Durst shelves Hallets 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

TRD 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 Hallets 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
The architect claims the design, construction and marketing of the tower rips off the design of a tower he planned and modeled for his thesis

Lawsuit over WTC design is whittled down

Durst Organization chairman Douglas Durst in a coworking space

Durst Ready: Developer to launch flexible office space arm

The MTA says it has the funding to extend the Second Avenue Subway to East Harlem, and the real estate industry is thrilled. (Credit: Getty, iStock)

Developers see dollar signs in Second Avenue subway extension

733 Third Avenue and Durst Organization president Jordy Durst (Credit: Google Maps and Durst Organization)

Tax firm EisnerAmper relocating large East Side office

One Bryant Park (Credit: The Durst Organization)

Bank of America leads $1.6B refi for tower named after it at One Bryant Park

The issue came to light after some owners realized they were incorrectly billed in June (Credit: iStock)

“A big, big, big success,” NYC Finance Department says of new system that overcharged building owners on property tax

With the elimination of vacancy decontrol, landlords can't deregulate units in buildings receiving 421a until the tax break expires (Credit: iStock)

Collateral damage? Real estate sounds alarm on rent regs’ impact on condos, 421a

4 World Trade Center and The Durst Organization president Jonathan Durst (Credit: Google Maps)

Durst inks 55K sf of leases at 4 Times Square

arrow_forward_ios