The Real Deal New York

Izaki Group is doubling the size of its Yorkville condo project

With additional parcels, project can be almost twice as large as initial plan
By Kevin Sun | March 08, 2019 04:30PM

306-320 East 86th Street and IGI-US CEO Eldad Blaustein (Credit: Google Maps and Core NYC)

Just weeks after the opening of the Second Avenue Subway in 2017, Izaki Group Investments made a move along its route by acquiring three adjacent apartment buildings from Extell. Now, the company is moving forward with a project that could be almost twice as large as previously reported.

IGI-US, the US branch of the Israeli development company, filed plans on Friday for a 20-story, 68-unit condo building at 310 East 86th Street, steps away from the 86th Street station of the rerouted Q line. The project will include five adjacent lots, from 306 through 314, as well as air rights from 320 East 86th Street, according to the filing.

IGI acquired the walkups at 310-314 East 86th Street from Extell in March 2017 for $42 million, as Gary Barnett’s company was seeking to sell off some of its smaller development sites in order to focus on its larger projects. That purchase was financed with a $26.8 million acquisition loan from Bank Leumi.

At the time, IGI was reported to be planning a roughly 80,000-square foot condo tower on the site, with just two condo units per floor. The plans filed on Friday envision a nearly 150,000-square foot structure, with three or four apartments on most floors.

The building is being designed by Eran Chen’s ODA Architecture.

The enlarged plans were made possible by further IGI buys along the street. In January 2018, IGI acquired the apartment building at 308 East 86th Street for $12.5 million. The next building down, 306 East 86th Street, has not been acquired by IGI, but demolition plans were filed for the property last September.

Representatives for IGI did not respond to a request for comment.

The Yorkville area has seen continued interest from developers since the opening of the Second Avenue Subway. On the very same block, Extell is planning to construct its own 20-story condominium tower at 350 East 86th Street, anchored by a former Gristedes supermarket.