Durst shelves Halletts Point project’s next phase after 421a expiration

Building 1 to proceed as planned, but the fate of future properties in $1.5B Astoria development is in question

New York /
Feb.February 18, 2016 04:10 PM

UPDATED, 10:22 a.m., Feb. 19: The Durst Organization halted plans for the next phase of the massive $1.5 billion Halletts Point residential development in Astoria for the time being, citing project costs as too high in the wake of the 421a tax abatement’s expiration.

The developer’s planned 2,000-unit complex promises 483 affordable housing units as well as a supermarket, school and waterfront esplanade. The next phase was paused one day after Mayor Bill de Blasio helped break ground on the project in Astoria on Jan. 14.

The multi-phased development’s first building — a 400-unit property with more than 80 affordable apartments and the aforementioned supermarket — started construction before the tax abatement’s expiration, according to DNAinfo. Durst Organization spokesperson Jordan Barowitz said the Building 1’s construction will proceed on schedule.

But the future of the rest of the project will depend on either the renewal of 421a or the implementation of a replacement program to alleviate the development’s “crushing” property taxes, said Barowitz.

The developer tax break expired on Jan. 15 after the Real Estate Board of New York and the Building and Construction Trades Council — the rival industry groups charged by Gov. Andrew Cuomo with hashing out a compromise on prevailing construction wages at 421a job sites — failed to agree a deal.

“Without a new 421a or a replacement program, we can’t continue with the project,” Barowitz told DNAinfo. “Without the abatement, the economics for the project collapse and we couldn’t get a construction loan.” [DNAinfo]Rey Mashayekhi


Related Articles

arrow_forward_ios
HRI executive director Aaron Carr and 700 West 192nd Street (Google Maps, Facebook)
Brooklyn, Manhattan tenants sue landlords over alleged 421a abuse
Brooklyn, Manhattan tenants sue landlords over alleged 421a abuse
1209 Dekalb Avenue in Brooklyn. (iStock, Kutnicki Bernstein Architects)
Industry suffers setback in 421a class action suit
Industry suffers setback in 421a class action suit
Douglas Durst with 1133 Avenue of the Americas (left) and 114 West 47th Street (Google Maps, Getty)
Durst refinances two Midtown buildings with $1.1B CMBS loan
Durst refinances two Midtown buildings with $1.1B CMBS loan
Condé Nast CEO Roger Lynch and Durst Organization chairman Douglas Durst (Getty, iStock)
Condé Nast considers move to Gold Coast to save money
Condé Nast considers move to Gold Coast to save money
261 Madison Avenue and 205 East 42nd Street are among the closed locations. (Sapir, Durst, WeWork)
WeWork dumps several Manhattan locations
WeWork dumps several Manhattan locations
New York Attorney General Letitia James and 63-36 99th Street in Rego Park (Getty; StreetEasy)
“Not on my watch”: AG Tish James fines developers who violated 421a
“Not on my watch”: AG Tish James fines developers who violated 421a
Douglas Durst (Getty)
Douglas Durst tapped to be next REBNY chair
Douglas Durst tapped to be next REBNY chair
Douglas Durst and a rendering of the project (Getty, DRWC)
Durst’s $2B Philly waterfront redevelopment project approved
Durst’s $2B Philly waterfront redevelopment project approved
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...