Lack of 421a leads to bonafide changes at Essex Crossing

Site 8, originally slated for 80/20 condo project, now set aside for low-income senior housing

TRD New York /
Feb.February 28, 2017 04:15 PM

From left: Taconic’s Charles Bendit, a rendering of Essex Crossing on the Lower East Side, and L+M’s Ron Moelis

There are changes afoot at the Lower East Side megadevelopment Essex Crossing, in large part because of the dormant 421a program.

Site 8, which currently houses part of the Essex Street Market, was originally envisioned as a condo project with 80 percent of the units priced at market rates. But the developers are unable to tap into the expired tax abatement program 421a, so they’ve changed strategies, earmarking studio apartments for low-income seniors there instead.

The New York City Economic Development Corporation on Tuesday filed plans for a 93-unit, 56,285-square-foot building at 130 1/2 Essex Street, according to records. The change to set aside the units for low-income senior housing allows the developers to build 10,000 additional square feet at the site.

The change was part of a broader overhaul of the plans for $1.5 billion mixed-use project, increasing the number of affordable units across the project by 61, the Lo-Down reported. It does, however, mean that there will be fewer affordable condo units and affordable units set aside for larger families.

According to the Lo-Down, the developers — a consortium between L+M Development Partners, Taconic Investment Partners and BFC Partners — made the changes to ensure the project stays on track while politicians debate a replacement for 421a, which expired last year.

The development at Site 8 is part of the second phase of the megaproject. The first phase, which includes four new buildings and Market Line, a 150,000-square-foot marketplace connecting the buildings to the Essex Street market, is slated to open next year. The Essex Street market is also set to move to a new location.


Related Articles

arrow_forward_ios
250th Issue

The Real Deal celebrates 250 issues

From left: Publisher and founder Amir Korangy, Editor-in-chief Stuart Elliott and VP of Corporate Development Yoav Barilan

TRD’s founders share war stories from over the years

Neir’s Tavern (Credit: Google Maps)

City’s oldest bar, of “Goodfellas” fame, gets last-minute lifeline

Neir's Tavern (Credit: Google Maps)

Landlord to bar owner: You don’t have to go home but you can’t stay here

729 Seventh Avenue (Credit: Google Maps)

Lawyer argued façade was safe 3 months before fatal accident

Bill Ackman, LeBron James, and Arnold Schwarzenegger with 787 11th Avenue (Credit: Google Maps and Getty Images)

Celebrity property group caught in $11M construction dispute

Renderings of The William Vale and Denizen Bushwick (Credit: iStock)

All Year’s rating outlook turns negative as bondholders reject two amendments

RXR CEO Scott Rechler and an aerial view of the site (Credit: Getty Images, Google Maps)

RXR plans 21-story LIC office building with manufacturing incentives

arrow_forward_ios
Loading...