The land market was one of New York City’s weaker real estate segments in 2021. The five largest deals for development parcels last year fetched nearly $435 million altogether, a slight increase from pandemic-stricken 2020 but still a 27 percent decrease from 2019’s $597 million.
As in previous years, proposed residential developments once again dominated the list, but one deal for a warehouse development in Brooklyn — a possible sign of the times as the logistics sector continues to enjoy voracious demand.
Below are the five most expensive development sites sold in New York City last year:
1. 318 Nevins Street | $102M
Buyer: Tavros Capital and Charney Companies
Seller: Property Markets Group
With the Gowanus rezoning finally approved, Tavros Capital and Charney Companies bought this full-block site at 318 Nevins Street along the Gowanus Canal from Property Markets Group for $102 million.
Tavros, founded by partners Dov Barnett and Nicholas Silvers, and Sam Charney’s Charney Companies plan to build approximately 660 rental apartments on the property, which has more than 500,000 square feet of buildable space.
The property at 318 Nevins Street sits in an Opportunity Zone between Union and Carroll streets on the eastern side of the canal. The project will use the addresses 320 Nevins Street and 340 Nevins Street.
2. 111 Washington Street | $89.2M
Buyer: Grubb Properties
Seller: Pink Stone Capital
This September sale ended a long-running family feud over a prized Financial District development site.
Pink Stone Capital founder Richard Ohebshalom sued his father, developer Fred Ohebshalom, in 2017 to try to block the sale of the site, which can accomodate a 50-story tower with 400 residential units.
Richard ultimately bought his father out of the property and put it back on the market in 2020. North Carolina-based Grubb Properties picked it up and plans to develop the parcel with an address of 8 Carlisle. Pink Stone will stay on as a partner.
3. 2-33 50th Avenue | $88.5M
Buyer: Vorea Group, Domain Companies and L+M Development Partners
Seller: Fortress Corporation
A trio of developers plans to build a 12-story, 500-unit residential property on this Long Island City site, which they closed on in September.
Vorea Group, Domain Companies and L+M Development partners picked up the property from self-storage company Fortress Corporation, which had owned the land since 1996.
The 76,000-square-foot property, which sits in an opportunity zone, allows for up to 420,000 square feet of residential space.
4. 280 Richards Street | $78M
Buyer: Unknown
Seller: Thor Equities
Joe Sitt’s Thor Equities sold a stake in its Amazon-anchored warehouse development in Red Hook to a “foreign entity” as part of a larger recapitalization.
Thor plans to build a state-of-the-art distribution center with more than 300,000 square feet of space, which is pre-leased to Amazon for 20 years.
Sitt’s firm had originally planned to develop an office property on the site, but changed direction in 2019 and decided on industrial use. As part of the recapitalization, the developer landed a $76 million construction loan for the project.
5. 506 West 36th Street | $77M
Buyer: Related Companies
Seller: Spitzer Enterprises
Eliot Spitzer sold all but a 0.1 percent interest in a trio of Hudson Yards parcels to Stephen Ross’ Related Companies. A joint venture between Related and Spitzer Enterprises is developing a large residential project nearby.
The deal left Related with a 99.9 percent interest in 506 and 512 West 36th Street and 511 West 35th Street, which Spitzer bought in 2013 for $88 million.
Related and Spitzer are teaming up with Atria Senior Living and Welltower to build a residential tower at 410 10th Avenue with 526 units, about a quarter of which will be reserved for seniors.