Kushner Companies said decision to end talks was “mutual”
March 29, 2017 08:13AM
Anbang Insurance Group abandoned plans to invest in Kushner Companies’ redevelopment of 666 Fifth Avenue.
“Kushner Companies is no longer in discussions with Anbang about 666 Fifth Ave.’s potential redevelopment, and our firms have mutually agreed to end talks regarding the property,” a Kushner spokesperson told the New York Post.
The Chinese insurance conglomerate was reportedly in advanced talks to buy a stake in the Midtown office tower and help Kushner redevelop it into a retail and condo building. The partners were seeking a $4 billion construction loan But some observers immediately expressed doubts about the strength of Anbang’s commitment and the wild numbers that circulated.
Investor documents obtained by Bloomberg projected that the completed redevelopment would be $7.2 billion, and another estimated cited by the Wall Street Journal valued a redeveloped 666 Fifth at $12 billion, which would easily be a record in America for a single building. That plan included tearing out the building’s steel frame and adding an additional 40 floors. The residential portion of the building would total 464,000 square feet, with condos projected to sell for $6,000 a square foot. If the Kushner’s went for the $12 billion plan, it would leave them with a 20 percent stake in the finished project. Kushner would also have to buy out its partner Vornado Realty Trust as well as the office tenants.
With Anbang out of the picture, Kushner will have to find a different equity partner. To complicate matters, the Post reports Kushner will not work with foreign sovereign wealth funds or companies with business before the U.S. government to avoid potential conflicts of interest. Jared Kushner recently left the family company to work as a senior adviser in Donald Trump’s White House.
Time is not on Kushner’s side. According to a recent Bloomberg report, the property is loosing money because of its high vacancy rate and debt cost. [NYP] — Konrad Putzier
Activity varied across the board, though every borough saw a substantial decrease in new building filings. Manhattan fared the best, with units filed dropping from 5,593 to 4,193. Queens’ small year-over-year increase in 2015 was completely reversed in 2016, with numbers dropping from 9,591 to 5,981. Brooklyn was impacted even worse, with numbers dropping from 11,554 to 6,449. The Bronx was also hit hard, falling from 6,317 units filed in 2015 to 3,919 in 2016, and Staten Island rounded out the five boroughs’ misery with a fall from 1,214 to 831.
The trend this year would seem to indicate that the market downturn that became pronounced in Manhattan during last year’s report is now leveling out, while the tsunami of negativity is now reaching the outer boroughs. Brooklyn’s pipeline submissions have fallen by almost 70 percent since the height of 2014, while activity in Queens, the Bronx, and Staten Island is returning closer to typically anemic levels.
In terms of the largest projects, Queens easily led the pack. A massive filing for a 921-unit project in Long Island City this past May was the largest of all, at 23-03 44th Road, under development by the Stawski Group and being designed by Goldstein Hill & West. The 774-unit 23-15 44th Drive, being developed by Chris Xu, comes in second place. It will also be designed by Goldstein Hill & West, and will rise in the same neighborhood, becoming the tallest building in Queens at an anticipated height of 984 feet.
The next two largest projects are set to rise in Manhattan. The 389-unit 430 East 58th Street was filed just before the New Year, and will be designed by the Stephen B. Jacobs Group and developed by Gamma Realty. 515 West 42nd Street comes next, which is being designed by Handel Architects and developed by BD Hotels, with 350 units in all.
Brooklyn rounds out the top five multi-family filings for 2016 with the 311-unit 3514 Surf Avenue, which was also filed just before the New Year. That building is being developed by John Catsimatidis and designed by Goldstein Hill & West.
While large multi-family construction waned in 2016, the city saw a surprising surge in hotel development, which would ordinarily be a positive sign. The number of rooms filed at the DOB rose from 4,286 to 5,653, increasing by 31 percent. Unfortunately, many of these filings came in periphery neighborhoods that do not ordinarily see anything of the sort, offering an ominous sign of the worsening homeless crisis, as one such project in Maspeth created a community uproar when it transitioned from hotel to homeless shelter last year.
On the plus side, Queens will soon gain the city’s largest hotel outside of Times Square. 24-09 Jackson Avenue will have 1,260 rooms in all, rising 50 floors. The Toyoko Hotel Chain is behind the project, which promises to help cement Court Square as a burgeoning 24/7 neighborhood.
“The Mayor’s policy on housing seems to be a series of ad-libbed responses rather than any type of cohesive plan to promote affordability, and consequently, all types of development are likely to be affected by continued uncertainty regarding what is actually happening, since no-one in local government seems to have any idea what is going on.”
With regards to 2017, more of the same is likely, if not worse. As new development applications have continued to plunge, both the governor and mayor have focused on fanciful vanity projects like creating unrealistic renderings for expansions and renovations at LaGuardia and John F. Kennedy airports, as well as Penn Station. With the Second Avenue Subway’s costs beyond those of any other line on Earth, government continues to spend the city into oblivion, and plans for the latest round of supposed improvements seem unlikely to leave Cuomo’s imagination.
On the ground, the unfolding chaos between dumbfounded community groups and an increasingly kleptocratic local and state bureaucracy is likely a minor taste of what’s to come later in 2017, as the Maspeth controversy will soon be echoed in similar cases across the rest of the outer boroughs. Whether all of these hotels end up being used to house homeless people remains to be seen, but it is becoming increasingly clear that a solution to the city’s worst-ever homeless numbers is eluding a mayor whose mantra has been “affordable housing.”
In any event, if there are any bright spots, the boom that began in 2014 continues to echo in the city’s skyline. While new building applications may be down substantially, many of the projects that were filed for during the frenzy are now rising out of the ground. Since last year’s report, 175 Greenwich Street (3 World Trade Center) has topped-out, One Vanderbilt has begun construction, and the official design for 220 Central Park South has been revealed, as depicted in the below image created by New York YIMBY’s Jose Hernandez.
The 713-foot tower is one of New Jersey tallest and comes with 762 apartments
BY Tanay Warerkar
In just a little over a month from now, one of New Jersey’s tallest buildings—Jersey City Urby, will welcome its first residents, and today the development team has launched its initial phase of leasing.
This 69-story skyscraper features a mix of studios, one-bedrooms, and two-bedrooms with rents starting from $2,000/month for a studio. One bedrooms start at $2,300/month and two-bedrooms will be available from $3,400/month, but not all of the tower’s 762 apartments are coming online just yet.
Much like its sister project on Staten Island, this development will place a strong emphases on community-building amenities. It’s something the developers, Ironstate Development and Roseland Residential Trust had hinted at last month, and now they’ve presented us with a full list.
The amenities include a fully-equipped gym that offers residents a spate of classes; a communal kitchen where local chefs will offer demonstrations, and there will be tastings and pop-up dinners; a creative lab where residents can collaborate on flower arranging, apothecary, and interior design; a coffee shop on the building’s first floor; and a heated outdoor pool with an adjacent deck for outdoor games and events.
Along with the leasing launch, the developers are also giving us an inside look at a couple of model apartments inside this 713-foot tower.
Located at 200 Greene Street, this Urby project is the second of several planned developments in various cities by Ironstate Development. Following the Jersey City launch, another Urby location is set to open in Harrison, New Jersey by the end of this year.
The first set of residents at Jersey City Urby will start moving in sometime in the first week of April. Now check out the floor plans for all the currently available apartments.