Developers are trying to figure out the math for a site on Atlantic Avenue.
Bermuda Realty LLC, an entity tied to the Bawabeh family, plans to build 300 housing units at 1720 Atlantic Avenue in Brooklyn.
The site, which currently operates as a one-story shopping center, sits outside the Atlantic Avenue rezoning area, a 21-block plan that is expected to create 4,600 homes. The City Council approved the rezoning in May.
Local Council member Chi Ossé supported that rezoning, but said he has concerns about the 300-unit project to the east.
“I have been and will always remain a pro-housing Council member, however, I want to emphasize the urgent need for more deeply affordable housing, both in my district and across the city,” he said during a hearing on Thursday. “I’m concerned that this particular proposal will contribute to displacement pressures in this part of Central Brooklyn.”
As the plan stands, 84 apartments will be permanently affordable to those earning, on average, 60 percent of the area median income. The City of Yes for Housing Opportunity allowed the developers to slightly increase the size of their project and add 14 more affordable units than previously planned.
The back-and-forth between the developer and Council member on Thursday provided some insight into the challenges of satisfying competing visions for a project. It also showed that while several City Council members have signed on to the belief that ramping up housing construction is the key to addressing the city’s housing crisis, demands for 100 percent affordability haven’t gone away.
Representatives for the developer indicated that they will look at eliminating a community facility, reducing parking spots and adjusting unit sizes as a way to increase affordability. Brian Cook, an attorney with Brown Weinraub, noted that while parking is required, community members want the project to add parking spots beyond the 50 spots that are already available at the shopping center.
Ossé asked if the developers could provide projections of how eliminating or reducing the planned 116 parking spots could increase the number of income-restricted units and deepen the affordability levels. He said increasing the project’s affordability was a priority, and that its proximity to mass transit should enable shoppers to travel to and from the project, even with grocery bags in tow.
Then he asked a question often dreaded by developers: Had they, instead, considered building a 100 percent affordable housing project with the Department of Housing Preservation and Development?
Cook indicated that the Bawabehs have specialized in retail properties in Brooklyn, and that turning the project into 100 percent affordable would likely require bringing on more staff or another partner with expertise in managing such properties. He also noted that the project has more than 99 units, meaning that the developers will pay construction workers a minimum hourly rate for wages and benefits as a condition of receiving the property tax break 485x.
Additionally, he said it would be cost-prohibitive to continue pouring money into the site while waiting, likely years, for potential city subsidies.
Ossé was not convinced by these arguments.
“I don’t think that’s a plausible excuse, that it takes work and time to work with HPD and nonprofit developers on establishing a 100 percent affordable site,” he said.
Still, Cook indicated that the developers were looking to see if other sites nearby may be suitable for a 100 percent affordable project.
And that’s pretty much where the conversation was left. The most likely scenario seems to be an increase in the affordable units, if the developer decreases parking and makes some of the other changes the team floated Thursday, but we’ll see where the project lands.
What we’re thinking about: What lessons should other condo developers learn from 432 Park Avenue, given the controversy over its design? Are there other buildings we should be looking at? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: Kelsey Grammer was only 38 when he appeared as the titular character in season one of the television show “Frasier,” which debuted in 1993. Learning this completely ruined my day.
Elsewhere in New York…
— During the final mayoral debate, former Gov. Andrew Cuomo was the only candidate who said he would accept an endorsement from Mayor Eric Adams. A day later, the mayor confirmed that he is endorsing Cuomo and plans to campaign with him in neighborhoods where he is popular, the New York Times reports.
— A construction worker fell to his death on Thursday while working on a Manhattan site related to the Gateway tunnel project, Gothamist reports. Officials say the worker, who has not been named, fell 60 feet from a foundation wall that was poured Wednesday, and had to be hoisted up from a massive pit on the site. His death is under investigation.
— ICYMI, here’s a recap of the real estate-related issues that came up during the final mayoral debate.
Closing Time
Residential: The top residential deal recorded Thursday was $9.75 million for a 2,101-square-foot, sponsor-sale condominium at 20 East 76th Street on the Upper East Side. Lauren Muss and Michelle Griffith with Douglas Elliman had the listing.
Commercial: The top commercial deal recorded was $62.6 million for an assemblage of buildings at 150-154 East 79th Street and 1131-1135 Lexington Avenue on the Upper East Side. Combined, the five properties have 18,500 square feet.
New to the Market: The highest price for a residential property hitting the market was $35.6 million for a 10,160-square-foot, single-family townhouse at 436 West 20th Street in Chelsea. Ryan Serhant, Nicole Palermo and Chris Gillis with Serhant have the listing.
Breaking Ground: The largest new building permit filed was for a proposed 277,206-square-foot, 26-story residential building with 347 units at 310 East 161st Street in Concourse. Ariel Aufgang filed the permit on behalf of Dimitrios Katehis of Gilbane Development.
— Matthew Elo
