Bigger plans for 3rd Avenue: 2 buildings, 17 stories and 184 apartments

Top two photos by William Klayer

Foundation work continues at the proposed residential development on Third Avenue between 10th Street and 11th Street, which is also growing considerably.

Developers Kinsmen Property Group and SK Development are now proposing two adjoining 17-story buildings with a combined 184 apartments at 50-64 Third Ave., according to Crain's New York Business.

That's a substantial change from the plans we reported in May, when SK Development filed for a 13-story building with 69 residential units and approximately 12,000 square feet of commercial space. 

The latest proposal calls for approximately 150,230 square feet of development, including 37 affordable apartments for households earning no more than 80% of the area median income. The two buildings would contain 99 and 85 apartments, respectively, with shared residential amenities including a fitness center, sauna, an all-important golf simulator, and common terraces. 

The project would also feature approximately 12,500 square feet of ground-floor retail space and no parking. 

Crain's reports that dividing the development into two buildings appears intended to avoid construction wage requirements under the city's 485-x tax incentive program, which apply to projects with 100 or more residential units. 

The developers are also seeking approval from the Department of City Planning to transfer 26,100 square feet of unused development rights from St. Mark's Church in-the-Bowery at 131 E. 10th St. 

As we reported in August, the Landmarks Preservation Commission approved the proposed transfer on July 21. The arrangement would fund maintenance of the landmarked church while allowing a larger development on Third Avenue. 

Meanwhile, financing is coming together. Commercial real estate firm Walker & Dunlop announced that it arranged $203.5 million in construction financing from private debt manager Ironsand for the project. 

The latest plans follow several years of changes along this stretch of Third Avenue. 

As we've documented, Kinsmen assembled the properties over several years, paying more than $60 million for the six walk-up buildings that once occupied the site. The last remaining commercial tenant, TLK by Tigerlily Kitchen at 58 Third Ave., closed in August 2024. 

Demolition followed that fall, with the buildings completely gone by January 2025. The lot remained largely inactive until construction preparations began this year. In September, a rendering finally appeared on the construction plywood, showing a tiered building with large windows and setbacks above ground-floor retail. 

That earlier proposal listed an anticipated completion date of January 2029. It's not clear how the expanded plans will affect the design or construction timeline. 

 One building that isn't part of the development is 48 Third Ave., the longtime holdout on the northwest corner of 10th Street, where Healthy Greens Gourmet occupies the ground-floor retail space.