search

The Real Deal Logo

Trending

Tides’ original investors may be wiped out by preferred equity dealTides’ original investors may be wiped out by preferred equity dealLawmakers reach sweeping housing deal with “good cause eviction,” new 421aLawmakers reach sweeping housing deal with “good cause eviction,” new 421aTides Equities faces three foreclosures in Fort WorthTides Equities faces three foreclosures in Fort WorthHousing deal finally passes; here are the detailsHousing deal finally passes; here are the details
Development
New York

Tenants greenlight Related, Essence’s NYCHA teardown

Partners replacing West Chelsea public housing developments at $1.5B cost

From left: Related Companies CEO Jeff Blau, Essence Development founder Jamar Adams and Fulton Houses at 421 West 17th Street (Getty, Essence Development, Google Maps)

From left: Related Companies CEO Jeff Blau, Essence Development founder Jamar Adams and Fulton Houses at 421 West 17th Street (Getty, Essence Development, Google Maps)

Residents of two New York City Housing Authority developments are poised to get revamped homes, courtesy of Related Companies and Essence Development.

NYCHA will announce plans to move forward with a redevelopment plan for the Fulton Houses and Elliott-Chelsea Houses in West Chelsea, the New York Times reported. A survey of residents found more in favor of tearing down and redeveloping the properties, rather than simply rehabilitating them.

Tenant support for the demolition and rebuilding idea has been gaining steam for months. The plan has been gestating for some time, as the developers were attached to repairs at the properties more than a year ago.

Tenants in 2019 rejected a proposal to demolish at least two of the public housing buildings, choosing instead to have the developers renovate. But the price tag on those renovations has skyrocketed to the point where rebuilding no longer seems prohibitively expensive.

The developers will replace more than 2,000 public housing units. They will also construct retail and commercial space, as well as 3,500 mixed-income apartments; 1,000 of those will be put aside at affordable rates. The project is expected to cost $1.5 billion.

Sign Up for the undefined Newsletter

It’s a momentous development for NYCHA, which has only seen two prior teardowns in its 90-year history. This will also mark the first time mixed-income properties will be built on NYCHA land.

If this redevelopment proves successful, NYCHA and the city will likely look to replicate it across the city.

Read more

The developers plan to build the new properties before tearing down the old ones so that residents won’t need to be relocated during the lengthy construction process, which is expected to take six years.

The redevelopment still needs approval from the U.S. Department of Housing and Urban Development. The project will also need to go through ULURP, a process not expected to begin before next year.

— Holden Walter-Warner

Tags
ChelseaNYCHAPublic HousingRelated CompaniesWest Chelsea