David Bistricer is taking the 99-unit technique to the acute.
Bistricer’s Clipper Fairness filed plans for seven residential buildings at a long-stalled growth website at 1800 Park Avenue in Higher Manhattan, in keeping with filings with the town’s Division of Buildings. Every constructing would include 99 items, slightly below the wage requirement threshold within the state’s new 485x tax abatement program.
Collectively, the buildings would whole 693 residences and about 628,000 sq. ft. Bistricer confirmed the filings however declined to remark additional.
The plans look like probably the most excessive instance but of a developer structuring a undertaking to keep away from the wage necessities for initiatives with 100 or extra items tied to the brand new tax break. The location at 1800 Park Avenue is outdoors the 2 zones with probably the most restrictive wage necessities, however Bistricer can keep away from them altogether by splitting it up into parcels of fewer than 100 items every.
Bistricer purchased the massive vacant parcel from the Durst Group in November for $50 million, in keeping with property information. Final 12 months, dealer Bob Knakal pointed to the site for instance of a property the place potential patrons had been exploring how one can cut up massive initiatives into a number of 99-unit buildings.
“Each massive website that I’ve the place rental housing is the best and greatest use, builders are spending extra time attempting to determine how one can subdivide the location to create pads on which they may construct 99-unit buildings than serious about anything,” Knakal mentioned on the time.
Dividing initiatives comes with added prices — like duplicate constructing cores, heating crops and roofs — however Knakal mentioned the mathematics can nonetheless work out in builders’ favor.
The location has traded arms a number of instances over the previous decade. Vornado Realty Belief purchased the property from the New York Faculty of Podiatric Medication in 2007 for $39.5 million with plans for an workplace constructing anchored by MLB Community. The REIT offered the parcel in 2013 to Bruce Eichner’s Continuum Corporations for $66 million, and Eichner pitched a 700-unit rental growth earlier than falling behind on his mortgage.
The Durst Group later acquired the property’s $100 million debt and in the end took management of the location in 2017 for practically $91 million.
Plans to redevelop the property stalled after the state’s 421a tax abatement expired in 2022, freezing initiatives that had not already began development. Its substitute, 485x, went into impact in the beginning of final 12 months.
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