Did you know four of the five largest buildings in Manhattan developed with the 421a tax abatement are on the West Side? Or that Silverstein Properties was behind two of those? Friday marks the end of the line for the ongoing 421a dispute between labor and real estate — the developer tax cut program, which has funded the creation of tens of thousands of apartments across New York City since 1971, is set to expire. TRData, The Real Deal‘s new source for real estate research, has compiled the five largest Manhattan apartment buildings by unit count where owners receive a 421a tax break (among others).
This 1,000-unit high-rise was built by the Brodsky Organization in 1995. Its 421a tax cut, which this year is down $1.6 million, is set to expire later this year. The Lincoln Square tower is all rental and monthly rates average about $3,300, according to StreetEasy.
Silverstein Properties’ Silver Towers on the Far West Side were built in 2005 and will receive the 421a break until 2031. The owner tax discount for this year is about $5.8 million. The total unit count of the two towers is 1,359, although only 934 of the units are included in the 421a registration, according to Department of Finance records.
Standing just next door to Silver Towers is 1 River Place, a 921-unit apartment complex that was also developed by Silverstein Properties. Built in 1999, its abatement this year is $6.3 million and Silverstein will continue to receive 421a benefits until 2022.
Known by no fewer than three different names over its so far relatively short life, New York by Gehry at 8 Spruce Street is perhaps the best known rental that is currently drawing a tax benefit under 421a. Owner Forest City Ratner’s cut this year amounts to $11.5 million.
TF Cornerstone’s 839-unit 505 West 37th Street was built in 2007 and receives $10.5 million tax break this year. Located practically on top of the newly opened Hudson Yards subway station, it should be getting a lot of company soon, as towers built by Related Companies, Brookfield Property Partners and others are on the rise.
All 421a tax abatement information was compiled with records from the NYC Department of Finance and NYC.gov websites. For more research and reports on New York City real estate visit TRData. – Will Parker