What lies in store for One45 in Central Harlem?
I began yesterday’s newsletter by saying that developers typically don’t share their plan Bs for a site while actively pursuing their preferred design.
And then, of course, I begin today’s newsletter with a project where one version is on the table and another is being negotiated.
I wouldn’t call One45’s situation typical, however. A previous version was abandoned in 2022 amid Council opposition. The site briefly became a truck depot. With a new City Council member and a newly-approved tax break in place, the developer revived the project last year.
Which brings us to the two versions of One45: The project currently being considered by the Council is 968 apartments, of which 291 would be affordable. During a Tuesday hearing on the project, Council member Yusef Salaam said, “291 affordable units is definitely too low.”
Developer Bruce Teitelbaum signed a memorandum of understanding in February, pledging to “work in good faith with the relevant agencies and nonprofit development partners to deepen the affordability provided by the project.” Namely, by increasing the number of affordable housing units to 591. If that project is pursued, one of the buildings would be 100 percent affordable and operated by nonprofits Concern Housing and West Harlem Group Assistance.
It would also require public dollars.
“The reality is, without government subsidy, in this case — significant subsidy — it is impossible to execute a plan like that,” Teitelbaum said during the hearing. “It doesn’t mean we’ve given up on it.”
City, state or federal subsidy would also presumably come with its own affordability requirements.
“A deal’s timeline is set by project readiness, developer capacity, and financing availability,” a spokesperson for the Department of Housing Preservation and Development said. “In this case, HPD continues to be actively engaged with the One45 project owner, and we look forward to continuing those conversations.”
Between 2013 and 2024, 1,594 housing units were built in City Council District 9. Approval of a nearly 1,000-unit project would mean adding more than quadruple the number of housing units added to the district last year, according to a recent report by the New York Housing Conference.
This project is nearing a full Council vote as the city’s Charter Revision Commission contemplates potential amendments to the land use review process, with an eye on changing the dynamic that gives Council members veto power over projects in their district.
This dynamic means that a single Council member can kill a project, as we saw with One45 in 2022. Three years later, the project under consideration now has fewer affordable units than the developer’s final offer before pulling the plug. The more affordable version on the table requires substantial public subsidy that may not materialize. Perhaps, as we saw with Related’s Hudson Yards rezoning, a third option will emerge before the project comes to a vote.
On the one hand, four years after the developer filed a land use application for the site, we are in a place where the local City Council member feels that the proposed project has, in some ways, responded to community concerns. Salaam indicated on Tuesday that he appreciates that the developers are committed to making the project as good as it can be. On the other hand, four years after the developer filed an application for the site, we still don’t quite know what will be built.
What we’re thinking about: Who will take over the ground lease at the Chrysler Building? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: The state Assembly this week advanced an amended version of a bill that originally sought to cap rent increases on ground lease co-ops. The latest iteration of the measure abandons that mission, in favor of setting rules for when such a co-op is disbanded and becomes rent-stabilized. The Real Estate Board of New York says the revised measure is still unconstitutional. Keep an eye out for more coverage on this.
Elsewhere in New York…
— The Trump administration reversed its decision to halt work on an offshore wind farm near Long Island, Gothamist reports. Gov. Kathy Hochul said Tuesday that she worked with the Trump administration to save the project, dubbed Empire Wind 1. “I knew this critical project needed to move forward and have spent weeks pushing the federal government to rescind the stop-work order to allow the workers to return and ensure this important source of renewable power could come to fruition,” she said in a statement. “I also reaffirmed that New York will work with the Administration and private entities on new energy projects that meet the legal requirements under New York law.” Meanwhile, U.S. Interior Secretary Doug Burgum posted on social media on Monday that he was “encouraged by Governor Hochul’s comments about her willingness to move forward on critical pipeline capacity.” A spokesperson for Hochul told Gothamist that “no deal on any natural gas pipeline was reached” as part of the Empire Wind 1 negotiations.
— Tenant and real estate groups are joining forces to oppose Mayor Eric Adams’ proposed rent hike for some city voucher holders, City & State reports. A coalition that includes Win, the Real Estate Board of New York and the Legal Aid Society are launching a letter-writing campaign to oppose a proposal that would require recipients of CityFHEPS housing vouchers, who are entering their sixth year in the program, to pay 40 percent of their income on rent, rather than 30 percent.
Closing Time
Residential: The priciest residential sale Tuesday was $18 million for a 3,873-square-foot, sponsor-sale condominium unit at 157 West 57th Street in the Plaza District.
Commercial: The top commercial deal recorded today was in Boerum Hill. A company affiliated with Penn South Capital took over a five-story apartment complex at 354-356 State Street for $11 million. The seller, a company connected to Kushner Companies, sold the complex at a loss, after buying it a decade ago for about $14.8 million.
New to the Market: The highest price for a residential property hitting the market was $6.8 million for a 2,196-square-foot condominium at 1 Central Park South. Alexander Pisa of Douglas Elliman has the listing.
Breaking Ground: The largest new building application filed was for a 66,307-square-foot, 15-story, 99-unit residential building at 27 Mt Hope Place. The applicant of record is Nikolai Katz of Nikolai Katz Architect on behalf of Joel Brach.
— Matthew Elo