Glenwood Management has filed demolition permits for two Upper East Side buildings it acquired last month, according to city Department of Buildings records.
The permits are the surest sign yet that the rental giant is planning a new development at the site, at 58-60 East 86th Street, between Park and Madison avenues, which currently houses a four-story townhouse and a six-story rental building.
Glenwood filed the demolition permit applications April 25, records show. The company bought the two properties for a combined $31 million — $22.2 million for the townhouse and $8.8 million for the rental building.
Glenwood declined to comment on its plans for the site.
The townhouse comes with more than 20,000 square feet of air rights, which are not subject to landmarking or historic district designation, while the adjacent building at 58 East 86th Street comes with an additional 13,274 square feet of air rights, The Real Deal previously reported. The buildings sit on lots of 3,068 square feet and 2,155 square feet respectively, according to PropertyShark.
Glenwood, which specializes in high-end rentals, has some experience building rental towers on the Upper East Side. In the 1980s and early 1990s, the firm built the Barclay at 1755 York Avenue, the Hamilton at 1735 York Avenue and the Brittany at 1775 York Avenue. Since then, it has ventured into many other New York City neighborhoods.
Recently, developers have complained that historically high land prices make it almost impossible to build rental product in Manhattan, said James Nelson, a partner at Massey Knakal Realty Services who was not involved with the Glenwood deal.
While not referring to Glenwood’s property specifically, Nelson said land prices along Upper Madison Avenue almost dictate the construction of condominiums as opposed to rentals. Exceptions may arise when developers have assembled lots over a long period of time or if the project is slated to have an “exceptional retail component which could average down the price of the residential,” he said.