The Real Deal New York

No 421a? Williamsburg developer foots tax bill anyway

Credits for buyers range from $23K to $80K for up to 2.5 years
March 02, 2018 01:00PM

62-66 North Third Street

The developers of a Williamsburg condominium are offering to pay up to $80,000 in taxes for buyers who go into contract by the end of the month.

The building in question, 62-66 North Third Street, does not benefit from 421a abatement like other large projects on the Brooklyn waterfront. To entice buyers, the sponsors decided to offer an abatement of their own and will pay up to 2.5 years of property taxes on units that go into contract this month, Bloomberg reported. The payments will range from $23,000 for a one bedroom to $80,000 for penthouse.

“People say, ‘I won’t go into anything without a concession,'” said David Dwek of Duke Equities, which is developing the project with Flatiron Real Estate Advisors and MJM Contracting.”It’s a checklist item.”

Thousands of Brooklyn condo buyers have reaped the rewards of tax abatement programs like 421a, which gave developers (and buyers) tax breaks for up to 25 years. The replacement program, passed last year, is more restrictive.

So far, two of the building’s 13 units are in contract, according to StreetEasy. Available units include a one-bedroom seeking $1.4 million and a three-bedroom asking $3.075 million. The average price per foot is $1,520, on the high end for Williamsburg, where last year’s median price per foot was $1,204. [Bloomberg]E.B. Solomont