Developer’s Digest?: This Week's Top Development News
4 Big Takeaways From The City of Yes Housing Deal
November 21, 2024
The "City of Yes" deal marks the largest update to NYC's zoning code since 1961, aiming to build 80,000 homes, down from the initial goal of 100,000. Key compromises include reduced parking mandates and scaled-back provisions for accessory dwelling units. City Council Speaker Adrienne Adams secured $5 billion for infrastructure and staffing improvements, ensuring the plan's passage despite resistance. While the deal is seen as pro-housing progress, it will initially complicate zoning processes for professionals. Advocates stress that further efforts are needed to meet the city's housing crisis. Full approval is anticipated on December 5.
Source: Crain's New York Business
421a Extension Sees Bulk of Residents Coming to Brooklyn
November 21, 2024
Nov 21 The 421a tax incentive extension is spurring housing development across New York City, particularly in Brooklyn, with 740 projects projected to deliver 78,861 units, including 24,961 affordable ones. Over 60% of these units are expected by 2027, with most using Affordability Option B, requiring 30% affordability. The extension moves the completion deadline to 2031 for projects with a letter of intent by September 2024. Originally expired in 2022, 421a faced criticism for compliance issues but is praised by REBNY for advancing critical housing projects. As NYC needs 500,000 apartments over a decade, the extension supports progress amid challenges with 485x.
Source: Commercial Observer
Extell Plans 37-Story Madison Avenue Tower
November 20, 2024
Gary Barnett's Extell Development plans to replace a Midtown office building at 655 Madison Avenue with a 193,000-square-foot residential tower featuring 62 units and commercial space, designed by Beyer Blinder Belle. The $160 million property purchase, financed by Tyko Capital, suggests luxury condos with potential Central Park views. The existing 24-story, 200,000-square-foot office building, built in 1951, will be demolished. Zoned for 161,000 square feet, the project aligns with Extell's history of developing high-end properties like Central Park Tower, targeting premium sales opportunities.
Source: The Real Deal
Port Authority Bus Terminal’s $10B Revamp Secures City Council Approval
November 22, 2024
The Port Authority Bus Terminal's $10 billion revamp received significant backing, with city officials supporting its modernization to address increased ridership. The City Council approved key aspects, emphasizing improved transit infrastructure and community integration. Features include a new terminal, green spaces, and temporary bus facilities during construction. The plan aligns with broader city goals to enhance the commuter experience while balancing environmental and neighborhood concerns. Completion is expected by 2032, funded through federal, Port Authority, and real estate sources.
Source: Crain's New York Business
Why 99 Could Be The New Magic Number For NYC Apartment Projects
November 20, 2024
The 485-x tax incentive for NYC apartments incentivizes developers to focus on projects with 6–99 units. These smaller developments avoid costly construction wage requirements imposed on larger buildings. By staying under 100 units, developers can reduce expenses, making projects financially viable amid high land and construction costs. This strategy is expected to drive a surge in mid-sized apartment buildings across the city, as developers navigate challenges in creating affordable housing under the new regulations.
Source: Bisnow