Avdoo is looking to capitalize on a rising corner of Lower Manhattan.
Shlomi Avdoo’s firm paid $63 million for a 12,500-square-foot lot on the corner of King and Varick streets in the Hudson Square neighborhood. Valley National Bank financed the purchase with a $40 million loan.
The site has over 125,000 square feet of development rights. Avdoo plans to pursue additional floor area through air-rights deals and a transit-related bonus tied to infrastructure improvements.
The final shape of the project will depend on the additional development rights Avdoo secures, but the developer said he is targeting high-end residential spanning more than 200,000 square feet.
“The neighborhood is changing so quickly, and there’s really no supply,” said Avdoo.
Hudson Square, a newly minted Lower Manhattan neighborhood that sits adjacent to Tribeca, Soho and the West Village, has emerged as an appealing area for developers looking to capitalize on the wealthy buyers flocking to downtown in recent years.
Avdoo’s site at 68 King Street falls just outside of the Greenwich Village Historic District, which has limited most residential development on the west side.
“When you look at people who want to live Downtown, who want to live in Soho, want to live in the West Village, they don’t have many options,” Avdoo said. Because of the limited development options in the area, Avdoo said securing the site was “one of the most competitive processes” he’s seen.
The site is blocks away from where major corporations like Google and Disney have set up shop in recent years, one of the biggest factors that has enticed not just developers, but restaurateurs and retailers to look at opening stores in the once-sleepy neighborhood.
Avdoo’s purchase also comes after nearly one year of sales at 80 Clarkson, the ultra-luxury development from Atlas Capital Group and Zeckendorf Development that is also just a few blocks from 68 King.
While the building has not yet publicly shared sales numbers, the 112-unit development has reportedly been a magnet for wealthy buyers trying to enter the Downtown market. Earlier this month, the building put multiple units into contract for $129 million, which would far surpass previous sales records Downtown if the deal closes at that price.
For Avdoo, the deal is the latest in a string of activity across Manhattan and Brooklyn. In February, the firm paid $52 million for five buildings on the Upper East Side, its first project in the neighborhood.
It has also launched sales at its 21-unit development at 110 Boerum Place in Cobble Hill and started closings at the Bergen, a 105-unit project at 323 Bergen Street in Boerum Hill.
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