Developers are trying to figure out the math for a site on Atlantic Avenue.
Bermuda Realty LLC, an entity tied to the Bawabeh family, plans to build 300 homes at 1720 Atlantic Avenue in Brooklyn.
The site, which currently operates as a one-story shopping center, is outside the Atlantic Avenue rezoning area, a 21-block plan expected to create 4,600 homes. The city council approved the rezoning in May.
City Councilman Chi Ossé supported that rezoning, but said he had concerns about the 300-unit project to the east.
“I am and always will be a pro-housing council member, but I want to highlight the urgent need for more affordable housing, both in my district and across the city,” he said during a hearing Thursday. “I worry that this particular proposal will contribute to displacement pressures in this part of Central Brooklyn.”
As the plan currently stands, 84 apartments will be permanently affordable for those earning an average of 60 percent of the region’s median income. The city’s Yes for Housing Opportunity allowed the developers to slightly increase the size of their project and add 14 affordable units than previously planned.
The back-and-forth between the developer and the council member on Thursday provided some insight into the challenges of satisfying competing visions for a project. It also showed that while several city councilors have endorsed the belief that ramping up housing construction is key to tackling the city’s housing crisis, the demand for 100 percent affordability has not gone away.
Representatives for the developer indicated they will look at eliminating a community facility, reducing parking spaces and adjusting unit sizes as a way to increase affordability. Brian Cook, an attorney with Brown Weinraub, noted that while parking is required, community members want the project to add parking spaces to the 50 spaces already available at the mall.
Ossé asked if the developers could provide projections on how eliminating or reducing the planned 116 parking spaces could increase the number of income-restricted units and deepen affordability. He said increasing the project’s affordability was a priority, and the proximity to public transportation should allow shoppers to travel to and from the project, even with shopping bags in tow.
He then asked a question often feared by developers: Had they instead considered working with the Department of Housing Preservation and Development to build a 100 percent affordable housing project?
Cook indicated that the Bawabehs have specialized in retail properties in Brooklyn, and that making the project 100 percent affordable would likely require more staff or another partner with expertise in managing such properties. He also noted that the project has more than 99 units, meaning the developers will pay construction workers a minimum hourly rate for wages and benefits as a condition of receiving a 485x property tax credit.
Additionally, he said it would be prohibitively expensive to continue pouring money into the site while waiting, likely years, for possible city subsidies.
Ossé was not convinced by these arguments.
“I don’t think this is a plausible excuse, that it will take work and time to work with HPD and nonprofit developers to build a 100 percent affordable site,” he said.
Still, Cook indicated that the developers wanted to see if other locations in the area could be suitable for a 100 percent affordable project.
And that’s about where the conversation left off. The most likely scenario seems to be an increase in the number of affordable units if the developer reduces the number of parking spaces and implements some of the other changes the team highlighted Thursday, but we’ll see where the project ends up.
What we think about: Given the design controversy, what lessons should other condo developers learn from 432 Park Avenue? Are there any other buildings we should look at? Send a message to kathryn@therealdeal.com.
Something we learned: Kelsey Grammer was only 38 when he appeared as the titular character in season one of the television show “Frasier,” which debuted in 1993. Learn this completely ruined my day.
Elsewhere in New York…
— During the last mayoral debate, former Gov. Andrew Cuomo was the only candidate to say he would accept Mayor Eric Adams’ endorsement. A day later, the mayor confirmed that he supports Cuomo and plans to campaign with him in neighborhoods where he is popular. reports the New York Times.
— A construction worker fell to his death Thursday while working at a Manhattan site related to the Gateway tunnel project. Gothamist reports. Officials say the worker, who has not been named, fell 60 feet from a foundation wall being poured on Wednesday and had to be lifted from a huge pit on the site. His death is under investigation.
— ICYMI, here’s a summary of the real estate-related issues that came up during the last mayoral debate.
Closing time
Residential: The highest housing deal recorded on Thursday was $9.75 million for a 2,101-square-foot sponsorship condominium at 20 East 76th Street on the Upper East Side. Lauren Muss and Michelle Griffith with Douglas Elliman had the mention.
Commercial: The best recorded commercial deal was $62.6 million for a collection of buildings at 150-154 East 79th Street and 1131-1135 Lexington Avenue on the Upper East Side. Combined, the five buildings have an area of 18,500 square meters.
New on the market: The highest price for a home that came on the market was $35.6 million for a 10,160-square-foot single-family home at 436 West 20th Street in Chelsea. Ryan Serhant, Nicole Palermo and Chris Gillis with Serhant are credited.
Groundbreaking: The largest new building permit filed was for a proposed 27,206-square-foot, 26-story, 347-unit residential building at 310 East 161st Street in Concourse. Ariel Aufgang submitted the permit on behalf of Dimitrios Katehis of Gilbane Development.
— Matthew Elo
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