Developer’s Digest?: This Weeks Top Development News
Mayor Adams Announces $2 Billion Investment in Affordable Housing
July 17, 2024
New York City Mayor Eric Adams has announced plans to allocate $2 billion toward affordable housing in the New York City Metropolitan area over the next two years, as part of a larger $26 billion investment aimed at constructing 500,000 new homes by 2032. The upcoming funds include $700 million for NYCHA renovations and $1.3 billion for HPD programs to preserve and build affordable and supportive housing. This initiative accompanies the "City of Yes for Housing Opportunity" zoning proposal, which aims to enable more housing construction in every neighborhood. Margy Brown, executive director of the Urban Homesteading Assistance Board, praised the investment, highlighting its potential to address issues of availability, affordability, housing quality, and equitable access. The city's total budget for fiscal years 2024 and 2025 is set at $112.4 billion, closing a previously identified $7.1 billion budget gap.
Source: New York YIMBY
NYC Investment Sales Increase 11% in H1 ’24
July 12, 2024
In the first half of 2024, New York City's investment sales market saw an 11% increase in transaction volume and a 23% rise in dollar volume compared to late 2023. This growth is driven by legislative measures like the 485x tax abatement and Mayor Eric Adams's "City of Yes" zoning reforms. Transactions totaled $11.48 billion across 943 deals, with a notable rise in the second quarter. Mortgage maturities shifted focus to the residential sector, prompting sales and refinancing. About 25% of office transactions involved potential residential conversions. Despite strong overall transaction figures, the lack of a 421a tax abatement replacement has dampened investment in rent-restricted multifamily properties.
Source: ConnectCRE
Why Developers Are Wary of One City of Yes Rule Change
July 18, 2024
While Mayor Eric Adams’ City of Yes plan aims to boost housing construction by loosening zoning rules, developers and experts have raised concerns about a specific rule change. They warn that this alteration could potentially reduce the amount of new housing being built, contrary to the plan's intentions.
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Source: Crain's New York Business
Vertical Progress Imminent for Two-Tower Complex at 80 Clarkson and 570 Washington Street in West Village, Manhattan
July 18, 2024
Construction is set to commence at 80 Clarkson Street and 570 Washington Street in Manhattan’s West Village. The $1.25 billion project by COOKFOX Architects, SLCE Architects, and developers Zeckendorf Development, Atlas Capital Group, and The Baupost Group will feature two towers, 29 and 36 stories tall, with 271 condos, 169 affordable senior living homes, and commercial space. Foundations are nearly complete, with vertical construction about to start. Completion is expected by December 2026.
Source: New York YIMBY
JPMorgan, Hines to Buy 250 Park Ave for $300M-Plus
Jul 17, 2024
JP Morgan Chase, in partnership with Hines, is poised to acquire the office tower at 250 Park Avenue for over $300 million from AEW Capital Management. The deal, brokered by Newmark Group’s Adam Spies and Doug Harmon, is part of JP Morgan Chase's broader expansion strategy, which includes its new headquarters at 270 Park Avenue. The acquisition opens the possibility for demolishing the century-old building to construct a larger development of up to 950,000 square feet, facilitated by the Midtown East rezoning. The sale is yet to be finalized.
Source: The Real Deal