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South Bronx piano warehouse hits the market

A 140-year-old piano factory in the South Bronx has hit the market for $11.5 million.

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Developer Digest

Rising Mortgage Rates Could Take 20% Bite Out of Home Prices

A report from the Federal Reserve Bank of Dallas is adding to the chorus of those predicting a big downturn in home prices. Home prices in the country could fall 15 to 20 percent in a “pessimistic” scenario. If that correction happens, it could remove 0.5 to 0.7 percentage points from consumer spending. Mortgage rates have jumped from about 3 percent to 7 percent this year as the Federal Reserve announced interest rate hikes in an attempt to clamp down on inflation. The Fed has raised interest rates by 3.75 percent since March.

Source: The Real Deal

Mayor Adams Unveils Vision for Willets Point Transformation, Generational 100 Percent Affordable Housing Project, Privately Financed Soccer Stadium

New York City Mayor Eric Adams unveiled his administration’s vision for the next phase of the transformation of the Willets Point community in Queens. Through a new partnership with 2021 Major League Soccer (MLS) Cup champions New York City Football Club (NYCFC) and Queens Development Group (QDG) — a joint venture of Related Companies and Sterling Equities — Willets Point will be anchored by 2,500 new affordable homes, the largest 100-percent affordable, new construction housing project in New York City in 40 years, which will be constructed on an accelerated timeline.

Source: NYC.gov

Naftali Lands $385 Million Loan for Major Brooklyn Project

The Naftali Group has received a big vote of confidence in its effort to develop the last major piece of northern Brooklyn’s waterfront, even as the residential market has cooled. The luxury developer has scored $385 million in construction financing for 470 Kent Ave., a three-tower residential project to rise on the site of a former lumber warehouse on the East River in Williamsburg. Plans for the site, which is at Division Avenue, include towers of up to 22 stories that have a total of 561 apartments. One of the towers will feature 90 condos, while the other two will contain rental units.

Source: CRAIN'S New York Business

How Will Hochul Respond to N.Y.’s Housing Crisis?

While running for reelection, Gov. Kathy Hochul pledged to jumpstart the construction of 500,000 to 1 million new homes to deal with a housing crisis that stretches from New York City to the suburbs, and even upstate. But first, in the two months before she’ll lay out her priorities in her State of the State speech and budget plan, she will have to choose from a dizzying list of proposals from Mayor Eric Adams, real estate interests, tenant groups and others. They seek tax breaks, new subsidy programs, changes to override local zoning rules and more.

Source: The City

Alloy Development’s First All-Electric Tower in Downtown Brooklyn Seeks 100 Percent Local Renewable Energy

Alloy Development (Alloy) announced plans to power the city’s first electric residential tower with 100 percent renewable energy. The Brooklyn-based firm recently issued a Request for Proposals (RFP) that seeks to partner with a community solar developer to enroll 100 Flatbush, the mixed-use tower now rising in Downtown Brooklyn, in community solar projects that will secure a 100 percent renewable energy supply for the building. The 44-story project is part of the first phase of the Alloy Block, a mixed-use development that will comprise five old and new buildings and will provide residential, office, cultural and retail space, as well as the city’s first two public schools designed to meet Passive House compliance.

Source: REW Online

Bushwick Council Member Issues Requirements For Developers Pitching Rezonings

Jennifer Gutiérrez, the New York City Council member for a stretch of Brooklyn that has gentrified rapidly over the past decade, has laid down new guidelines for developers hoping to pitch projects in her district. Gutiérrez says that proposed developments for District 34, which spans Bushwick, Williamsburg and parts of Ridgewood, should not result in the loss of rent-stabilized or income-restricted units. Projects should maximize “deeply affordable housing at 50% [of area median income] and below in order to create opportunities for those with the greatest need, who have been increasingly displaced in District 34,” the guidelines read.

Source: BISNOW

Fed’s Aggressive Rate Hikes Are a Game Changer

As the Federal Reserve raises interest rates to cool the economy and slow inflation, it is contending with the imprecise and inconsistent effect of monetary policy on the economy. The Nobel Prize-winning economist Milton Friedman famously argued that “monetary actions affect economic conditions only after a lag that is both long and variable.” Since it can take years before the full effects of tightening become apparent, the Fed tends to move incrementally, adjusting policy gradually while scrutinizing economic data for signs of its effects.

Source: WSJ

Thor Launches $3B “Underdog” Brooklyn Casino Bid

Joseph Sitt is the latest developer to push all of his chips into the pot for a New York City casino. His Thor Equities is proposing a $3 billion casino in Brooklyn’s Coney Island, the New York Times first reported. The developer announced the bid in partnership with Saratoga Casino Holdings and the Chickasaw Nation. The gambling venue is the crux of his proposal for one of New York City’s three casino operating licenses, but is only part of Sitt’s vision for a hotel and entertainment complex for Coney Island with a roller coaster, an indoor water park, hotels and museums.

Source: The Real Deal

NYC Comptroller Outlines Framework for Comprehensive Property Tax Reform

Lander proposes bringing together long overdue reform for overtaxed homeowners with changes to multifamily taxation in the wake of the expiration of 421-a. Framework would bring fairness and transparency, incentivize new rental housing production, tie tax breaks to actual affordability, and include a 21st century Mitchell-Lama program for Permanently Affordable Cooperative Homeownership.

Source: NYC Comptroller

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