New residential space is being created in Manhattan's East Village: Kinsmen Property Group and SK Development have finalised plans for the construction of a multi-family building at 50 Third Avenue. The joint venture intends to realise a total of 184 rental flats and ground-floor retail space at the corner of Third Avenue and East 11th Street. This is according to an application submitted to the city's Department of City Planning last week.
Approximately 20 percent of the flats, or 37 units, are designated as permanently affordable housing. For the development project, Kinsmen and SK Development secured USD 203.5 million in construction financing on Monday. The loan was brokered by Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, Dustin Stolly, Sean Reimer and Sean Bastian of Walker & Dunlop, who arranged a variable, interest-only loan via Ironsand for the joint venture.
Attractive Market Conditions and Planned Division
Aaron Appel commented in a statement: The East Village combines an extraordinarily limited supply of new flats with sustained tenant demand. This creates compelling conditions for a project of this calibre. The vacancy rate in the district remains low, while proximity to key employment centres and the area's attractiveness to young professionals and high-income tenants support demand.
The development is currently divided into two buildings on separate tax lots, but is to function as a 'unified structure' with a shared lobby and approximately 17 storeys. The south building will comprise 99 residential units and 5,967 square feet of retail space, while the north building will offer 85 units and 3,812 square feet of retail.
Amenities and Permitting Procedures
Planned amenities include a fitness centre, a yoga studio, a sauna, a cold plunge pool, a golf simulator and co-working spaces. Kinsmen and SK Development submitted an application to the Landmarks Preservation Commission last week. This concerns zoning amendments and a transfer of air rights from the nearby St. Mark’s Church in-the-Bowery.
Such a transfer is necessary for the construction of the project as two separate buildings and to avail of the city's 485-x tax abatement. The transfer would grant the developers approximately 26,100 square feet of unused air rights from the church property. Proceeds from the project would be used to finance the restoration and maintenance of the church.
The development plans affect a 17-storey mixed-use building at 48-64 Third Avenue, the church property at 165 Second Avenue, and a five-storey residential building at 66 Third Avenue. Should the Landmarks Preservation Commission not approve the plans for a two-building project, the developers are pursuing an alternative plan that provides for the construction of a single market-rate building with a total of 184 units.
