Major Developments:
The Trump administration has taken the MTA off the redesign of Penn Station, a project that was expected to cost at least $7 billion. Amtrak, with the backing of the DOT, will solely lead the overhaul of the station, as well as its possible expansion. The DOT revoked a $72 million grant awarded to the MTA and reduced a $71 million grant to Amtrak, a move the DOT says will save taxpayers $120 million.Adams plans to build 6,000 congregate apartments, low-priced units with on-site health, mental health and substance abuse services as part of his 2026 budget proposal.
The city plans to spend $46 million over the next few fiscal years to deliver the apartments. Roughly 4,500 of the units will be new, while another 1,300 are already built but need preservation work.
Local Law 97 has a bewildering array of regulations, which each have their own deadlines, penalties, grace periods, exemptions and acronyms, notably the CBL, Covered Buildings List. May 1 is the deadline for properties on the CBL to submit annual compliance reports for Local Law 97. There is a 60-day grace period that pushes the actual deadline to June 30, and then owners can get a 30-day extension if a registered design professional or qualified retro-commissioning agent affirms being hired to complete the report.
A plan to build affordable housing and green space around Penn Station. Simone called on the state to revisit the general project plan to bring 18 million square feet of commercial space and more than 1,700 apartments to properties surrounding Penn. Simone’s proposal called for upwards of 4,900 residential units. It also envisioned a park on the former site of the Hotel Penn.
Related Companies, Oxford Properties Group and Wynn Resorts are trying to sweeten the pot. The firms say they can build up to 4,000 residential units on the site. The project is heading toward a critical City Council vote on proposed changes to the 2009 rezoning of the Western Rail Yard, which will determine whether it can compete for a casino license.
The rezoning of 42 blocks in the neighborhood would be the first two new zoning districts allowing residential space to be built 15 or 18 times the size of a development lot. The plan could net 9,700 units, with at least 2,800 offered at below-market-rate rents. But some elected officials are pushing back. The state lifted the city’s cap on residential space, which had been set at a floor area ratio, or FAR, of 12. to create new districts that permit FARs of 15 and 18 as part of the City of Yes for Housing Opportunity.
Canadian tourism to New York City has significantly declined, impacting city tour operators, hotels, and cross-border coach companies, with tour operators reporting a 20-40% drop. February saw over 30% fewer flights from Canada at JFK, over 20% at LaGuardia, and about 15% at Newark. Hotel Association of New York members have experienced a 5-15% decrease in Canadian bookings in the last month. Last year, 1 million Canadian visitors contributed $600 million to the city's economy.
Feil and its joint venture partners BLDG and the Nakash Family are starting construction on the conversion of the 14-story, 85,000-square-foot office building at 140 West 57th Street into 47 luxury condos.
Apollo Global Management, RXR Realty and SL Green Realty are planning to convert the 38-story office building at 5 Times Square into up to 1,250 units of housing, of which 25% would be affordable. The project is expected to obtain qualification for 467m, a new property tax break for office-to-residential conversions where at least 25% of units are set aside as affordable.
The Rent Guidelines Board set a 6.25% rent hike on one-year leases. Two-year leases saw a bigger recommended hike at 9.75%.
Larry Silverstein withdrew his application for a $3.7 billion loan to develop 2 World Trade Center from a federal program designed to finance rail infrastructure improvements. 175 Park Avenue applied to the same program for $4.8 billion to finance their super tall office/hotel tower.
Naftali’s One Williamsburg Wharf unfinished condo tower at 470 Kent Avenue hit 50% sold One Williamsburg Wharf, the 89-unit condo component, is now over 50% sold.
Aurora Capital Associates is preparing to list a duplex condo penthouse at its 140 Jane Street project for $88 million penthouse.
Saks Fifth Avenue folds its casino proposal. Retailer shifting its focus to “other strategic priorities.”
Due to $28 million in unpaid taxes, emergency repair fees, and penalties, the city foreclosed on the 49-unit building located at 2201-2205 Davidson Avenue in the Bronx. Ownership of the property has been transferred to Neighborhood Restore, a nonprofit developer, and Lemle and Wolff, a private manager. Their plan involves renovating the building and establishing permanently affordable co-ops to facilitate tenant homeownership.
Related Fund Management unloaded five rent-stabilized properties for 45% of what they paid in 2015. The Bronx buildings are 100% rent-stabilized.
The New York City Economic Development Corporation postponed a critical vote on a $3.1 billion plan to transform the 122-acre swath of Brooklyn Marine Terminal, Brooklyn waterfront. This marks the second delay after an earlier postponement in March.
Skyline Developers filed plans for a 34-story residential building at 185 East 80th Street that includes 244,000-square-foot, 508-foot-tall property with 66 residential units. 23 basement parking spots, a ground floor retail space.
Cohen and Hard Rock International are partnering with Slate Property Group to tack 450 affordable housing units onto their casino plan for Queens.
Blackstone files suit against Thor and its partner at 25-27 Mercer Street alleging default on a $10 million mortgage backed by the 9,500-square-foot commercial condominium.
LuxUrban relinquished Hotel 57, a 210-key property at 130 East 57th Street to Apple Hospitality REIT. LuxUrban saved $14 million in accrued liabilities and $5 million in annualized losses from the settlement.
LuxUrban also lost control of the 118-key Blakeley at 136 West 55th Street. A judge approved LuxUrban’s eviction, but it was halted after the operator agreed to pay $1.8 million in back rent.
A site at 34th Street and Eighth Avenue, where Vornado is planning to begin construction of a rental property “shortly.” He has also repeatedly indicated that Vornado is considering including housing as part of the Penn 15 development. The letter also discusses the prospect of Vornado selling its office buildings.