The Real Deal New York

Silverback Development plans 65-unit Gramercy condo

Firm’s founder Josh Schuster said project will cost $100M
March 09, 2017 04:00PM

Josh Schuster

Silverback Development is planning to build a 13-story condominium building on Second Avenue in Gramercy Park.

The proposed building at the corner of East 21st Street and Second Avenue would reach 145 feet and contain around 65 apartments, Crain’s reported. The project is expected to cost $100 million, with construction is due to begin next year. The total sellout is pegged at $150 million.

Former DHA Capital principal Josh Schuster formed real estate investment firm Silverback last year. For this project, he is partnering with the owner of the site, whose name he declined to disclose.

The site consists of three parcels, one at 359 Second Avenue, another at 351 Second Avenue and a third at 353-357 Second Avenue. The three sites cost a total of $32.7 million, according to Crain’s. The properties were bought through LLCs in 2013 and 2015 before land prices reached their peak.  Schuster and the landowner also purchased about 8,200 square feet of air rights from neighboring properties, for an undisclosed sum.

Most of the apartments at development will be priced under $2.5 million, to keep in step with the waning luxury market. Silverback aims to secure a construction loan, then manage the design and development, as well as the sale of the units, according to Crain’s.

“We’re going to build the property so the layouts can be adjusted,” Schuster told the publication. “We’re not sure the larger units will come back, but we want to be flexible if that’s what is in demand at the time of delivery.”  [Crain’s]Miriam Hall