The Real Deal New York

Kevin Maloney buys $56M air rights from MTA for LIC tower

Developer is planning a 77-story residential building

March 26, 2015 07:59AM

29-37 41st Avenue in Long Island City and Kevin Maloney

29-37 41st Avenue in Long Island City and Kevin Maloney

The MTA is getting $56 million in a deal to sell air rights to Property Markets Group and joint venture partner Karman Hakim, who are planning to build a 77-story residential tower on Queensboro Plaza in Long Island City.

Under the current zoning, Kevin Maloney’s PMG would be able to build a 40-story tower on the site, at 29-37 41st Avenue, but the purchase of 478,00 square feet of air rights will allow it to add up to an additional 39 stories, according to the New York Daily News. Plans filed earlier this month called for 70 stories. 

“Every dollar we are able to secure through real estate transactions helps to reduce the pressure on the fares, tolls and taxes that support the MTA,” agency spokesman Aaron Donovan said. Critics have pointed out that plans for the tower do not include affordable housing.

As part of the deal, PMG will acquire three small parcels of land, one of which will be developed into a public park.

The developer picked up the site for $46 million late last year. [NYDN] — Tess Hofmann

 

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