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May 2020

May 2020 » Market Analysis » NY New Developments

May 2020 New York New Developments

New York New Developments

The number of new building filings in January and February dropped 28% and 23%, respectively, from a year ago.

RFR Realty abandoned a deal to buy 900 Third Avenue for $400 million and a retail condo at 1600 Broadway in Times Square for more than $200 million.

Extell’s controversial East Harlem development site is destined to become a low-rise office building. The developer began his assemblage in 2014 by purchasing the East 124th Street parcel for $39 million.

The Empire State Development agency said real estate services must be conducted remotely for all transactions, “including but not limited to title searches, appraisals, permitting, inspections, and the recordation, legal, financial and other services necessary to complete a transfer of real property.” Services can only be conducted in-person only to the extent legally necessary and in accordance with appropriate social distancing and cleaning/disinfecting protocols.” It also reaffirmed that brokerage and branch offices should remain closed to the general public.

SL Green Realty has landed a $220 million refinancing from Wells Fargo for the office building at 10 East 53rd Street.

The Metropolitan Transportation Authority has reached a deal with Mayor Bill de Blasio on how to share revenue on the redevelopment of the MTA’s former Madison Avenue headquarters by a private-sector player. They decided to route $600 million through the city and into transit improvements, counting that money toward de Blasio’s pledge to contribute $2.66 billion toward the MTA’s unfinished 2015 to 2019 capital plan.

Andrew Chung’s Innovo Property Group and Square Mile Capital Management have secured $305 million in construction financing for a 1 million-square-foot industrial development in the Bronx. The loan for 2505 Bruckner Boulevard came from Bank OZK and the finance arm of EverWest Real Estate Investors.

A federal bankruptcy judge in Manhattan approved for the sale of a conversion project where each unit will include a pool at 435 West 19th Street.

The developer, headed by founder Jason Lee, first filed for bankruptcy in the summer of 2018 after his lenders, Soho-based Churchill Real Estate Holdings, filed to foreclose.

Real estate owners can thank a fix to the “retail glitch” rectified in the $2 trillion economic bailout for a new tax windfall. The new legislation allows real estate owners to write off the costs of certain improvements to the interiors of their properties in the first year, known as bonus depreciation, instead of spreading them out over the useful life, which is 39 years for commercial properties and 27.5 years for residential rentals.

JZ Capital Partners are asking $165 million for the full block development site at 1 Java Street (a.k.a. 18 India Street) on the Greenpoint waterfront. The 1 Java Street development site offers unique large-scale conversion or ground-up development possibilities. The property is located directly on the East River and overlooks Manhattan.

The top 10 biggest real estate projects are:

  1. A 377,000-square-foot mixed-use project at 60 Norfolk Street from the Gotham Organization will be a 30-story, 310-foot tall development including residential, commercial and community space with 366 residential units. It is part of a two-building apartment complex that Gotham is developing with the Chinese-American Planning Council that should have almost 500 housing units overall, 20% of which will be affordable and 23% of which will be set aside for seniors.
  2. Taconic Investment Partners filed plans for a 295,000-square-foot project at 312 West 43rd Street. The mixed-use building will stand 32 stories tall with 321 residential units across 270,000 square feet and 25,000 square feet of commercial space. Taconic finalized a 99-year ground lease for it in 2018 with National Real Estate Advisors.
  3. Joseph Ferrara’s BFC Partners is planning to build a roughly 293,000-square-foot, 10-story mixed-use project on Coney Island at 1607 Surf Avenue, Brooklyn. The 376 residential units will span 282,000 square feet, with 11,000 square feet for commercial use.
  4. The 289,000-square-foot mixed-use development is located at 45-03 23rd Street, Queens. This 285-unit project will be split between 194,000 square feet of residential space, 77,000 square feet of commercial space and 3,400 square feet of community space. It will stand 48 stories and 544 feet tall.
  5. A senior housing project at 1810 Watson Avenue, the Bronx will have 201 units spanning about 136,000 square feet. It will stand 16 stories and include community space as well.
  6. Werwaiss & Co. is planning to build a roughly 118,000-square-foot mixed-use, 20-story project at 27-10 44th Drive, Queens. The development will have 157 residential units across 107,000 square feet and 10,000 square feet of commercial space.
  7. A 12-story mixed-use development will span about 117,000 square feet, with 14,000 square feet of commercial space at 299 East 161st Street, the Bronx. There will be 154 residential units across 103,000 square feet, plus 52 parking spots. An LLC linked to Diamond Property Management filed plans for the project.
  8. The city’s Department of Housing Preservation and Development filed plans for an 115,000-square-foot project in Edgemere at 35-01 Beach Channel Drive, Queens. The eight-story project will house 138 residential units, 20% set aside for seniors, across 110,000 square feet. The remaining 5,000 square feet of will be used for commercial purposes.
  9. Toll Brothers is planning a roughly 92,000-square-foot project located at 2686 Broadway in Manhattan. The 13-story development will contain 73 residential units across 84,000 square feet and 8,000 square feet of commercial space.
  10. A roughly 83,000-square-foot commercial project in Ocean Hill from The Leser Group at 1508 Herkimer Street, Brooklyn. The retail and office development will stand seven stories and 100 feet tall with 92 parking spots.
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