Vornado looks to sell Rego Park development site for $85M

Project could qualify for Affordable New York before tax break expires next year

New York /
Jun.June 22, 2021 10:06 AM
Vornado's Steve Roth and a rendering of 93-30 93rd Street (Getty, JLL)

Vornado’s Steve Roth and a rendering of 93-30 93rd Street (Getty, JLL)

With the fate of New York’s housing construction tax break up in the air, one of the city’s largest investors is offering up a primed-and-ready development site in central Queens.

Vornado Realty Trust is looking to sell its 670,000-square-foot site at 93-30 93rd Street in Rego Park, with pricing expected around $85 million.

The property, which is best suited for development as a rental project with retail and community facility components, can be delivered vacant. That would give a buyer a head start on completing the site work necessary to lock in a 35-year tax abatement under the state’s Affordable New York program, which is set to expire June 15 of next year.

“We believe we’ll be able to make a deal in time that a developer will be able to qualify for Affordable New York,” said JLL’s Bob Knakal, who is marketing the property with a team led by himself and JLL’s Stephen Palmese.

A representative for Vornado declined to comment.

The development site is across the street from Vornado’s 960,000-square-foot Rego Center shopping mall. The REIT had long planned to develop the site, which is now a parking lot for the mall, and the surrounding area. In 2015, the company built the 312-unit Alexander apartment building across the street.

The site sits in an Opportunity Zone, and according to JLL’s marketing materials, demand for rentals is growing in Rego Park.

Market experts, meanwhile, are expecting to see a rush of land sales the remainder of this year so developers can get projects far enough along to qualify for the abatement, formerly known as 421a, before it expires next year. Progressive lawmakers have already put the controversial program in their crosshairs.





    Related Articles

    arrow_forward_ios
    All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
    All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
    All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
    Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)
    Free and clear: Vornado pays off debt at 220 CPS
    Free and clear: Vornado pays off debt at 220 CPS
    Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)
    “Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call
    “Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call
    FSA Capital’s Benjamin Clyburn and 133-09 37th Avenue in Flushing (Google Maps, Breaking Ground, Getty)
    Brian Pun’s FSA Capital plans 173K sf project in Flushing
    Brian Pun’s FSA Capital plans 173K sf project in Flushing
    State senator Michael Gianaris with 21-12 30th Road (NY Senate, Marner Architecture, Getty)
    Astoria redevelopment gets intergalactic
    Astoria redevelopment gets intergalactic
    (Getty)
    Zoning, infrastructure limits are squeezing US land supply
    Zoning, infrastructure limits are squeezing US land supply
    53 Sonrise Place in Fellsmere, FL and Starwood Capital Group chairman Barry Sternlicht (Google Maps, Illustration by The Real Deal with Getty)
    Starwood snaps up Florida affordable housing portfolio
    Starwood snaps up Florida affordable housing portfolio
    From left: Boston Mayor Michelle Wu and South Boston Senator Nick Collins with Boston City Hall
    Controversial transfer tax bill advances in Boston
    Controversial transfer tax bill advances in Boston
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...