Real estate investment and development firm Grun Group has submitted plans to the New York City Department of Buildings (DOB) to develop two residential towers, each with 99 units, in the Woodlawn Heights neighbourhood of the Bronx. This is according to available documents.
Should the projects be approved, the first of the two buildings would be located at 4241 Webster Avenue and would encompass an area of 59,611 square feet. This construction project is designed for eight storeys and 99 residential units. The second building is planned in the same neighbourhood at 4230 Peters Place, with an area of 68,733 square feet and also 99 units. Both properties currently serve as car parks.
Regional Development and Incentive Programmes
The building applications filed with the DOB do not contain any further information. A query from Commercial Observer to the Grun Group has so far remained unanswered. Construction activity in the Bronx has recently increased. For example, Catholic Homes, a subsidiary of the Roman Catholic Archdiocese of New York, recently secured USD 146.9 million in construction loan financing for the construction of affordable housing at 484 East 178th Street in the Bronx. At the same time, the city administration has concluded USD 214 million in financing for the realisation of 288 affordable housing units for seniors at 3728 Park Avenue. Housing developer Vilson Lumaj, for his part, plans two residential properties, each with 99 units, at 761-769 East Tremont Avenue.
Strategic Project Size and Tax Incentives
The Grun Group itself has recently been involved in several projects in the city. In June, the company submitted plans for a nine-storey residential building with 108 units at 116-18 Grosnevor Lane in Kew Gardens, Queens. In January, the firm filed an application for the construction of a 94-unit apartment building at 469 Troy Avenue in East Flatbush, Brooklyn.
Although unconfirmed, it is presumed that Grun opted for the construction of two buildings with 99 units each for its new project in Woodlawn Heights to take advantage of the city's 485-x tax abatement programme. Limiting the project size allows developers to claim the tax benefits of the 485-x programme without having to pay the high construction worker wages mandated for projects with 100 or more units.
