Changes to transit mean changes to real estate.
NYC Ferry is gathering feedback as it plans changes to its routes, which would benefit owners of residential real estate near any new ferry stops — and hurt properties that lose stops. Sunset Park is on the chopping block, for example.
This caused me to think about how mass transit affects rents and property values. Douglas Durst pushed relentlessly — and successfully — for a ferry stop near his Halletts Point development to cut its Manhattan commute from 75 minutes to 4. I was always dubious of Dock 72’s prospects because although the Rudin/BXP/WeWork office building at the Brooklyn Navy Yard has a ferry stop, it’s a mile from the nearest subway.
In contrast, three developments next to the Second Avenue subway line’s East 72nd Street station will be far more valuable than if the Q train had not been extended there. Perhaps they wouldn’t have happened at all.
The projects, as New York Yimby reported, include Chetrit Group’s 1357 Second Avenue (aka 260 East 72nd Street), with 150,000 square feet, 54 condominium units and 5,700 square feet of retail; Shlomi Avdoo’s 242 East 71st Street, which will replace four short buildings with rental or condo units; and Torkian Group’s potentially 60,000-square-foot project replacing three small buildings from 1382 to 1386 Second Avenue.
Before the Cuomo administration finished half of the Second Avenue subway’s planned six-stop extension, only one subway station — Hudson Yards, orchestrated by the Bloomberg administration — had been added since 1989. At one point, Queens residents blocked a train link to LaGuardia Airport through Astoria. Other extensions remain in various states of fantasy.
Few major changes have been made to the city’s transportation network since the initial buildout of subway lines by private companies. Those companies all collapsed when lawmakers capped fares at a nickel, forcing the government to take over the subway system. (Socialists are pushing for the same thing to happen with rent-stabilized buildings.)
Other cities don’t put train stations so close together, which is why New York has by far the most, 441. (The MTA says it has 472, but it counts merged stations more than once.) It’s an accident of history that won’t be repeated.
But more stations are in the works. Besides the next three Second Avenue stops (at East 106th, East 116th and East 125th streets), the MTA plans four Metro-North stations in the Bronx and a light rail line called the Interborough Express from Bay Ridge to Queens. Property owners along those routes will benefit — if they are extremely patient.
What we’re thinking about: A reader sent me a fortune cookie-style comment: “Let real estate be a free market, it will solve all problems.” I replied, somewhat less elegantly but with a wink emoji, “So, you’re OK with getting rid of Opportunity Zones and 1031 exchanges?” Send your thoughts to eengquist@therealdeal.com.
A thing we’ve learned: Greystar manages nearly 950,000 apartments in the U.S., more than three times as many as No. 2 Asset Living. Thank you to Holden Walter-Warner for turning up this information.
Elsewhere…
Fearing development, some folks on the North Fork are worried about a new water pipe being planned by the Suffolk County Water Authority.
Southold Town Supervisor Al Krupski gave voice to their concerns, telling Newsday that water availability “definitely enables new development.”
But the Water Authority shot back, calling that a false narrative.
“Pointing the finger at us and believing that … our efforts are going to be detrimental to Southold, I don’t think that’s fair,” CEO Jeff Szabo told the newspaper.
He noted, correctly, that Southold can dictate development by zoning. As it happens, the town is in the midst of a comprehensive rezoning.
Of course you can’t build anything without reliable water. But lack of water has yet to deter any development on the North Fork, and locals can hardly deny firefighters adequate water in order to prevent new hotels, restaurants and homes.
The most absurd statement in the Newsday story came from environmentalist Mark Haubner, who said the $35 million project would guarantee development because it would demand a “return on this investment.” The nonprofit Water Authority has no say over what development the town allows, and the town has no incentive to ensure the new pipe generates more water use.
Closing time
Residential: The top residential deal recorded Tuesday was $28.1 million for a 7,488-square-foot, sponsor-sale condominium unit at 111 Murray Street in Tribeca. The DeNiro Team at Douglas Elliman had the listing.
Commercial: The top commercial deal recorded was $36.9 million for a development site at 140-142 Fulton Street in the Financial District. The Real Deal reported last year on Bank Hapaolim foreclosing on Hidrock Properties’ site in 2023.
New to the Market: The highest price for a residential property hitting the market was $5.5 million for a 2,700-square-foot condominium unit at 300 East 55th Street in Sutton Place. Kaci Kaplan at Compass has the listing.
Breaking Ground: The largest new building application filed was for a proposed 79,464-square-foot, 80-unit community facility at 67 Meserole Street in East Williamsburg. Aufgang Architects filed the permit on behalf of David Schwartz of Slate Property Group.
— Matthew Elo
