Friday, July 8, 2022
Unarrested development: activity at the long-stalled corner of St. Mark's Place and 3rd Avenue
Monday, June 13, 2022
Report: Office building for 3rd Avenue and St. Mark's Place moving forward after developer secures $70-million loan
As of 2019, REEC was shooting for top-dollar rents at the boutique office building, planning to ask for around $150 per square foot. It's not clear what the developer will be seeking when the project finally comes to fruition. The office market has been decimated in the wake of the pandemic. A recent analysis predicted that by 2029, the city's office stock will drop in value by 28 percent, or roughly $49 billion, due to lease revenue falling and remote work rising further.
Madison has owned the $48 million loan package backed by REEC's East Village property since 2019. The real-estate private equity firm acquired the debt from South Korean financial services firm Hana Financial group, which provided REEC $79.1 million of debt and sold the $48 million portion to Madison Realty Capital.
Madison filed a complaint with the state Supreme Court in Manhattan, alleging that REEC defaulted on the $48 million mortgage, which combines an acquisition loan and construction loans.
In any event, expect work to ramp up again after months of inactivity. Last October, workers removed the barriers around the work site... allowing pedestrians to use the sidewalks again — for the first time since the barricades arrived in June 2020.
A smaller building, and stacks of wheatpaste ads
Thursday, January 6, 2022
2022 corner watch: St. Mark's Place and 3rd Avenue
Madison has owned the $48 million loan package backed by REEC's East Village property since 2019. The real-estate private equity firm acquired the debt from South Korean financial services firm Hana Financial group, which provided REEC $79.1 million of debt and sold the $48 million portion to Madison Realty Capital.
Madison filed a complaint with the state Supreme Court in Manhattan, alleging that REEC defaulted on the $48 million mortgage, which combines an acquisition loan and construction loans.
Tuesday, October 19, 2021
Office building for 3 St. Mark's Place appears stalled for now
Madison has owned the $48 million loan package backed by REEC's East Village property since 2019. The real-estate private equity firm acquired the debt from South Korean financial services firm Hana Financial group, which provided REEC $79.1 million of debt and sold the $48 million portion to Madison Realty Capital.
Madison filed a complaint with the state Supreme Court in Manhattan, alleging that REEC defaulted on the $48 million mortgage, which combines an acquisition loan and construction loans.
It's not known where REEC is with this plan.
According to the Department of Buildings, there's a Stop Work Order "due to contractor withdrawal" dated Sept. 27.
As you may recall, a 10-story office building had been in the works here.
In October 2020, the City Council's Zoning Subcommittee voted down REEC's application to transfer air rights from the landmarked 4 St. Marks Place to the new building across the street.
Wednesday, October 6, 2021
Sidewalk usage available again on the NE corner of 3rd Avenue and St. Mark's Place
Tuesday, August 31, 2021
A live look at the pedestrian passageway outside 3 St. Mark's Place
Wednesday, August 18, 2021
The expanding and shrinking pedestrian passage on St. Mark's Place at 3rd Avenue
Tuesday, August 17, 2021
Report: Madison Realty Capital moving to foreclose on leasehold for 3 St. Mark's Place
Madison has owned the $48 million loan package backed by REEC's East Village property since 2019. The real-estate private equity firm acquired the debt from South Korean financial services firm Hana Financial group, which provided REEC $79.1 million of debt and sold the $48 million portion to Madison Realty Capital.
Madison filed a complaint with the state Supreme Court in Manhattan, alleging that REEC defaulted on the $48 million mortgage, which combines an acquisition loan and construction loans.
An REEC spokesperson said that they "are working on a recapitalization plan and are optimistic that this will be resolved in the near future."
This is the latest drama for the high-profile corner. As previously reported, a 10-story office building has been in the works here at 3 St. Mark's Place at Third Avenue.
REEC picked up the 99-year leasehold for the corner properties for nearly $150 million in November 2017. The Gabay family had owned the buildings for generations.
Tuesday, June 29, 2021
The ridiculously narrow pedestrian passage at the NE corner of St. Mark's Place and 3rd Avenue
The barricades by this construction site keep getting narrower and narrower. I'd say it’s in the range of less than a foot wide now. Totally nuts with how many people get stuck in there trying to pass each other. It seems like a safety hazard. I have reported this twice to 311, and it was briefly fixed but is now worse than ever.
REEC picked up the 99-year leasehold for the properties here for nearly $150 million in November 2017.
• New building plans revealed for 3rd Avenue and St. Mark's Place
Wednesday, July 1, 2020
Noted
On Monday, we noted the rather vague schematic that arrived on the plywood where a 10-story office building will rise on the northwest corner of Third Avenue and St. Mark's Place.
Good news: Some additions have now been revealed... giving it a little more of a St. Mark's Place look...
Monday, June 29, 2020
Completion date for new office building at 3 St. Mark's Place is February 2022
As we've been reporting in recents weeks, work has commenced on the northeast corner of Third Avenue and St. Mark's Place, site of a future 10-story office building.
New on the plywood: A vague schematic of the future structure...
The signage also offers a piece of news: the completion is listed as February 2022.
And for a more detailed view of the all-new 3 St. Mark's Place ... as seen in this before and after...
The total square footage of the building has yet to be determined. Cutting and pasting from before:
The City Planning Commission will cast their vote at a later date as part of the city’s Uniform Land Use Review Procedure. They are expected to approve the plan to transfer air rights from the landmarked 4 St. Mark's Place to the new development across the street at 3 St. Mark's Place. In issues such as this, City Council usually follows the lead of the local Councilmember. (Carlina Rivera spoke out against the transfer plan in in early March.)
With the air-rights transfer, developer Real Estate Equities Corporation (REEC) would be allowed to build 8,386 square feet larger than the current zoning allows.
Regardless of an extra 8,000 square feet, construction will still happen. As Gothamist reported in early March, the project's architect, Morris Adjmi, emphasized a building of a similar height size would be built as-of-right.
REEC picked up the 99-year leasehold for the properties here for nearly $150 million in November 2017.
Previously on EV Grieve:
• New building plans revealed for 3rd Avenue and St. Mark's Place
• Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue
Monday, June 22, 2020
St. Mark's Place at 3rd Avenue promises to be a hot construction mess for the next few years
Since our last look, workers have expanded the construction perimeter around the northeast corner of Third Avenue and St. Mark's Place... the unofficial entry from the west into the East Village.
The sidewalk on Third Avenue was previously blocked off... now the same goes for the St. Mark's Place side... with the sidewalk now part of a barricaded street with a narrower roadway for the M8 bus (and every other vehicle) that uses this route...
Still no activity on the actual lot where the 10-story office building will eventually rise, per a view into the blogger portals...
The City Planning Commission will cast their vote at a later date as part of the city’s Uniform Land Use Review Procedure. They are expected to approve the plan to transfer air rights from the landmarked 4 St. Mark's Place to the new development across the street at 3 St. Mark's Place. In issues such as this, City Council usually follows the lead of the local Councilmember. (Carlina Rivera spoke out against the transfer plan in in early March.)
With the air-rights transfer, developer Real Estate Equities Corporation (REEC) would be allowed to build 8,386 square feet larger than the current zoning allows.
Regardless of an extra 8,000 square feet, construction will still happen. As Gothamist reported in early March, the project's architect, Morris Adjmi, emphasized a building of a similar height size would be built as-of-right.
[A rendering of 3 St. Mark's Place]
REEC picked up the 99-year leasehold for the properties here for nearly $150 million in November 2017. The corner lot is owned by the Gabay family.
Previously on EV Grieve:
• Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place
• End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place
• New building plans revealed for 3rd Avenue and St. Mark's Place
• Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue
Monday, June 15, 2020
More prep work for incoming St. Mark's Place office building
With Phase 1 underway and non-essential construction sites firing up again, there's activity to note on the northeast corner of Third Avenue and St. Mark's Place.
You may have noticed that workers have now blocked the sidewalk with a second level of plywood in front of where the 10-floor boutique office building will rise ...
However, as you can see through the blogger portal on the plywood, there's nothing going on inside the lot (yet).
And it has remained this way during the COVID-19 crisis.
[A rendering of 3 St. Mark's Place]
Where we left off on March 5: Local City Councilmember Carlina Rivera had joined the chorus of opposition to the air-rights transfer for the new building. Rivera, who holds the key vote when the proposal comes before City Council, had previously expressed concerns about the project, but hadn't gone as far as officially opposing it.
During the City Planning Commission hearing on March 4, Rivera submitted joint testimony with Assemblymember Deborah Glick and State Sen. Brad Hoylman.
The City Planning Commission will cast their vote at a later date as part of the city’s Uniform Land Use Review Procedure. They are expected to approve the plan to transfer air rights from the landmarked 4 St. Mark's Place to the new development across the street at 3 St. Mark's Place. In issues such as this, City Council usually follows the lead of the local Councilmember.
With the air-rights transfer, developer Real Estate Equities Corporation (REEC) would be allowed to build 8,386 square feet larger than the current zoning allows.
Regardless of an extra 8,000 square feet, the construction will eventually continue. As Gothamist reported in early March, the project's architect, Morris Adjmi, emphasized a building of a similar height size could be built as-of-right.
REEC picked up the 99-year leasehold for the properties here for nearly $150 million in November 2017. The corner lot is owned by the Gabay family.
Previously on EV Grieve:
• Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place
• End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place
• New building plans revealed for 3rd Avenue and St. Mark's Place
• Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue
Thursday, March 5, 2020
Carlina Rivera states her opposition over plan to transfer air rights for new St. Mark's Place office building
[A rendering of 3 St. Mark's Place]
Local City Councilmember Carlina Rivera yesterday joined the chorus of opposition to the air-rights transfer for the new office building planned for the northeast corner of St. Mark's Place and Third Avenue.
To date, Rivera, who holds the key vote when the proposal comes before City Council, had previously expressed concerns about the project, but hadn't gone as far as officially opposing it.
During yesterday's City Planning Commission hearing, Rivera submitted joint testimony with Assemblymember Deborah Glick and State Sen. Brad Hoylman, which read in part:
"This development would clearly be out of context with the landmarked 4 St. Mark’s Place, as well as the surrounding street scape and character. It's clear that the developers, in the wake of numerous concerns raised by neighborhood groups, Community Board 3, several members of the Landmarks Preservation Commission, and elected officials, have not proposed or addressed any serious 'appropriate conditions and safeguards' that the 74-79 permit states should be considered in order to 'minimize adverse effects on the character of the surrounding area."
St. Mark's Place is the gateway to the East Village - a globally recognized center of music, art and culture. This project fell short of the community's expectations and the neighborhood it leads to.
— Carlina Rivera 利華娜 (@CarlinaRivera) March 4, 2020
That’s why I urged the City Planning Commission to reject it. https://t.co/iZjps2UZ5Z
The City Planning Commission will cast their vote at a later date as part of the city’s Uniform Land Use Review Procedure. They are expected to approve the plan to transfer air rights from 4 St. Mark's Place to the new development across the street at 3 St. Mark's Place. In issues such as this, City Council usually follows the lead of the local Councilmember.
Andrew Berman, executive director of the Village Preservation, has long been opposed to this plan. He said that he was pleased by Rivera's decision.
"We are hopeful that her statement ... will be followed by a no vote in the Council and a call to her colleagues to do the same," Berman said in an email. "We have said from the beginning that this proposal to increase the size of the planned tech office tower at the 'gateway to the East Village' is wrong, and would only serve to accelerate the spread of Midtown South and Silicon Alley to this neighborhood."
The Village Preservation and more than a dozen residents also spoke out against the plan yesterday.
[Photo yesterday via Village Preservation]
With the air-rights transfer, developer Real Estate Equities Corporation (REEC) would be allowed to build 8,386 square feet larger than the current zoning allows.
Regardless of an extra 8,000 square feet, the project will continue. Per Gothamist:
At Wednesday's public hearing, the project's architect Morris Adjmi emphasized a building of a similar height size could be built as-of-right, saying, "one could build this building without a special permit, without transferring any air rights, and it is 22 feet taller at the street wall and also more or less the same height overall."
A rep for the developers, Adam Taubman of the law firm Kramer Levin, also said at the hearing the currently vacant lot would see construction whether or not the permit is approved.
REEC picked up the 99-year leasehold for the properties here for nearly $150 million in November 2017. The corner assemblage is owned by the Gabay family.
Previously on EV Grieve:
• Demolition permits filed for northeast corner of 3rd Avenue and St. Mark's Place
• End is nearing for the businesses on the northeast corner of 3rd Avenue and St. Mark's Place
• New building plans revealed for 3rd Avenue and St. Mark's Place
• Concern over potential air-rights transfer for new office building on St. Mark's Place and 3rd Avenue