Tuesday, February 5, 2019

A look at the development coming to 14th and C, now the subject of a lawsuit

[Photo from Saturday]

Last week, the Commercial Observer reported that Second Avenue Deli owner Jeremy Lebewohl filed a $10 million lawsuit alleging that his five-story residential building at 642 E. 14th St. sustained damages by the construction of the neighboring development.

Per the Observer:

Lebewohl claims in the Manhattan Supreme Court suit that Opal Holdings’ work on its 15-story mixed-use project still under development at 644 East 14th Street cracked the interior and exterior walls of Lebewohl’s 642 East 14th Street and caused metal doors inside to be inoperable.

The legal issues commenced when Opal began excavating and installing the foundation for its development, according to the suit filed on Jan. 22 [2019]. Opal tried to cut costs by driving the piles for the foundation too close to Lebewohl’s long-held residential building which damaged the wall and ceilings, the suit claims.

[Photo from Saturday]

[Photo from Saturday]

As previously reported (see the links at the bottom of this post), Opal Holdings picked up the parcel from the Rabsky Group in the summer of 2016 for $23 million. There are plans for a residential building with space for a health-care facility.

[The most recent rendering of the development]

There hasn't been much, if any, progress at this southwest corner of 14th Street and Avenue C. (There aren't any active Stop Order Orders on the project, per city records.) My last post on the site came in September 2017. At that time, crews were still working on the foundation. I walk by this corner several times a week, and I haven't seen any activity in more than a year.

Perhaps workers were combatting the elevated groundwater levels here that have impacted the other developments (here and here) along East 14th Street.

As for the new development, here's a rehash of the info I received on the project in September 2016:

Madison Realty Capital (MRC), an institutionally-backed real estate investment firm focused on real estate equity and debt investments in the middle markets, provided a $52.0 million first mortgage loan for the acquisition of a development site in the East Village and construction of an approved 76,259 square foot mixed use development on the site.

The plans for 644 East 14th Street include 50 residential units, 8,064 square feet of retail space with 200 feet of frontage on 14th Street and Avenue C, and 21,575 square feet of community facility space.

The property is located at the corner of 14th Street and Avenue C, along the Northern border of the East Village and directly across the street from Stuyvesant Town. Residential units will offer contemporary finishes and large balconies with East River views. The borrower is currently finalizing a lease with a major New York hospital to occupy the entire community facility portion of the new building.

This corner property next to Campos Plaza and across from the Con Ed plant previously housed the single-level R&S Strauss auto parts store, which closed in April 2009.

These two photos are from the fall of 2017...

Previously on EV Grieve:
Development back in play for East 14th Street and Avenue C

More details on the sale of 644 E. 14th St.

Here comes a 15-story retail-residential complex for East 14th Street and Avenue C

Prepping the former R&S Strauss auto parts store for demolition on East 14th Street and Avenue C

City OKs 15-story mixed-use retail-residential building on 14th and C

14th and C now waiting for the Karl Fischer-designed 15-story retail-residential complex

14th and C still waiting for its Karl Fischer-designed retail-residential complex

Report: New owners for the empty lot at 14th Street and Avenue C


Anonymous said...

Now it's up to 15 stories???

Anonymous said...

The developer is going up against the owner of the Second Avenue Deli? My bet is on Mr. Lebewohl, who I'd imagine has enough money to fight the developer for a long time.

chris flash said...

NONE of this would happen if the city refused to modify zoning restrictions, allowing the developer to go as high as they please. If the existing zoning had remained intact, we'd still have an auto parts store at that corner, or, at worst, a row of low-density five story buildings in line with other buildings along that side of 14th Street.

But nooooooooo........

Anonymous said...

Madison Realty capital... Gregg singer's backers

Anonymous said...

Capalino the lobbyist involved $5,000 a month...