Market Overview:
The Terminal 1 project at John F. Kennedy International Airport is ready to take off with a new $9.6 billion price. The terminal has been restructured, moving forward after a two-year delay. A consortium led by the Carlyle Group along with Johnson Loop Capital Infrastructure and Union Labor Life Insurance Company will finance the development, which is now expected to break ground in mid-2022. The latest cost estimate includes $7.2 billion for design and construction and $2.3 billion in “financing and other costs.”The new Terminal 1 will include 23 international gates across 2.4 million square feet, spanning the collective footprints of current Terminals 1 and 2, as well as the former site of Terminal 3, which was demolished in 2013.
Hudson Companies filed for a 311-unit mixed-use building in East Williamsburg. The filing calls for the construction of an 18-story, 135-foot-tall building spanning 457,000 square feet at 89 Maspeth Avenue.
Beginning in 2024, new buildings in the city will need to go electric and will phase out gas heat in construction projects. New buildings taller than that 7 stories will need to go electric after July 1, 2027. Projects that get their construction documents approved before those dates are exempt.
The City approved the temporary revival of a real estate tax break and required the creation of a task force to study whether distressed office buildings can be converted for other uses. The J-51 tax abatement and exemption is back until June 30, 2022. The incentive is available for residential renovations and conversions, and is considered a lifeline for older co-ops to pay for repairs.
The Housing Our Neighbors with Dignity Act is to encourage the conversion of distressed office and hotel buildings into affordable housing. The program requires that at least 50% of converted units be set aside for residents who experienced homelessness immediately before moving in. The apartments would be reserved for those making an average of 50% and no more than 80% of the area median income.
Two Trees River has a deal that ensures approval of River Ring, its 1,050-unit development on the Williamsburg waterfront. The land use review that went through the community board, borough president, City Planning Commission and City Council in four months.
Energy efficiency among New York City buildings has slightly improved. Almost half of those forced to post an energy grade are still failing. 48.3% of buildings received either a D or F grade. Receiving a D is essentially the worst a building can do, as Fs are reserved for properties that don’t submit data. The share of Ds dropped to 39.2% from 44.1% year-over-year. Meanwhile, the share of Fs increased to 9.1% from 7.6%.
Related Companies is the latest private landlord to sign up for fixing New York City Housing Authority buildings in a joint venture with Essence Development, which will carry out $366 million worth of repairs at over 2,000 NYCHA units in Chelsea.
Galaxy Developers and Monadnock Development each submitted plans for a 22-story building with approximately 300 residential units at 395 Carroll Street and 155 3rd Street. Avery Hall Investments put in paperwork to build nearly 200 units at 653 Union Street.
The scheduled expiration of 421a is in June and is prompting developers to get their foundations in the ground by then.
Largavista Companies filed plans to build a 46-story tower with 518 residential units at 30-05 Queens Boulevard in Long Island City. The building will span about 474,000 square feet.
Howard Hughes Corporation obtained final approval for its mixed-use project in the South Seaport and can start building its 26-story project at 250 Water Street, which will include 270 rentals above a five-story base with Class A office, retail and community space. The $850 million project will also include 70 affordable housing units.
Lions Group filed plans to build a 49-story tower with 363 residential units at 26-32 Jackson Avenue. The company secured construction financing for an adjacent residential project at 27-01 Jackson Avenue with 164 units across 27 stories.
State Sen. Brad Hoylman introduced a bill that would allow multifamily construction on almost all residential lots, eliminate parking requirements in cities and villages, and stop larger localities from requiring large lot sizes for homes. The legislation would prohibit cities and villages from setting minimum lot sizes larger than 1,200 square feet. It would also bar them from requiring off-street parking.
In cities, landowners could build four-family dwellings on any residential lot, or up to six-family buildings within a quarter mile of a train station. In villages, builders could construct duplexes on any residential lot or six-family dwellings near transit stations.
An agreement has been reached to get the Soho and Noho rezoning across the finish line, reducing the density proposed by the de Blasio administration.
Despite the last-minute changes, the plan as a whole will dramatically increase the amount of development allowed in the high-income, relatively low-scale neighborhoods. It is a victory for the administration and advocates for affordable housing, not to mention the re356 Fulton Street, Brooklynal estate industry.
The City Council zoning subcommittee and the Committee on Land Use, which reduces the commercial floor-area ratio in most of the rezoning area to 5. In the Bowery corridor in Noho, the commercial FAR is 7 and the residential FAR is 12, as recommended by City Planning.
The Feil Organization filed plans with the Department of Buildings for a 43-story tower at 356 Fulton Street, Brooklyn. The proposed 475,000-square-foot mixed-use building will feature 356 residential units and 114,000 square feet of commercial space. Feil aims to use 421a, which requires 30% of units to be affordable.
Extell Development is planning a 22-story, 459-unit apartment building at 1637 First Avenue in Manhattan. The project is estimated to cost $120 million.
Apt Developers filed plans to construct a 29-story building in Gowanus at 477 Smith Street. The 422,000-square-foot building would have 496 residential units and about 4,000 square feet of commercial space.
Property Management Group wants to build a 21-story, mixed-use building featuring 344 residential units at 267 Bond Street. The site is also benefiting from the Gowanus rezoning. The proposed 364,000-square-foot building is set to include about 32,000 square feet of commercial space.
The Arden Group proposed a 20-story, mixed-use building containing 351,000-square-feet with 222 residential units, 17,000 square feet of commercial space and 78,000 square feet of community facility at 4650 Broadway in Manhattan.
1522 First Avenue, Manhattan: Extell Development filed plans for a 29-story mixed-use building containing 323,000-square-foot building, 317,000 square feet of community facility and the rest commercial space. The community portion is likely to be medical facilities as the Hospital for Special Surgery is the subtenant of the site owned by Expert Management.
PMG plans to build a 21-story, 173-unit, mixed-use building containing a 230,000-square-foot building, 20,000 square feet of commercial space at 498 Sackett Street in Brooklyn.
Tavros Capital filed plans to erect a 13-story mixed-use building containing 224,000-square-foot building that would feature 261 residential units and about 50,000 square feet of commercial space at 251 Douglass Street, Brooklyn.
Tavros Capital also filed plans to build a nine-story building. The 202,000-square-foot building would include 214 residential units and about 9,000 square feet of commercial space at 577 Union Street, Brooklyn.
Seventh Street Development Group wants to build a seven-story, mixed-use building at 1730 Bedford Avenue in Brooklyn. The 195,000-square-foot building will have 57 residential units, 56,000 square feet of commercial space and about 39,600 square feet of community facility.
Park Tower has entered into a joint venture with Rockefeller Group to develop the multifamily property at a site in Greenpoint, Brooklyn. Terms of the deal and equity split were not disclosed.
Park Tower picked up more than 224,000 square feet of development rights at the site from New York City for $22.9 million.
114 units in the 40-story building are to be affordable housing. There will reportedly be ground-level retail space in the building, which marks one of 11 in the Greenpoint Landing project that will deliver approximately 5,500 units to the area.
Fairstead and Invesco Real Estate are paying more than $350 million for a portfolio of 48 Bronx buildings, totaling 2.3 million square feet across almost 2,000 apartments. Property Resources Corp. is the seller. The properties are scattered throughout the borough.
The Chetrit and Yadidi families are moving ahead with plans for a mixed-use skyscraper. They intend to build a 370,000-square-foot, 69-story tower with 300 residential units at 100 West 37th Street and 993 Sixth Avenue.
Radson Development and Kingspoint Heights will develop 495 11th Avenue to bring two towers, set to stand 56 and 57 stories tall, respectively, between West 39th and West 40th streets. The project will include 350 affordable units, in addition to a hotel, office space and a supermarket.
RXR Realty and TF Cornerstone’s development at 175 Park Avenue has received approval from the City Council. The mixed-use building at the Grand Hyatt site next to Grand Central Terminal will include more than 2 million square feet of office space and up to 500 hotel rooms.
State officials rescinded a request for proposals for a 1.2 acre site on Manhattan’s West Side, where a team led by the Peebles Corp. envisioned a 2 million-square-foot tower built and mostly funded by Black-owned companies.
Gary Barnett’s Extell Development is finally moving ahead with its third development in the Diamond District. The developer filed permits for an 1,100-foot supertall at 570 Fifth Avenue. The project would join the firm’s other jewels in the block-long neighborhood: the International Gem Tower and a planned 534-key hotel along West 48th Street.
