618-square-foot mixed-use development comprised of 71 residential units and 2,477 square feet of commercial spread across the
ground and cellar levels. Demolition permits have yet to be filed for the existing 6-story, 22,667-square-foot office building which straddles
the 2-parcel site that was acquired in 2013 for $12.2 million ($215 per buildable-square-foot).
250 Fifth Avenue (NoMad) – Pink Stone Capital, sister company to Empire Management filed alteration
applications for the conversion of the existing 38,185-square-foot building into a hotel project planning to
add 18-additional stories to the 5-story building for a total linear height of 219 feet. The proposed 33-key,
106,278-square-foot hotel would also include a restaurant, library, and shared outdoor terrace. The corner,
L-shaped property at West 28th Street is currently home to a bank on the ground floor with 4-stories of
office space above; and is located within the Madison Square North Historic District requiring the Landmarks
Preservation Commission’s approval for any exterior changes. The 1907 building originally constructed for the
Second National Bank last traded in June 2013 for $15 million ($141 per buildable-square-foot).
11-33 East 31st Street (NoMad) – Simon Baron Development (SBD) along with equity partners Geolo Capital
and Cube Capital Ltd. are constructing the 30-story, 108,120-square-foot boutique hotel that is near topping
out. Dubbed the Tommie Hotel, the 250-key project that was slated to break ground in 2013 ultimately stalled
due to a lack of construction financing. The 5-parcel site assemblage originally acquired in 2007 by SBD,
subsequently traded hands several times over the next few years. Commune, a joint partnership between
Thompson Hotels and Joie De Vivre Hotels will manage the hotel that is expected to be completed in 2016.
Sources:
http://www.simonbaron.com/11-e-31st-hotel
http://www.wsj.com/articles/SB10001424127887324125504578511633891011400
11-33 East 31st Street - Rendering
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92 Eighth Avenue - Rendering
239-243 Tenth Avenue - Rendering
57 Orchard Street - Rendering
92 Eighth Avenue (Chelsea) – Developer Maxine Gilbert under the entity GO 8th Ave. LLC filed permit applications for the construction of
a 6-story, 9,617-square-foot mixed-use development comprised of 9 rental units spread across 7,660 square feet and a 1,957-square-foot
commercial component on ground level. The new building will replace an existing 5,840-square-foot mixed-use building that was severely
damaged by Hurricane Sandy in 2012.
221 West 17th Street (Chelsea) – Delshah Capital plans to construct a 10-story, 40,000-square-foot residential condominium development
that will replace an existing 6-story, 33,188-square-foot office building. Located between 7th- and 8th Avenues, the new building that has
been dubbed the Dorian will house 14-units and include ground level retail space; and is expected to be delivered by the end of next year.
The site was purchased in 2014 for $26.4 million ($660 per buildable-square-foot).
239-243 Tenth Avenue (Chelsea) – Co-developers Michael Shvo and Victor Homes are planning to construct a 12-story, 41,489-squarefoot project located adjacent to the elevated High Line Park at West 24th Street. The building dubbed The Getty will house 8 residential
condominiums plus a 3,392-square-foot art gallery. Permit applications had been filed in September for the project that is expected to be
completed in 2016. The demolition of an existing gas station was previously completed early in May. According to city records, the site was
acquired in July 2013 for $23.5 million ($566 per buildable-square-foot).
61 Ninth Avenue (Chelsea-MePa) – Co-developers Vornado Realty Trust and Aurora Capital Associates filed permit applications for the
construction of a 10-story office/retail development that will spread across approximately 123,000 square feet. The project will replace the
former Prince Lumber yard and be comprised of 7-floors of office space atop 3-floors of retail space. According to an announcement last
August, the development team was in contract to acquire the leasehold for the site. The recent opening of the new Whitney Museum at 99
Gansevoort Street is anticipated to further heighten the attraction to the neighborhood as a 24-hour destination.
57 Orchard Street (Lower East Side) – Great Neck, LI-based Continental Worsted released renderings of the 15-story residential condominium
project. While full details of the development have not been announced, the assemblage will also include 59-63 Orchard Street and 319
Grand Street creating a combined total of 320-feet of frontage. The properties were acquired for a total of $27 million ($1,125 per buildablesquare-foot) from long-time owner Morris Goldman Real Estate. The 3-parcels fall under different zoning regulations, 57 Orchard Street
allowing for approximately 73,000 buildable square feet while the latter two properties would require a special permit should residential
conversion be intended. The copper-clad tower that will be constructed at 57 Orchard Street will rise above the adjacent historic properties
that complete the assemblage, the developer reportedly intending to restore them under a larger redevelopment plan.
250 South Street formerly 227 Cherry Street (Lower East Side) – New renderings were released for Extell Development’s 939,850-squarefoot project that will replace a former Pathmark supermarket. Expected to reach a linear height of 700-feet, the development will be
comprised of 646 residential units spread across 914,334 square feet to be divided between a 56-story tower; and a shorter 13-story
component designated for affordable housing. The tower will also include 25,516 square feet of ground level retail space. Extell had
purchased the site in 2013 for $175 million ($186 per buildable-square-foot).
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Developing Trend
Co-working space provider WeWork is reportedly planning to bring a block of small residential units and community facilities to the top of
Rudin Management-owned 110 Wall Street (FiDi). The project that is intended to ease the challenges of TAMI tenants seeking affordable
housing in the city will bring together the company’s WeLive concept that is currently being pursued in Crystal City, VA. The Washington, D.C.
area project comprised of 216 micro-units with shared kitchen facilities may now have office space brought into the mix. Sources suggest
that Rudin’s $7.7 million purchase of additional air rights from a neighboring hotel in July could be intended for WeWork’s development.
Signs of a new trend have begun to appear on the horizon as crowdfund platform Prodigy Network
follows in the footsteps of WeWork, by shifting previous redevelopment plans for the 15-story
building at 17 John Street (FiDi). The extended-stay hotel hybrid branded “cotel” is expected to
include a combination of shared workspace and 194-units of a mix of short-term rental apartments
and long-term hotel rooms plus some office and retail space. Redevelopment will result in the
addition of 8-stories and an expanded footprint of approximately 149,600 square feet. The property
was acquired in 2014 for $85.3 million. In addition to the Financial district property, Prodigy may
expand the concept to another 2 undisclosed buildings in the NoMad neighborhood that they recently
signed purchase options to acquire. The company is currently seeking a hotel provider to manage
all three projects; and plans to raise some of the project funding through a crowdfunding campaign.
17 John Street - Rendering
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Downtown (cont’d)
Development Sites - New to Market
28-42 Trinity Place / 67 Greenwich Street (FiDi) – Trinity Place Holdings Inc. is considering a
sale in whole or in part with a joint venture partner of the assemblage as they weigh options to
best maximize value for shareholders. The most recent renderings released reveal a project size
exceeding 1 million square feet which is significantly larger than the as-of-right 300,000-squarefoot size reported in December, sources speculating that over 600,000 square feet of unused air
rights from nearby Trinity Church have been added to the assemblage that reportedly extends
to Greenwich Street with its northern edge bound by Rector Street.
The rendering that is reportedly only in studying stage, reveals the potential of an 80-story structure
reaching a linear height of at least 1,015 feet. The mixed-use project would potentially comprise
3-stories of space for the city’s Department of Education atop a 2-story retail component, followed
by a hotel spread across floors 7-38, with the remaining 42-stories dedicated to residential use.
The south end of the site sits adjacent to the Robert and Anne Dickey House at 28-30 Trinity
Place (aka 67 Greenwich Street) on the corner of Edgar Street, and due to its Landmark status
must remain. As a result, the design of the Trinity Place project slopes downward, with its southern
envelope diminishing to a height that will meet the Dickey House rooftop.
Various press releases note that 81 Greenwich Street and 50 Trinity Place may also be included 28-42 Trinity Place - Latest Potential Rendering
in the project; the latter, a vacant lot that has traded twice in the last 10-years with plans to construct a hotel remaining in limbo. Last trading
for $15 million in 2012, Los Angeles, CA-based FIT Investment Corporation acquired the parcel at 50 Trinity from McSam Hotel Group.
Permit applications were filed in November for a 29-story, 72,089-square-foot hotel at the corner of Rector Street; McSam Group apparently
abandoning their own plans for a hotel project upon acquiring the site in 2005 for $13.5 million.
Development activity in the immediate area located just south of the World Trade Center has increased significantly, vicinity projects include
125 Greenwich Street where co-developers Michael Shvo and Bizzi & Partners are planning to build a 128-unit, 453,628-square-foot
residential condominium development that could reach a linear height just shy of One World Trade Center’s 1,776 feet; and 68 and 74 Trinity
Place, existing office buildings that Trinity Real Estate is planning to demolish to make way for a 46-story, 300,000-square-foot residential
and office tower.
Trinity Place Holdings serves as the successor holding company for the real estate assets of the former clothing discounter Syms Corp.
and its subsidiaries including Filene’s Basement, LLC, allowing the bankrupt retailer to emerge from Chapter 11 in 2012. A $40 million loan
facility was secured, collateralized by both 42 Trinity Place and 67 Greenwich Street, from lenders Sterling National Bank and Israel Discount
Bank of New York. Proceeds of the loan will pay off all residual claims, with the remainder intended to further pre-development work on the
lower Manhattan sites.
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Downtown (cont’d)
New to Market (cont’d)
80 South Street (FiDi) – Dallas, TX-based Howard Hughes Corporation introduced the development site to the market as a sale or possible
joint venture deal for the South Street Seaport site. Acquired in 2014 from Queens-based Cord Meyer Development for $100 million, the
8,128-square-foot parcel located at the corner of Fletcher Street has reportedly seen several proposed redevelopment designs over the last
10-years. An initial design for an 835-foot tower by Santiago Calatrava dubbed “Sky Cubes” was abandoned at the height of the recession
in 2008. More recently, a design for a 1,018-foot, 300,000-square-foot mixed-used tower by Morali Architects received City Planning
Certification in 2013. The announcement of the sale represents a turn-around in the developer’s recent activity in the neighborhood which
has been predominantly acquisitions.
56 North Moore Street (TriBeCa) – Private TriBeCa-based investors the Calicchio family has introduced the 5-story, 41,000-square-foot
garage to the market hoping to fetch a price of $88 million ($2,000 per buildable-square-foot). The property that can accommodate 44,000
buildable square feet will be delivered vacant. Currently being marketed as a potential luxury residential conversion, the property last traded
in 1983 and boasts 100-feet of frontage.
Source:
http://www.businesswire.com/news/home/20141231005291/en/Trinity-Place-Holdings-Secures-Loan#.VSbtffnF98E
http://www.businesswire.com/news/home/20120917006252/en/Syms-Corp.-Emerges-Chapter-11-Trinity-Place#.VSfxRWd0x-Y
http://www.trinityplaceholdings.com/about/
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Downtown (cont’d)
57 Murray Street (TriBeCa) – Cape Advisors has purchased the development site that spans an entire block-front on West Broadway
between Warren and Murray Streets for $50 million ($1,086 per buildable-square-foot).The property that consists of 6-existing residential
structures was introduced to the market in October. While 1 residential building on the northern edge of the property has rent-stabilized
tenants and would have to remain, the other 5 market-rate residential rental buildings will be cleared to redevelop into an approximately
46,000-square-foot condominium project.
92-94 Fulton Street (FiDi) – The Lightstone Group has acquired the 2-parcel development site for $23.25 million from Fisher Brothers.
Development plans were not announced for the assemblage comprised of a vacant lot and a 6-story mixed-use building; but the property
is located around the corner from the company’s mixed-use residential-hotel project at 128-134 William Street for which plans were filed in
March. Fisher Brothers had purchased the vacant lot at 92 Fulton Street last year for $10 million, abandoning plans to construct a 16-story
residential building despite filing plan applications for the project.
Air Rights Acquistion
163 Front Street aka 34-40 Fletcher Street (FiDi) – Howard Hughes Corp. has struck another deal in the South Street Seaport neighborhood
where the developer has been very active. The existing 10-story, 58,500-square-foot commercial property was acquired for $24 million in
February from American International Realty, offering 98,280 buildable square feet.
In addition, the developer acquired close to 150,000 square feet of air rights for $64.6 million ($431 per square foot) from Newark, NJbased parking facility owner Edison in March. The additional development rights will be transferred from a parking lot at 167 Front Street
which is situated within the designated historic area of the South Street Seaport, while Howard Hughes’ site lies just outside. Although
details of a project have not been announced, there are reported indications that it would span both companies’ properties for a total of up
to 518,760 square feet of development rights.
The Edison air rights acquisition comes about one month after news of Howard Hughes acquiring approximately 333,329 square feet of air
rights for $30.8 million (92 per square foot) from above the South Street Seaport Museum at 207 Front Street and a handful of properties on
the block north of Front Street. The acquisition was arranged through the South Street Seaport Sub-district’s Transfer Development Rights
Bank (TDR Bank).
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Downtown (cont’d)
2 World Trade Center aka 200 Greenwich Street (World Trade Center) – New renderings of the
re-design of the 4th tower at the World Trade Center site were released in mid-June as ground
breaking comes closer to a reality with a potential anchor tenant signing. Rupert Murdoch’s
News Corp and 21st Century Fox are reportedly in negotiations for separate deals that will total
about 1.3 million combined square feet at the tower. The tower’s redesign was in part prompted
by the media companies’ need for studio space to be housed in the lower portion of the 2.8
million-square-foot building, a requirement that the original design intended to attract financial
firms could not accommodate. The core of the media companies’ space will be housed in the
lower portion of the building, with a Fox screening room built on the top floor.
Due to the complexities of redeveloping the multi-building site, the foundation for 2 World Trade
Center had previously been constructed along with the underground transit hub and retail mall.
The building will be located at the northeast corner of the site next to the National September
11 Memorial & Museum; and include about 50,000 square feet of retail space on the ground and
the first 3-levels of the building.
The tower will rise to a linear height of 1,340 feet, and its divided step-structure will parallel
the stacking of blocks that will decrease in size as the tower’s height increases. The initial block
will start at 56,000 square feet in order to utilize the maximum area at the site’s base. A series
of outdoor gardens will fill the resulting setbacks, intended to create a fluid continuation of the
2 World Trade Center - Rendering
greenery around St. Paul’s Chapel that lies at the foot of the tower. The upper 5-blocks of the
7-block stack that form the building will be off-set on the building’s north side creating a “6th façade” where the Fox news tickers will
stream. The tower will present a disciplined silhouette when viewed from West Street and the Memorial Plaza (west and south); while
offering a more abstract design on the building’s east and north sides facing Church- and Vesey Streets.
While a green light to move the project forward looks hopeful, there are several factors
involved that could further stall a start such as project costs; and the requirement of securing
private financing, which would only come if a formal lease signing by the potential anchor
tenants is secured. The tentative transaction is the 2nd opportunity to secure an anchor
for 2 World Trade Center, having reportedly reached a similar stage of negotiations back
in 2013 with Citigroup that fell through, the bank ultimately deciding to renew at 388 and
399 Greenwich Street (TriBeCa). If the deal moves forward, News Corp. and 21st Century
Fox are intending to relocate in 2020 upon lease expiration of their current locations at
Midtown’s 1185 and 1211 Sixth Avenue.
Building View from WTC Memorial Plaza
Cafe - Rendering
Source:
Fox News Studio - Rendering
http://www.wired.com/2015/06/bjarke-ingels-design-two-world-trade-center/
Lobby - Rendering
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Projects on the Horizon (cont’d)
28 Liberty Street (FiDi) – Shanghai-based Fosun International Ltd. has begun efforts to
revitalize the former One Chase Manhattan Plaza, planning to upgrade elevators and heating
and cooling systems within the over 2.2 million-square-foot tower. Building upgrades are
currently expected to range in costs of $100 million and $200 million, hoping to elevate the
building to the same competitive level as the newly constructed One World Trade Center.
Fosun is reportedly intending to price space close to rents at World Trade Center as the
company prepares to fill the over 1 million square feet of space vacated by former owner
JPMorgan Chase & Co. However some sources anticipate it could create challenges
securing tenants who might shift their search to the newer construction as a result.
28 Liberty Street - Rendering
Other renovations to be proposed are still being determined, but currently include improving the tower’s outdoor plaza and the introduction
of programmed activities such as film festivals or food markets; creating a club or lounge on the top floor that could also serve as event
space for businesses. An expansion of retail space to about 200,000 square feet is also intended to potentially spread across 3 below-grade
levels by converting over 150,000 square feet of space in the building, plus the addition of some type of café service off the lobby. As part
of the retail upgrade, initial designs revealed the installation of a new glass luminous ceiling in the underside of the tower. The existing black
granite that runs the entire perimeter at the base of the building would be replace with new glass storefronts interspersed with some of
the original granite in order to make the 3-points of entry more welcoming to foot-traffic.
Members of Community Board 1’s Landmarks Committee expressed concerns of the granite’s removal despite general accord that the
proposed renovations were an improvement of the existing look of the plinth1, noting that the most important design element of the
building’s landmark status was the black granite. A resolution was sent by the committee to the Landmark Preservation Commission (LPC),
approving the overall plan in March with the request for some modifications that in part include the plinth.
460 Washington Street (TriBeCa) – Co-developers the Related Companies and Ponte Equities are constructing the 10-story, 140,000-squarefoot residential rental development located just south of Canal Street. Already beginning to rise, the building will house 107-units of which
20% have been designated for affordable housing. A mix of modern and traditional, the project’s design will feature a “glass and metal
façade” on the side facing the Hudson River, that will contrast an “older brick, big-windowed” design intended to parallel a manufacturing
building style. In addition, structural setbacks will create a look that is similar to the predominantly low-rise character neighborhood. Permits
were reportedly filed in 2012 for the project that is expected to deliver early 2016.
128-134 William Street (Insurance/FiDi) – The Lightstone Group filed plans in March for the construction
of a 50-story, roughly 240,000-square-foot mixed-use development. The project located between John and
Fulton Streets will be comprised of 188 residential units on the upper floors, with over 101,000 square
feet of commercial space that will include a hotel on floors 6-17 and retail space. The distressed 12-story,
142,000-square foot structure was acquired last year for $60 million ($250 per buildable-square-foot),
having gone into receivership in 2012.
75-83 Nassau Street (Insurance/FiDi) – Lexin Capital’s roughly 40-story, 229,000-square-foot mixed-use
development will be comprised of 39,203 square feet of commercial space — primarily retail use, spread
across the first 4-floors of the building; and 197 residential units that are expected to be a mix of rental
and condominium units in the remaining 189,797 square feet. The project that is expected to reach a linear
height of 498 feet will spread across a 3 tax lot assemblage — 75-77, 79-81, and 83 Nassau Street plus
unused air rights from 85 Nassau Street; and was purchased for a total of $63.4 million ($277 per buildablesquare-foot) last year. The area around the Fulton Transit Center has seen an uptick in development activity
as significant infrastructure improvements near completion.
75 Nassau Street - Rendering
1
Plinth: is the base or platform upon which a column, pedestal, statue, monument or structure rests.
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Uptown and Upper Manhattan
Development Sites - New to Market
177-179 East 73rd Street (Upper East Side) – The 5-story, 17,232-square-foot garage has been introduced to
the market at an asking price of $50 million ($2,907 per square foot). Owned for several decades by 3-families,
ownership has decided to take advantage of the escalating prices for Manhattan townhouses. The 40-foot wide,
Beaux-Arts building that offers 17-foot ceiling heights is being marketing as a potential single family mansion,
with estimated conversion costs expected to range between $9-$20 million.
143-161 East 60th Street (Upper East Side) – Kuafu Properties is reportedly in contract to purchase the 6-parcel
portfolio of primarily mixed-use, low rise buildings for over $300 million. The pending sale comes just weeks
after World Wide Group introduced the properties to the market that some sources valued at around $300 million
177-179 East 73rd Street
Rendering
($1,071 per buildable-square-foot). Located across the street from high-end department store Bloomingdale’s,
existing buildings could be demolished to make way for a roughly 280,000-square-foot development of a potential linear height up to 1,000feet. Adding to the portfolio’s value is the 200-feet of frontage along East 60th Street. Acquired through several transactions spanning years
2005-2014, the properties last traded for a total of roughly $66.874 million.
Year
Address
2005
145-149 E 60th Street
Acquisition Price
$1,600,000
2006
143 E 60th Street
2012
151 E 60th Street
2012
Existing Sq. Ft.
Stories
Entity
15,004
5
Gracie Development LLC
$5,800,000
5,820
5
MVG 60th Street LLC
$8,345,025
6,600
5
Gracie 151 Development LLC
153 E 60th Street
$5,200,000
4,000
2
Westside 153 LLC
2014
161 E 60th Street
$37,000,000
78,716
11
KA 155 LLC
2014
161 E 60th Street
$8,928,717
Dev. Rights
Total
Westside 153 LLC
$66,873,742.00
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Uptown and Upper Manhattan (cont’d)
Development Sites: Ground Lease
267-269 West 87th Street / 271-273 West 87th Street (Upper West Side) – The joint venture of Simon Baron Development and Quadrum
Global signed a 99-year ground lease at a reported commencing rent in the high-$20s based upon the site accommodating 100,000 buildable
square feet. The development team plans to demolish the existing structures serving as a parking garage, one which is 7-stories and 35,245
square feet; and the 2nd standing 3-stories at 14,355 square feet, into an 18-story, 100,000-square-foot high-end residential development. The
long-term deal eliminates the option for a condominium development, but allows ownership Riverview Operating Co. to retain both parcels
while creating an ongoing income stream.
302 East 96th Street (Upper East Side) – The partnership of Wonder Works Construction, Fimida Enterprises, and Mink Development acquired
the assemblage in March for about $24.03 million ($320 per buildable-square-foot) from real estate firm Walter & Samuels. The acquisition
represented an investment of $22 million for the 3-story, 14,405-square-foot garage; and roughly $2.03 million for additional air rights according
to city records. The development team plans to demolish the existing structure to make way for a 75,000-square-foot residential development
that will deliver 48 “affordable-luxury” units – a newer entrant in the housing market that is becoming more prevalent in the area. The
property last traded in February 2014 for $10 million.
40 East End Avenue (Yorkville) – The Lightstone Group has acquired the existing 6-story, 34,792-square-foot rental building for $34 million
from an undisclosed seller. Although applications have yet to be filed and full details of the project were not released, the developer is
reportedly intending to demolish the structure to make way for a new condominium development.
Source:
http://www.wsj.com/articles/manhattan-parking-garage-with-good-bones-is-listing-for-50-million-1431638352
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Upper West Side’s Riverside Center Project
Riverside Center located within the Lincoln Square area on the Upper West Side is slated to add 2,500 residential units that will include
affordable housing, a 250-key hotel, 250,000 square feet of commercial space, a new school and cinema, an auto showroom, and a 2.76acre public park. The Carlyle Group, as the majority stakeholder, and Extell Development reportedly acquired the undeveloped southernmost
portion of Donald Trump’s Riverside South development from his Hong Kong-based partners for $1.76 million in 2005. Construction of the
5-buildings was being offered through a bid process. The former above-ground parking lot spans the blocks from 59th to 61st Streets
between Riverside Boulevard/12th Avenue and West End Avenue/11th Avenue.
The goals and benefits of the project that received City Council approvals late in 2010:
•
Create a well-planned and attractive neighborhood center distinguished by its world-class architecture and landscaping;
•
Build up to 150,000 GSF for a K-8 public school;
•
Provide new open space to mediate between the Manhattan street grid, which will extend 60th Street and lengthen Freedom Place,
and the waterfront through the creation of new pedestrian paths;
•
Connect the upland residential neighborhood to Riverside Park South and the Hudson River waterfront;
•
Extend and enhance the West End Avenue streetscape;
•
Provide retail and restaurant space to serve the shopping and other needs of the community.
The planned developments on the 8.2 acre site include:
10 Lincoln Square aka 10 Riverside Boulevard (Parcel 3) – Co-developers Carlyle Group and Extell Development filed permit applications to
construct a 36-story, 413,000-square-foot development comprised of 288 residential units with 1,400 square feet of below-grade commercial
space. Situated at the northeast corner of West 59th Street at 12th Avenue, the vacant parcel was acquired for $50.3 million ($122 per
buildable-square-foot) in 2005.
5 Riverside Center aka 21 West End Avenue (Parcel 2) – Located on the northeast corner of the site at West 61st Street, the 43-story
development was the first to break ground. The building being co-developed by Dermot Company and the AFL-CIO Building Investment
Trust will include 616 rental units and a 4-story public school upon expected completion this year.
10 Freedom Place aka 1 West End Avenue (Parcel 5) – Located on the southeast corner of the site at West 59th Street, the planned
residential development will be constructed by a partnership of Silverstein Properties and Elad Group. The 41-story tower will include
363-units of which 116 will be designated for affordable housing with separate entrances.
40 Riverside Boulevard aka 400 West 61st Street (Parcel 1) – Located on the northwest corner of the site at West 61st Street and
Riverside Boulevard, the parcel was recently sold in April by Carlyle Group and Extell to Boston, MA-based GID Development for $410.8
million. A 2-building complex over a shared podium had been previously designated; and recently filed permit applications reveal 24- and
39-story buildings totaling 858,772 square feet to be comprised of a mix of 595 rental and condominium units, an elementary school, and
18,467 square feet of retail space.
639 West 59th Street (Parcel 4) – located along the West 59th Street border of the site between the 10 Lincoln Square and 10 Freedom
Place projects. Plans were filed in July by co-developers Extell Development and the Carlyle Group for the planned 34-story, 330,152-squarefoot tower that will house 244 residential units and 1,845 square feet of retail space.
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Riverside Center (cont’d)
10 Freedom Place (Parcel 5) - Rendering
Riverside Center Project - Overview Rendering
40 Riverside Boulevard (Parcel 1) - Rendering
5 Riverside Center (Parcel 2) - Rendering
639 West 59th Street (Parcel 4) - Potential Renderings
Riverside Center Bulding Site Map
Source:
http://www.wsj.com/articles/manhattan-parking-garage-with-good-bones-is-listing-for-50-million-1431638352
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Project Plans in Progress - Uptown
555 West End Avenue (Upper West Side) – Developer and architect Cary Tamarkin received approvals
in June from the Landmarks Preservation Commission. Required design modifications included the
lessening of rooftop bulk created by a 10-foot penthouse; and building mechanicals atop the former
home of the St. Agnes Boys High School. The planned residential condominium conversion will see
the existing 7-story, 53,000-square-foot structure rise to 15-stories for a total of 81,000 square feet to
house 17 residential units. The property was acquired last October from the Archdiocese of New York
for $50 million ($617 per buildable-square-foot).
207 West 79th Street (Upper West Side) – Anbau Enterprises filed applications to demolish the
existing 5-story, 23,952-square-foot mixed-use building to make way for a planned 13-story residential
condominium. Located adjacent to the landmarked Lucerne Hotel, the 10,437-square-foot site can
accommodate over 104,000 buildable square feet; and was purchased for $39 million ($375 per
buildable-square-foot) from Carlton Management and AMJ Equities in April.
555 West End Avenue - Rendering
525 East 73rd Street (Upper East Side) – The partnership of Memorial Sloan-Kettering Cancer Center
(MSKCC) and Hunter College closed on the acquisition of the site for $226 million from the NYC
Economic Development Corporation (EDC) in March. The deal was comprised of $215 million in cash for
the East 73rd Street site; an additional $11 million for the 2nd phase of redevelopment at the Andrew
Haswell Green Park situated between the East River and the FDR Drive; and the title transfer of a
Hunter College property at 425 East 25th Street to the city agency. The project can now move ahead
after legal action by residents caused over a year in delays since receiving approvals in December 2013.
A 23-story, 500,000-square-foot outpatient facility on the east side of the lot will be constructed by
MSKCC; and a 300,000-square-foot building will serve as the new home of the Hunter-Bellevue School
of Nursing, which will temporarily be housed in Long Island City having transferred title of their current
location on East 25th Street to the EDC. In preparation for ground breaking, remediation is required at
the site that was previously use by the Department of Sanitation until 2008.
525 East 73rd Street - Rendering
1681-1689 Third Avenue (Upper East Side) – Extell Development is planning to construct a roughly 31-story,
260,969-square-foot residential condominium comprised of 84-units and a 14,000-square-foot retail component.
Development activity has been on the rise in the area in anticipation of the opening of the new Upper East
Side span of the Second Avenue subway line. The 5-parcel site is located between East 94th- and 95th Streets;
and within the residential zone that allows for the highest density residential developments in the city. The
properties had been acquired through multiple transactions:
–
1681 Third Avenue – was acquired in December 2012 for $7.7 million and included 37,752 square feet of
unused air rights;
–
1683 Third Avenue – was acquired simultaneously with 1681 Third Avenue for $3.2 million;
–
1685 Third Avenue – was acquired in February 2013 for $8.625 million;
–
1687 & 1689 Third Avenue – both properties have reportedly been owned by an LLC since 2004 under
which Extell president Gary Barnett is listed as manager.
In June 2014, an 80% stake in the project was sold to an undisclosed party, with Extell retaining the remaining
20% stake.
Source:
http://ny.curbed.com/archives/2015/06/10/upper_west_side_catholic_schooltocondo_conversion_is_a_go.php#more
1681-1689 Third Avenue
Rendering
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Project Plans in Progress - Upper Manhattan
318- and 320 West 115th Street (Harlem) – Developer Madison Advisory Group is redeveloping the former single room occupancy (SRO)1
prewar townhouses into residential condominiums. Each building will increase in height by a single story
on top of the existing 4-stories; and house 6 condo-units spread across 13,426 square feet according to
alteration permits initially filed in 2013. Both buildings last traded hands in 2014 for $3.9 million ($145 per
buildable-square-foot), over double the $1.55 million price in 2012.
1047 Amsterdam Avenue (Morningside Heights) – The Brodsky
Organization will be developing 2-towers totaling 331,000 square
feet adjacent to the Cathedral of St. John the Devine at West 113th
Street. The project will add 428 residential units of which 87-units
will be designated for affordable housing to be spread across the 13
and 15-story towers. A 99-year lease for the land was secured by the
developer in 2013, and will reportedly generate $5 million annually
for the Cathedral. The project which is already under construction is
scheduled for a 2016 delivery.
Heritage Real Estate Partners Triple Play
1047 Amsterdam Avenue - Rendering
1399 Park Avenue (Harlem) – Permit application were filed in March for the construction of a 23-story, 114,000-square-foot residential
development that will house 108-units and a 20,000-square-foot community facility space. The 5-parcel assemblage was acquired for a total
of $12.4 million ($109 per buildable-square-foot).
306 West 142nd Street (Harlem) – Permit applications were filed in June for the construction of a 7-story, 25,400-square-foot mixed-use
development that will house 36 residential units; and a 2,036-square-foot community business facility.
531-535 West 159th Street (Washington Heights) – Permit applications were filed in June for the construction of a 7-story, 29,676-squarefoot residential rental development that will house 36-units spread across 25,476 square feet and a 4,200-square-foot community space.
The existing parking lot last traded in February for $4.26 million ($144 per buildable-square-foot).
Development Sites: Ground Lease
64-72 West 125th Street (Harlem) – DHA Capital is reportedly nearing the signing of a 99-year land
lease from the Fata Organization. The cluster of properties run 150-feet along the southern side of
the street near Lenox Avenue. The developer has proposed a 15-story, 185,000-square-foot mixeduse development that would include several floors of retail space. Other immediate area projects in
different stages of planning and development includes Wharton Properties’ 5-story retail development
at 100 West 125th Street; Lam Group’s mixed-use project comprised of the redevelopment of the
Victoria Theater into a 26-story Renaissance Hotel by Marriott at 233 West 125th Street and a mixedincome, 200 unit rental tower.
64-72 West 125th Street - Rendering
1
Single Room Occupancy (SRO) is a form of housing in which one or two people are housed in individual rooms within a multi-tenant building with bathrooms and/or
kitchens typically shares. They are often a form of affordable housing for low-income or formerly homeless individuals.
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The Bronx
Low Land Prices Heighten Development Activity
Development activity in the city’s northern-most borough is on the rise. The Bronx continues to offer relatively low land prices that averaged
less than $50 per square foot in 2014 according to sources; but are expected to rise due to increased interest by developers. According to
Bronx borough president Ruben Diaz Jr. there has been a total of roughly $7.212 billion in overall development between 2009 and 2014. New
development in 2014 accounted for $1.13 billion, representing a close to 26.5% rise year-over-year. In 2014 residential development totaled
$788 million, institutional development totaled $483 million, and commercial development totaled $134 million; each accounting for 56%,
34%, and 10% of total development investment for the year respectively.
Top 10 Residential Developments
Onwer/Developer
Address
Phipps/Briarwood/The Bridge
432 E 162nd St
Dwelling Units
262
Investment
$91,000,000
M. Melnick & Co., Inc
810 River Ave
134
$58,000,000
Srvcs for the Underserved/B&B Supportive
294 E 162nd St
149
$55,000,000
Douglaston Development
501 Southern Bldg
136
$55,000,000
The Bowery Residence Committee
233 Landing Rd
336
$34,000,000
Signature Urban Properties
530 Exterior St
157
$33,670,450
The Doe Fund
1420 Crotona Park E
60
$30,000,000
Jericho Project/B&B Supportive
2065 Walton Ave
90
$22,383,000
Common Groind
4275 Park Ave
248
$21,152,000
Acacia/Promesa
929 Rogers Pl
51
$17,000,000
Top 10 Commercial Developments
Onwer/Developer
Address
Project
Investment
Signature Urban Properties
501 Gerard Ave
Hotel Hampton Inn
$14,419,080
Storage Deluxe
5470 Broadway
Storage/retail
$16,000,000
Storage Deluxe
2301 Tillotson Ave
Storage
$15,000,000
Sanjay Patel
355 Grand Concourse
Hotel
$8,000,000
Public Storage, Inc
385 Gerard Ave
Storage
$7,909,726
David Blumenfield
521 Hunt’s Point Ave
Stores
$6,300,000
David Malanga
400 Walnut Ave
Warehouse
$6,000,000
Equity One
5520 Broadway
Retail/Restaurant
$5,750,000
MTA/Gaelic Park
205 W 240th St
Concession Stand for Gaelic Park
$4,000,000
Equity One
5510 Broadway
Retail
$3,750,000
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42
The Bronx (cont’d)
Development Activity (cont’d)
At least 15 new permit applications were reportedly filed since the beginning of 2015 for new residential and hotel developments. Other
significant projects currently in different phases of planning and construction include:
FreshDirect / 98 Lincoln Avenue (Mott Haven-Port Morris) – The 500,000-square-foot facility broke ground in December on the vacant
Harlem River Yards site. The company’s new headquarters is expected to be completed before the end of the year.
101 Lincoln Avenue / 2401 Third Avenue (Port Morris) – Co-developers the Chetrit Group and Somerset Partners recently revised plans,
abandoning previous intentions of a potential 6-residential tower project built in 2-phases. The development team’s updated vision for the
1.5-acre assemblage will give rise to a smaller, 2-building project. The 25-story towers will house 1,600 residential units with retail space on
the ground and 2nd-floors for a total project size of about 1.3 million square feet at an estimated cost of $300-$400 million.
Kingsbridge National Center / 29 West Kingsbridge Road (Kingsbridge) – The 750,000-square-foot former National Guard Armory is
being redeveloped into a large ice-sports center.
1500 Waters Place (Morris Park) – The state-owned 33-acre Center of the State’s Office of Mental Health (OMH) will be redeveloped by
Simone Development into a 1.9 million-square-foot mixed-use office, academic, and medical complex.
Development Sites: New to Market
440 Exterior Street (Mott Haven) – Allied Outdoor has introduced an existing single-story, 9,450-square-foot warehouse to the market
offering the potential of an 89,000-square-foot residential development at a current asking price of $5 million ($56 per buildable-squarefoot). Located along the Harlem River waterfront near the East 149th Street Grand Concourse and express 2, 4, and 5-subway stations.
530 Exterior Street aka 110 East 149th Street (Mott Haven) – Monadnock Development filed permit applications in March for a proposed
13-story, 142,113-square-foot affordable residential development adding 157-units to the waterfront neighborhood.
221 East 138th Street (Mott Haven) – Howard Beach, Queens-based Tahoe Development filed plans in May for the construction of a
10-story, 50,000-square-foot mixed-use development that will replace 2-existing warehouse structures. The new building will house 57
residential units spread across 47,000 square feet plus a 3,000-square-foot retail component on ground level and a required 17-space
below grade parking garage. The 10,000-square-foot parcel located at the corner of Canal Place last traded in 2005 for $1.5 million ($30 per
buildable-square-foot).
156 Bruckner Boulevard (Mott Haven) – Forest Hills, Queens-based developer Osher Niyazov filed permit applications in March for the
construction of a 7-story, 31,000-square-foot hotel on the block-through site . The 98-key project will have frontage along both Bruckner
Boulevard and East 132nd Street, replacing an existing single-story commercial structure. The development site was reportedly acquired
for $3 million ($97 per buildable-square-foot) earlier this year.
839-843 Tilden Street (Williamsbridge) – Habitat for Humanity, the non-profit that typically erects single family homes with the help
of volunteers will be erecting their largest U.S. project on the site along with for-profit co-developer Brooklyn-based Almat Group. The
$18 million development dubbed Sydney House will add 60 residential co-operative units to the neighborhood. The NYC Department
of Housing Preservation & Development will be providing $70,000 per unit in subsidies for the 7-story building. Applications have been
submitted to the state by Habitat NYC for additional subsidy of $40,000 per unit in addition to funds requested from the Bronx Borough
President Ruben Diaz and City Council member Andy King. Units are expected to be priced at 50-80% of the area’s medium household
income; and buyers will be required to participate in the non-profit’s “sweat-equity fund” — 250 hours of volunteer work with Habitat per
adult, per household. The development will likely include energy-efficient windows and appliances, construction materials that are locally
sourced and water-efficient fixtures.
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The Bronx (cont’d)
801 Colgate Avenue / 1410 Story Avenue (Soundview) – York Studios filed
permit applications in April for the construction of a 3-story, approximately
100,000-square-foot studio to be primarily utilized for television production that
will sit along the Bronx River waterfront. A 2nd-phase development is expected
to follow adding another 200,000 square feet. The studio complex will offer space
for production studios, woodworking, offices and storage. York Studios will be
relocating from its current 40,000-square-foot facility in Maspeth, Queens. The
development assemblage was acquired in 2012 for $7.1 million.
801 Colgate Avenue / 1410 Story Avenue - Rendering
2406 Hoffman Street (Belmont) – Bayside, NY-based AB Capstone files plans in May for the
construction of a 6-story, 10-unit residential project that will replace an existing 6,900-square-foot
mixed-use structure. The property was acquired in March for $1.24 million (approximately $70 per
square foot). Residential units will begin on the 2nd-floor and spread across 17,694 square feet
with a lobby. A 21-car garage on the ground level will fulfill parking requirements for the company’s
larger student housing project next door at 2409-2415 Arthur Avenue, aimed at attending nearby
Fordham University students. Considered a community housing, the latter project will be able to
achieve greater density than normally allowed by the site’s zoning. Plans for the 38,601-square-foot
development to be constructed on the 4-parcel assemblage were filed last August. The project
will feature a 2-story, 7,500 retail component topped by 4-stories totaling 31,101 square feet of
residential space for 64 student apartments with a slated completion of 2015.
10 Freedom Place (Parcel 5) - Rendering
627 and 629 Faile Street (Hunts Point) – Building applications were filed in June for the construction of the 2-residential developments
on the vacant lot located between Spofford and Randall Avenues. While both buildings will be 4-stories and house 8-units, the former will
total 5,705 square feet of residential space; while the latter will be a somewhat smaller 5,270 square feet. Developer information has not
been verified, but the project delivers a sign of new growth along the South Bronx waterfront that has seen relatively little development in
recent years.
950 Summit Avenue (Highbridge) – Bronx-based JCAL Development will be constructing a
6-story, 56,046-square-foot affordable residential development that will house 58-units for renters
who make no more than 60% of the city’s Area Median Income. The units will be kept affordable
for 60-years; and is being developed on behalf of the city’s Department of Housing Preservation
& Development and the NYC Housing Development Corporation. Applications had been filed last
August for the project that is expected to be completed before the end of 2016. On-site parking
was excluded, a requirement that will likely be scrapped for affordable developments located near
public transportation under the updated zoning code.
Sources:
http://esd.ny.gov/PublicMeetings_Notices/2014/11172014_FRESHDIRECTLEGALNOTICE.pdf
http://thebronxchronicle.com/2015/03/02/borough-president-diaz-releases-annual-development-report/
http://bronxboropres.nyc.gov/planning/2014-annual-development-report-bxbp.pdf
http://www.wsj.com/articles/habitat-for-humanity-plans-bronx-co-op-1430786739
http://www.nychdc.com/pages/Income-Eligibility.html
950 Summit Avenue - Rendering
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For More Information Please Contact:
212.400.6060
•
www.absre.com
200 Park Avenue South, 10th Floor, New York, NY 10003
We Build Partnerships That Last
Although the information furnished is from sources deemed reliable such information has not been verified and no express representation is made nor is any implied as to the accuracy thereof. Sources: CoStar Group, The
Real Deal, Crain’s New York Business, The New York Times, New York Post, New York Yimby, and Commercial Observer

Development Q2 2015

Transcription

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