A remodeling project is already underway for the newly rezoned Midtown South — something city leaders weren’t expecting.
Earlier this week, developers Marty Burger and Andrew Heiberger announced the $25 million purchase of 29 West 35th Street and their plans to turn the outdated office into more than 100 studio apartments.
News of the project, the first to take shape in the neighborhood, comes less than two months after the City Council approved the measure, and it stands in stark contrast to the building’s fate a year ago, when no one bid on it when it was auctioned for just $270 a foot.
Although it will boost development in the area, the building was not actually among the roughly sixty locations that the Ministry of Urban Planning identified as ripe for conversion. The city actually listed a parking garage next to the building as one of the likely locations rather than the building itself.
The rezoning is expected to create 9,500 homes, according to the city’s estimates — a conservative number that doesn’t include all of the sites in the area that developers could turn into apartments.
Heiberger said he and Burger had been eyeing the rezoning prior to the deal, although they signed the contract about four months before it reached the finish line.
“There wasn’t really much risk that this wouldn’t be approved, especially in the wake of City of Yes,” Heiberger said. “It was actually approved three months earlier than we expected.”
When asked if he and Burger were concerned about last-minute carveouts hitting the site, Heiberger said, “No, we weren’t concerned at all.”
“It’s not a landmark, and it wasn’t in the area they wanted to keep as the Garment District,” he said. “We underwrote it based on the potential to convert without expecting air rights, so the air rights turned out to be a bonus.”
What we think about: The government officially shut down ten days ago and the country is starting to feel the impact. A shortage of air traffic control personnel has caused delays at several major airports, including Newark Liberty International Airport. The Trump administration has also started laying off federal workers.
But as the shutdown continues, its effect on the industry remains unclear. Is uncertainty holding back deals? Do buyers and sellers ask questions? Send your thoughts to sheridan.wall@therealdeal.com.
Something we learned: A former outfielder for the Boston Red Sox, Mike Greenwell, died of cancer on Thursday at the age of 62. Last year, Greenwell won re-election to his seat on the Lee County Board of Commissioners, which he was appointed to in 2022 by Florida Governor Ron DeSantis. During his tenure, the board rezoned 76 hectares of his land for development, despite opposition from local residents.
Elsewhere in New York…
– A four-alarm fire ripped through a commercial building on Long Island Thursday evening, drawing about 200 firefighters to the site in Hicksville, NBC New York reported. The fire likely started in a restaurant in the building’s basement and spread from there, damaging adjacent businesses, including a donut shop.
– A potential nor’easter is heading for the East Coast, and cities in three states along the coast are expected to start feeling its impact on Sunday, CBS News reported. These provinces have issued coastal flooding warnings for Sunday and Monday. New York Harbor will be under a storm watch on the same days as wind speeds could reach up to 50 miles per hour.
Closing time
Residential: The highest residential deal recorded on Friday was $5.7 million for a triplex townhome at 230 Bergen Street. The Boerum Hill residence is 4,400 square feet and last sold on the market in 2013 for $2.8 million. Compass Tamara + Noah Team has the listing.
Commercial: The best recorded commercial deal was $572.3 million for 1177 Avenue of the Americas. Silverstein Properties and the California State Teachers’ Retirement System sold the 1 million-square-foot, 47-story building to the joint venture Norges Bank Investment Management and Beacon Capital Partners, per reports.
New on the market: The highest price for a home to hit the market was $45.5 million for 125 East 65th Street. The Lenox Hill mansion is 14,300 square feet. Serhants Melissa Post and Ryan Serhant have the entry.
Groundbreaking: The largest new building permit filed was for a proposed nine-story residential building at 3848 Bailey Avenue in the Bronx. Jakov Saric from Node Architecture, Engineering, Construction PC is the registered applicant.
— Joseph Jungerman
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