The Real Deal New York

Silverstein backing out of supertall West Side resi project

Firm hires CBRE to market site where it planned 1,100-foot-tall skyscraper

October 19, 2015 01:15PM

514 Eleventh Avenue

514 11th Avenue in Hell’s Kitchen (inset: Larry Silverstein)

Silverstein Properties wants out of a large West Side development site where it had planned to build one of the tallest residential towers in the city, with the firm hiring CBRE to sell the property.

Silverstein had planed to build about 1.8 million square feet of residential and retail space at the site, which is located at 514 11th Avenue and takes up a full block between West 40th and West 41st streets.

The firm’s plans also called for a residential tower soaring over 1,100 feet that would house more than 1,400 units of luxury housing and 300,000 square feet of retail space, according to Crain’s.

While Silverstein acquired the site, which formerly housed a Mercedes dealership, for around $100 million earlier this year, difficult negotiations with the city over the development’s affordable housing component supposedly factored into the company’s decision to now offload the property.

Silverstein reportedly offered to reserve at least 250,000 square feet at 514 11th Avenue for affordable housing, while the city sought 375,000 square feet. While Silverstein eventually agreed to the city’s figure, the company said it is now focusing on other large projects in its pipeline.

“With everything we have going on at the World Trade Center and elsewhere, this just isn’t the right time for us to develop this project,” a Silverstein spokesperson said.

The site is located just east of the developer’s Silver Towers, two residential skyscrapers that hold around 1,300 rental units. [Crain’s]Rey Mashayekhi