Thousands of housing units, missed deadlines and another boost for federal housing tax credits.
These describe some of the major housing-related headlines of the week. Thrilling, right?
The first refers to the Midtown South rezoning, which could pave the way for roughly 9,500 new housing units over the next decade. This week, City Council carved out some midblock properties in the Garment District and reduced residential density allowed in the southeast portion of the rezoning in a nod to the manufacturers still operating in the neighborhood. The changes reduced housing projections by 140-ish units.
The fact that the Garment District carveout only affects portions of the midblocks is key.
To exempt all midblock areas on West 36th and 40th streets between Seventh and Eighth avenues would have eliminated a lot more housing opportunities. By my count, at least 458 units of projected housing across six properties would have been shaved off the production numbers estimated by City Planning if residential was removed from all the midblocks in that area (the City Council subcommittee meeting on Wednesday made it sound like that was the change).
The language for the modifications was released Thursday night, which cleared things up a bit, but not before I printed out maps of Midtown South and highlighted the properties on the midblocks where housing would be lost, like a crazy person.
Anyway, some have questioned the wisdom of the carveout, even if it is more surgical than what had previously been proposed.
“This area has long since ceased to include any meaningful manufacturing activity, let alone garment factories or assembly,” Herrick’s Mitch Korbey tells me. “The Planning Commission saw this and appropriately called for a rezoning — we should trust and abide by the thoughtful and careful planning work done by the experts. Maintaining manufacturing zoning where no manufacturing jobs or activity exists is not sound planning — it simply will keep vacant or under-utilized buildings that could have a new and vibrant life as apartments and affordable housing.”
Council members said the changes were made to preserve the area’s unique ecosystem of businesses and ensure “new housing and new business growth can thrive side-by-side.”
Also this week, the state held a meeting about the megadevelopment Pacific Park that — by the state’s own deadlines — should have involved discussions about a newly approved development team for the project. Alas, the meeting was largely about why the meeting was not about the newly approved developers.
Empire State Development previously said that a new development team would be approved and the development rights for six of the Pacific Park sites transferred by August 1. That didn’t happen, according to state officials, because the proposed development team — Cirrus and LCOR — also submitted an application to take over another property known as Site 5. The officials said they need more time to review both takeover bids. They hope to finish this up sometime in September. Maybe. For a full rundown, check out my story.
At the federal level, housing groups this week celebrated the Federal Housing Finance Agency’s decision to raise the amount that Fannie Mae and Freddie Mac can invest in low-income housing tax credits. Each can now invest $2 billion, up from the $1 billion cap set last year.
The change comes after the “big, beautiful” reconciliation bill expanded the tax credits. Per the National Housing Conference’s David Dworkin, the increase is an important complement to the credit expansion, because it will help “ensure that the market will absorb the additional credits without diminishing their value.”
What we’re thinking about: What questions do you have for the mayoral candidates that haven’t been addressed in their various public events and interviews? Send a note to kathryn@therealdeal.com
A thing we’ve learned: The number of listings submitted to local listing services between June 11 (when the FARE Act went into effect) and July 31 has dropped 74 percent year-over-year, TRD’s Sheridan Wall reports.
Elsewhere in New York…
— The DOJ has subpoenaed New York Attorney General Letitia James, the New York Times reports. The investigation concerns two separate cases from James’ office: the suit in which President Trump and his organization were found liable for fraud, and a case regarding the National Rifle Association’s tax fraud. This follows the FBI’s probe into the AG’s real estate dealings.
— Andrew Cuomo presented his affordability plan during a press conference on Thursday, comparing his agenda with Zohran Mamdani’s, which he called irresponsible and unrealistic, amNY reports. Cuomo outlined his plans for transportation, groceries, wages and taxes. This is the second briefing of its kind, following Monday’s discussion of crime and public safety.
— Mayor Eric Adams opened a new campaign office in Mill Basin. One problem: the building has a full vacate order still in place, according to the City. In 2023, the parapet of the building collapsed, leading the Department of Buildings to issue the vacancy order that’s still in effect. Though the wall has been repaired, the building will need to be reinspected before the campaign office can open. — Quinn Waller
Closing Time
Residential: The top residential deal recorded Friday was $22 million for a condominium unit at 520 Park Avenue. The Lenox Hill condo is a new-construction unit and 4,700 square feet. Peter Ashe’s Asher Alcobi and Meirav Gavrielov have the listing.
Commercial: The top commercial deal recorded was $13.3 million for a development site at 20-35 130th Street. Manhattan developer Turnbridge Equities purchased the 103,000-square-foot Queens lot.
New to the Market: The highest price for a residential property hitting the market was $2.9 million for a condo unit at 2505 Broadway. The Upper West Side condo is 1,300 square feet. The Agency has the listing.
Breaking Ground: The largest new building project filed was for a proposed 95,238-square-foot, six-story, mixed-use building at 444 Carroll Street in Brooklyn. Architect Kao Hwa Lee is the applicant of record.
— Joseph Jungermann