Developer’s Digest?: This Week's Top Development News
State Pledges $1 Billion for NYC Housing: Who's Going to Get It?
February 28, 2025
New York lawmakers are debating how to allocate the $1 billion pledged under Gov. Kathy Hochul’s City of Yes for Housing Opportunity initiative. The funding, meant for affordable housing construction and preservation over five years, still requires legislative approval. Some officials, including Sen. Cordell Cleare, want it to deepen affordability at Harlem’s Seneca project, while others, like Assembly member Nikki Lucas, seek homeownership support in East New York. The funding could benefit stalled projects like Innovation QNS and Pacific Park, but concerns remain over its allocation and whether it should extend beyond NYC.
Source: The Real Deal
Gov. Kathy Hochul Wants Developers to Build Housing on Intrepid Museum Parking Lot
February 28, 2025
Gov. Kathy Hochul plans to turn a 50,584-square-foot parking lot used by the Intrepid Museum in Hell’s Kitchen into a mixed-use residential development, aiming to boost New York City's affordable housing supply. The state-owned site at 621 West 45th Street is one of Manhattan’s largest undeveloped parcels. Developers must submit proposals by May 15, ensuring 25% affordable housing while maintaining museum parking and a pedestrian bridge. The project is part of Hochul’s broader plan to build 15,000 homes on state-owned land, addressing the city's 1.4% vacancy rate and high housing demand.
Source: Commercial Observer
Industrial Developers Turn Away From New York City
February 26, 2025
New York City’s new special permitting process for last-mile distribution centers under the City of Yes for Economic Opportunity initiative is deterring industrial development. Turnbridge Equities, which recently acquired a Brooklyn site, now sees buying similar land as too risky. No new industrial projects broke ground in Q4, and New York-based firms are shifting investments to Florida and other states. With shrinking industrial land supply, rents are rising, and warehouse owners lack incentives to modernize. Experts suggest clear sustainability and workforce standards instead of uncertain permitting to encourage development while addressing environmental and community concerns.
Source: Bisnow
New York City Announces $390 Million ‘City of Yes’ Infrastructure Investment In Bushwick, Brooklyn
February 28, 2025
New York City will invest $390 million in Bushwick, Brooklyn, to upgrade infrastructure, reduce flooding, and improve water service. Announced under Mayor Eric Adams’ City of Yes for Housing Opportunity initiative, the project will replace three miles of sewer pipes and nearly a mile of water mains. The new system will expand sewer capacity by over 850% in some areas, reducing flooding risks. Additional improvements include Vision Zero street safety upgrades, nearly 400 rain gardens, and FloodNet sensors for real-time monitoring. Construction begins in 2029, marking Bushwick’s largest infrastructure investment in decades.
Source: New York YIMBY
Luxury Condo Building Could Replace Greenwich Village Office Space
February 24, 2025
Legion Investment Group, led by Victor Sigoura, plans to build a 30-story mixed-use tower at 5 W. 13th St. near Union Square, replacing a vacant office building. The $57.5 million site will feature 36 condo units, ground-floor retail, and luxury amenities like a gym, pool, and golf simulator. Midtown-based Kohn Pedersen Fox is designing the project. Sigoura, actively redeveloping Greenwich Village, is also planning a 20-story condo tower near the High Line. The new development follows Legion’s strategy of acquiring and transforming properties in prime Manhattan locations.
Source: Crain's New York Business