Developer’s Digest®: This Week's Top Development News
Hochul Announces $1.4B Mixed-Use Project at Hudson Yards’ 418 11th Avenue
December 19, 2024
New York Governor Kathy Hochul announced a $1.35 billion mixed-use development at Hudson Yards’ Site K, a vacant lot at 418 11th Avenue, near the Jacob K. Javits Convention Center. The project, led by Hudson Boulevard Collective (a partnership of BRP Companies, BXP, The Moinian Group, and Urbane Development), will include 1,349 residential units, with 404 permanently affordable homes, a full-service hotel, a fitness center, and retail space. The development will also feature a 24,000-square-foot Climate Museum and Emma’s Torch restaurant. This project replaces the previously proposed Affirmation Tower and and is the first in the city to take advantage of a zoning reform from the housing deal in this year's state budget that allows developers to build projects with a residential floor area ratio higher than 12.
Source: Commercial Observer
City Tightens Affordability Rules as It Finalizes 421-a Replacement
December 19, 2024
The city has finalized rules for two key property tax incentives: the 485-x construction tax break for multifamily housing and the 467-m program for office-to-residential conversions. These programs, part of April's state budget deal, aim to boost development but include stricter affordability requirements. Affordable units must now set rents three percentage points lower than the state's area median income bands, making them more affordable. The city’s adjustments have drawn criticism from developers, who warn that tighter affordability could limit participation. The application process will be available by the end of the week, with data on applications released in June 2025.
Source: Crain's New York Business
Carpenters Push Construction Wage Bill
December 19, 2024
The Carpenters' Union is pushing for the City Council to increase construction wage requirements on city-funded projects. Council member Kevin Riley is set to reintroduce the Fair Share Act, which would mandate developers to pay prevailing wages for projects receiving $1 million or more in city funding, specifically for those over 50,000 square feet or 50 residential units. The bill, which has garnered significant support, aims to ensure construction projects funded by taxpayers create good jobs. However, real estate groups, including the Real Estate Board of New York, have expressed concerns that the bill may be unworkable and could deter development.
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Source: The Real Deal
860-Foot, 26-Unit NoMad Condo Tower Wins Approval
December 18, 2024
The New York Attorney General has approved Boris Kuzinez's plan to develop a 26-unit, 860-foot tower at 262 Fifth Ave. in Manhattan, with sales expected to begin this spring. The building, designed by Meganom and featuring interiors by Norm Architects, will include luxury units with prices ranging from $9.2 million to $23.3 million. The tower will feature a 70-foot "oculus" and golden arch. Kuzinez, through Five Points Development, had originally planned a taller tower but downsized after selling one of the parcels. This project is part of a growing trend of high-end developments targeting wealthy buyers.
Source: Bisnow
Condo Building Slated to Replace Greenpoint Marble Supplier
December 20, 2024
Ariel Shalom of Le Capital NYC plans to build a six-story residential building with four condo units at 60 Box Street in Greenpoint, replacing a warehouse currently occupied by marble supplier Stonecomb. Shalom is under contract to acquire the 2,567-square-foot lot, listed for over $2 million, though he has not disclosed the purchase price or construction costs. Stonecomb plans to relocate to Astoria as its lease has expired. The project will be designed by StudioSC. Shalom recently completed a similar residential project on a former industrial site in Bed-Stuy, featuring rentals and condos.
Source: Crain's New York Business