The Real Deal New York

City to sell land and development rights worth $110M for $1

Transfer to non-profit will make way for new development on West 53rd Street

November 20, 2014 03:45PM

525 West 52nd Street

525 West 52nd Street in Hell’s Kitchen

Mayor Bill de Blasio is planning to sell a lot on the south side of West 53rd Street, including a development rights package, for $1 to the Clinton Housing Development Corporation.

City officials need to approve the transaction of the 25,204-square-foot plot and 22,241 square feet of transferable development rights on West 53rd Street between 10th and 11th avenues, according to the New York Observer.

The deal would help realize a 103-unit affordable development slated for 530-548 West 53rd Street and Taconic Investment Partners and Ritterman Capital‘s upcoming 405-unit development with 81 affordable units at 525 West 52nd Street, according to a new proposal from the Department of Housing and Preservation cited by the newspaper.

The land and the development rights are worth $110.6 million.

After Clinton Housing gets the land, it will sell part of it to Taconic and Ritterman for $3.1 million for the developers to construct the 45,000-square-foot tapered apartment building at the site. [NYO] — Claire Moses 

 

  • Lordyuyu

    i dont get it. why?

    • john

      Because the rich need their slaves near by.

  • Arik Lifshitz

    $601,086 are being spent (or specifically are going un-collected) in order to build each affordable unit. A voucher given to a tenant directly to rent a $3,000 unit would take 16.5 years to equal that amount, not even counting the present value of the money. We can buy them a $200K condo in the boroughs or Jersey Gold Coast and get 3X as many affordable units as this project. There are cheaper more efficient ways to build/preserve affordable housing. But guess what, we can not possibly build enough “affordable” units to go around to all who are “entitled” to it. There are market based solutions that can alleviate the housing crises more efficiently.

  • Patrick

    What a shame. 110 million could build a massive amount of housing in the boroughs where land is cheaper. Wonder who got paid…

  • rob

    So the city just spent $1mm per unit for affordable housing in one of the hottest neighborhoods? Did I read it right? $110mm for 103 units? AND it will only “help” realize the units? What other costs will the city incur? Sound like a sound fiscal policy.
    Lots of open space in Queens, Brooklyn and the Bx but God forbid affordable housing be build where people need to take a subway to get into the city.

MENU