Developer’s Digest?: This Week's Top Development News
Ian Bruce Eichner Agrees To Build Smaller Project Next To Brooklyn Botanic Garden
November 12, 2024
After seven years of controversy, Continuum Co. secured approval to build a 355-unit apartment building at 962-972 Franklin Ave., near the Brooklyn Botanic Garden. The project, scaled back from initial plans for two 39-story towers, now includes 106 affordable workforce housing units and features a modified 10-degree slope to preserve sunlight for the garden. Earlier proposals faced rejection over concerns about shadows affecting the garden and nearby playground. The final agreement, supported by subsidies, also includes 8,500 square feet of retail and parking. Developer Ian Bruce Eichner had previously threatened to abandon the project due to height restrictions.
Source: Bisnow
City Developing Incentives for Demolition of Obsolete Office Towers
November 15, 2024
New York City is collaborating with the Real Estate Board of New York (REBNY) to create incentives for demolishing outdated office towers, particularly those that are non-landmarked and unattractive to tenants. These efforts could include tax breaks, loan subsidies, or cash grants to reduce the high costs of demolition and support redevelopment into modern office or residential buildings. The initiative is part of broader attempts to address Manhattan’s high office vacancy rates, which stand at approximately 25%, and to encourage new development that aligns with current market demands
Source: Crain's New York Business
SL Green’s $740M Loan on Casino-Bid Building Lands In Special Servicing
November 13, 2024
SL Green's $743 million loan for 1515 Broadway, tied to its casino bid, entered special servicing due to imminent maturity default. With the loan due in March, a refinance could mean higher interest rates. While SL Green’s spokesperson confirms the building is fully leased, Paramount’s layoffs may affect future leasing prospects. The tower, which houses the Miskoff Theater, is also part of SL Green's casino proposal with Caesars Entertainment and Roc Nation, awaiting a decision by 2025 on one of New York's three new casino licenses.
Source: The Real Deal
New York Doesn’t Have Enough Housing. Why Is It So Expensive to Build?
November 14, 2024
Building housing in New York City is expensive and complex due to land scarcity, stringent regulations, and high costs. Limited available land near transit and amenities drives up prices, often requiring costly demolitions. Zoning laws, which restrict high-density residential buildings to just 10% of residential land, demand lengthy and expensive approval processes like ULURP. Developers must negotiate with community boards, local politicians, and residents, adding unpredictability. Construction costs are among the highest globally due to strict material requirements and labor expenses. Maintenance costs, property taxes, and debt repayment further strain budgets. Profitability challenges make affordable housing feasible only with public subsidies, but funding is limited, leaving developers balancing high costs with rent prices to recoup investments.
Source: The New York Times
Infinite Horizons, L+M File Plans for Former Harlem Prison
November 15, 2024
The former Lincoln Correctional Facility in West Harlem is set to become "Seneca," a $90 million, 22-story affordable housing development by L+M Development Partners, Infinite Horizons, Urbane, and Lemor Development Group. Planned for 31 West 110th Street, the project will provide 105 affordable homeownership units, targeting households earning 80-100% of the area median income with a low 5% down payment. The redevelopment aligns with New York's initiative to repurpose decommissioned prisons, following similar projects like Liberty Landing in Chelsea. The site, overlooking Central Park, will also include vibrant community spaces. A timeline for completion is yet to be announced.
Source: The Real Deal