City’s plan to sell three Lower Manhattan properties meets opposition

October 23, 2012 09:00AM

The city’s plan to sell of three historic but outdated office buildings in Lower Manhattan, all of which would likely becoming luxury housing or hotels, has hit a another snag. According to the Observer, community representatives in the City Hall area object to the plan unless it includes provisions for a school, community center or affordable housing.

The City Council’s subcommittee on planning, dispositions and concessions will gather next week at hearing to discuss the sale of the properties at 22 Reade Street and 49-51 Chambers Street. The disposition of the third building, located at 346 Broadway, was approved back in 1998.

The sale is backed by Mayor Michael Bloomberg as part of his efforts to increase efficiency in government offices. The plan is expected to save the city approximately $85 million in capital costs, with net annual benefits of $4.6 million. The buildings have an estimated value of $187.5 million to $600 million, experts told the Commercial Observer.

As The Real Deal previously reported, developers Vornado Realty Trust, Toll Brothers and Kushner Companies were all seen touring the properties.