April 2023 » Market Analysis » NY New Developments

April 2023 New York New Developments

Major Developments:

Gov. Kathy Hochul dismissed doubts around Penn Station’s redevelopment and expansion, as the plan appears to be in trouble. The development is expected to yield 18 million square feet of commercial space and around 1,200 apartments. Vornado controls five of the eight development sites. State authorities approved a plan to partially pay for the redevelopment of the transit station, estimating that payments in lieu of taxes from private development could generate up to $3.75 billion for the project.

The donut and coffee chain last year led the city in ubiquity again with 620 storefronts, five more than the previous year, but down from a pre-pandemic peak of 636 locations.

Adam Leitman Bailey is working a new angle to block a shelter conversion that could displace elderly tenants from a Greenwich Village building. In 2021, tenants tapped the attorney to sue the owner of 27 West 11th Street, where nonprofit Project Renewal planned a 90-bed women’s shelter. The suit alleged construction would disturb asbestos and lead paint in the building, endangering its few remaining tenants. They hoped the suit would stall construction so long that Project Renewal would find another site.

The state legislature is resisting Gov. Kathy Hochul’s proposal to allow more charter schools in the city.

Bold Charter School is renting the planned eight-story, 81,600-square-foot school at 1472 Boston Road.

Nonprofit Project Renewal filed plans for a 21-story shelter at 215 East 45th Street. The 217-foot-tall development will span 135,000 square feet and include a 171-bed shelter for women.

United American Land has 43,000 square feet across 15 lots between Jay, Fulton, Lawrence and Willoughby streets, which would allow 516,000 square feet of buildable floor area.

Adrienne Adams, the City Council Speaker, proposes to build new public housing on existing empty spaces within the New York City Housing Authority system. Infill developments will build on empty spaces next to existing properties. At Chelsea-Elliott Houses and Fulton Houses new construction would replace units in disrepair and tenants would be relocated to the new developments. They are proposing building new apartments while tenants reside in the old ones, moving them upon completion, and demolishing the old buildings for either new public or mixed-income housing.

Resolution Real Estate is ready to convert part of the landmarked building at 330 West 42nd Street into apartments. Floors 12 through 34 will be converted into 224 apartments at a cost of $100 million. The manager launched a $120 million renovation and repositioning of the 580,000-square-foot property.

Ironwood Realty (Ashkenazy) is trying to save 635 Madison and has faced foreclosure after defaulting on a $90 million loan where he holds the ground lease. Ironwood is trying to use a pandemic-era protection to keep the asset that expired more than a year ago.

New York Community Bank’s deal to buy loans from the Signature Bank excludes the failed institution’s multifamily mortgages.

Gov. Kathy Hochul announced a request for proposals to redevelop the Lincoln Correctional Facility at 31-33 West 110th Street. The 10,000-square-foot site is not in use. Empire State Development is accepting proposals for the site until May 23.

Aview Equities failed to repay the balance of $36.7 million and Merchants Bank has filed a lawsuit seeking foreclosure on an apartment conversion at 19 West 55th Street.

Customers Bank settled a foreclosure action against Allen Stein and Leopold Schwimmer, the guarantors on a $12 million loan for 417 West 180th Street and 570 West 182nd Street.

RJ Capital Holdings filed plans for 76 units at 609 Fifth Avenue and is partnering with Top Rock Holdings. Plans filed with the Department of Buildings call for the 14-story commercial building to be converted into a 29-story mixed-use property, which would tack on 93,000 square feet. The building, which would be 226,000 square feet with the conversion, would also see its height doubled to 400 feet.

Gemdale amended plans at 45 Broad Street for a planned 60-story residential tower and 150-unit condo project at the site.

New York Embroidery Studio’s move early last year to a 79,300-square-foot space at 140 58th Street in the Brooklyn Army Terminal. Before that, the most recent big move was when Union Square Events took 70,000 square feet of space at 147 41st Street at the end of 2020.

New York City industrial market

Market Indicator Q4 2022 Q4 2021 Change year over year
Vacancy Rate 4.20% 3.70% 0.5%
Net Absorption 1,200,000 1,100,000 9.1%
Asking Rent per sf $25.63 $20.60 24.4%

Property Tenant Square Feet
1200 Zerega Avenue, Bronx Kamco Supply 57,544
182-22 150th Avenue, Southern Queens Schenker Inc. 83,127
29-76 Northern Boulevard, Long Island City The Fortune Society 65,000
568 Meserole Street, North Brooklyn P.W. Shoes 25,730

Outer borough industrial market reports for Q4 2022 and Q4 2021.

NYU’s Tisch School of the Arts signed a long-term lease in Sunset Park for 45,000 square feet in Building 8. The Martin Scorsese Virtual Production Center will include two 3,500-square-foot stages, two 1,800-square-foot television studios, a bistro and a lounge. There will also be a training space for students to learn the making of film visual effects.

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