Tuesday's parting shot

Rolling up laters of wheatepaste posters this evening outside the dormant construction pit on the NE corner of Third Avenue at St. Mark's Place... (on the top — Supreme's Spring/Summer 2022 ad by Harmony Korine featuring Julix Fox...)

Report: Madison Realty Capital moving to foreclose on leasehold for 3 St. Mark's Place

The Real Deal is reporting that Madison Realty Capital is moving to foreclose on Real Estate Equities Corp.'s (REEC) leasehold interest at 3 St. Mark’s Place.

Some numbers and background from TRD's report:

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. 

This past October, the City Council's Zoning Subcommittee voted down REEC's application seeking to transfer air rights from the landmarked 4 St. Marks Place to the new building across the street.

With the air-rights transfer, REEC would have been allowed to build 8,386 square feet larger than the current zoning allows on the northeast corner.

Regardless of an extra 8,000 square feet, the project's architect, Morris Adjmi, has said a building of a similar height size would be built as of right.

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.

The previous buildings here, which included retail tenants such as Korilla BBQ, the Continental and McDonald's, were demolished in the summer of 2019.

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   

The ridiculously narrow pedestrian passage at the NE corner of St. Mark's Place and 3rd Avenue

Over at the northeast corner of St. Mark's Place and Third Avenue, EVG reader Perry K. notes a troubling trend.

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.

And that is about a foot (Perry's foot) ...  

Not sure at the moment who's responsible for narrowing this pedestrian corridor. There hasn't been much if any, construction activity behind the plywood fence of late.

As previously reported, a 10-story office building is going in at 3 St. Mark's Place at Third Avenue. 

This past October, the City Council's Zoning Subcommittee voted down the application by developer Real Estate Equities Corporation (REEC) seeking to transfer air rights from the landmarked 4 St. Marks Place to the new building across the street.

With the air-rights transfer, REEC would have been allowed to build 8,386 square feet larger than the current zoning allows on the northeast corner.

Regardless of an extra 8,000 square feet, construction will still happen. The project's architect, Morris Adjmi, has said 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   

City committee says no to air-rights transfer for 3 St. Mark's Place

It appears that the 10-story office building going in at 3 St. Mark's Place at Third Avenue will be 20-percent smaller than the developers had hoped. 

Yesterday, the City Council’s Zoning Subcommittee voted down the application by developer Real Estate Equities Corporation (REEC) seeking to transfer air rights from the landmarked 4 St. Marks Place to the new building across the street.

With the air-rights transfer, REEC would have been allowed to build 8,386 square feet larger than the current zoning allows on the northeast corner.

The Village Preservation, who had rallied support against the transfer, noted this denial via an enewsletter:

This more or less guarantees that the air rights transfer, which requires City Council approval, will not happen. Local Councilmember Carlina Rivera voted against the air rights transfer and urged her fellow Councilmembers to do the same. State Sen. Brad Hoylman and Assemblymember Deborah Glick had joined us in testifying against the application and urging its rejection, and Borough President Brewer had recommended its rejection earlier in the year.  

As we've been reporting in recents months, work has already commenced on the northeast corner of Third Avenue and St. Mark's Place, where the building has a February 2022 completion date. 

Regardless of an extra 8,000 square feet, construction will still happen. The project's architect, Morris Adjmi, has said 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 

Final public hearing on a larger 3 St. Mark's Place coming soon

 

The final public hearing on the application to allow the air rights transfer to increase the size of the office building under construction at 3 St. Mark's Place is expected to happen on Sept. 24. According to Village Preservation, the hearing originally scheduled for today was postponed. 

Per Village Preservation:

In spite of overwhelming public opposition, in late August the City Planning Commission (consisting of appointees of the Mayor, the five borough presidents, and the Public Advocate) voted unanimously to approve the air rights transfer, adding thousands of square feet to the planned boutique tech office tower at this corner, long dubbed "the Gateway to the East Village."

However, to proceed, the transfer needs the blessing of City Council, and local CM Carlina Rivera already publically stated her opposition in early March. 

As we've been reporting in recents months, work has already commenced on the northeast corner of Third Avenue and St. Mark's Place, site of a future 10-story office building with an aggressive February 2022 completion date.

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

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...

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

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

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

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.

That’s why I urged the City Planning Commission to reject it. https://t.co/iZjps2UZ5Z

— Carlina Rivera 利華娜 (@CarlinaRivera) March 4, 2020

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

CB3 hearing tonight about the air-rights transfer for new office building on St. Mark's Place

Tonight, CB3's Land Use, Zoning, Public & Private Housing Committee is holding a public hearing on the special permit to transfer air rights from the landmarked 4 St. Marks Place to increase the size of the proposed office building across the street.

As you likely know, a 10-floor office building is in the works for the northeast corner of Third Avenue and St. Mark's Place. The total size of this new building has yet to be officially determined. Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House to add more square footage, which is 20 percent larger than current zoning allows.

This marks the second stage for the application. In round one, the Landmarks Preservation Commission voted to support the plan in June, and issued a report to the City Planning Commission to allow the proposal under a specific zoning resolution. The opposition to the application included Manhattan Borough President Gale Brewer, State Sen. Brad Hoylman and Assemblymember Deborah Glick, as well as Community Board 3, Village Preservation and other community groups.

Stage two's route as part of the city’s Uniform Land Use Review Procedure eventually includes a trip to the City Planning Commission and City Council, who will have the final vote at a future date.

REEC picked up the 99-year leasehold for the properties here for nearly $150 million in November 2017. Their development plans call for a 68,224-square-foot building with eight floors of office space, a fitness center, roof deck, and 7,886 square feet of retail.


[A rendering of 3 St. Mark's Place]

REEC is reportedly eyeing rents in the area of a Midtown-esque $150 per square foot.

And these types of rent and development are the reasons that Village Preservation remains opposed to the plan. As they write:

[W]e do not want to see an even larger tech-related office tower rising at this location. This project has already resulted in the demolition of a nearly 200 year old house containing residential units. The replacement of low-rise, historic, and often residential buildings in this area south of Union Square by high-rise office towers is part of the city’s plan for this area in the wake of the approval last year of the Mayor’s 14th Street “Tech Hub,” with the support of Councilmember Carlina Rivera.

Tonight's CB3 committee starts at 6:30 p.m. at the Meltzer Senior Center, 94 E. First St. between Avenue A and First Avenue.

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

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Final demolition phase for 1 St. Mark's Place; more questions about lobbyists attached to project

Report: LPC approves transfer of air rights across St. Mark's Place

Financing comes together for the office building planned for the gateway of the East Village

Financing comes together for the office building planned for the gateway of the East Village

[Photo from yesterday]

All has been quiet on the northeast corner of Third Avenue and St. Mark's Place since workers cleared the lot in late summer of the assemblage of buildings that housed Korilla BBQ, the Continental and McDonald's, among other businesses.

For the foreseeable future, the RIP ST. MARKS message, which arrived over the summer on the west-facing wall of 5 St. Mark's Place, will continue to greet passersby.

As you likely know, a 10-floor office building with ground-floor retail is in the works here. The total size of this new building has yet to be officially determined. Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to add more square footage, a move that has plenty of critics.

In June, the Landmarks Preservation Commission voted to support the plan, and has issued a report to the City Planning Commission to allow the proposal under a specific zoning resolution.

The City Planning Commission will likely sign off on the project next as part of the city’s Uniform Land Use Review Procedure. City Council will have the final say on the Morris Adjimi-designed building. Those meeting dates have not yet been made public. (This Zoning Application Portal provides a project status. The most recent activity by the developer: filing the Land Use application on Oct. 3.)

Meanwhile, the financial elements are coming together for the project.

This press release — citing square footage even though it hasn't been determined — landed in our inbox last Friday:

Madison Realty Capital (MRC) has provided a $48 million senior loan for the funding of a $79.1 million financing package for the development of a mixed-use office project at 3 St. Mark’s Place ...

Hana Financial Group, a leading South Korean financial services company, provided Real Estate Equities Corporation (REEC), an experienced local developer with an additional $31.1 million of mezzanine financing to fully capitalize the project.

REEC’s development plans call for a 10-story, 68,224-square-foot modern boutique office building with eight floors of office space, a fitness center, roof deck, and 7,886 square feet of retail.

The property is well-located at the corner of St. Mark’s Place and 3rd Avenue in a section of Manhattan’s East Village that has seen significant growth in demand for quality office space from a mix of tech, finance, law, and family office tenants in recent years.

The site is adjacent to 51 Astor Place, a 400,000-square-foot office and retail asset developed by Minskoff Equities that is home to anchor tenants IBM Watson and St. John’s University, in addition to a strong retail roster that includes Shake Shack, Flywheel, Bluestone Lane and Orange Theory.

In reporting on this financing, The Real Deal noted:

The developers will be eyeing rents in the area of $150 per square foot. Such figures were once only seen in the most expensive locations in Midtown but now are commonplace for newly constructed office buildings in areas like the Meatpacking District, Soho and Greenwich Village.

[A rendering of 3 St. Mark's Place]

Madison Realty Capital, who provided the senior loan, is a familiar name for some EV residents. In the fall of 2015, they loaned $124 million to Rafael Toledano, a then 25 year old with no track record as a landlord so that he could buy a portfolio of 15 buildings, mostly in the East Village. He eventually defaulted on Madison's loan.

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

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Final demolition phase for 1 St. Mark's Place; more questions about lobbyists attached to project

Report: LPC approves transfer of air rights across St. Mark's Place

Live at 1 St. Mark's Place this summer; views of 51 Astor Place are free

What's left of the northeast corner of 3rd Avenue and St. Mark's Place

If the headline was a question, then the answer would be not much.

A look through the handy blogger portals on the plywood reveals the scattered remains of the northeast corner of Third Avenue and St. Mark's Place... the buildings that previously housed Korilla BBQ, the Continental and McDonald's are gone. (No word on what finally happened to the Continental's 6-shots-of-anything-for-$12 signage that was still intact as of last Thursday.)




[Photo yesterday by Derek Berg]

And with the demolition of the buildings, the RIP ST. MARKS message on the west-facing wall of 5 St. Mark's Place is now fully visible from across the street...



As you likely know, a 10-floor office building with ground-floor retail is due here. The total size of this new building has yet to be determined. Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to add more square footage, a move that has had its critics.

In June, the Landmarks Preservation Commission voted to support the plan, and has issued a report to the City Planning Commission to allow the proposal under a specific zoning resolution.

The City Planning Commission will likely sign off on the project next as part of the city’s Uniform Land Use Review Procedure. City Council will have the final say on the Morris Adjimi-designed building. Those meeting dates have not yet been made public.

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

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Final demolition phase for 1 St. Mark's Place; more questions about lobbyists attached to project

Report: LPC approves transfer of air rights across St. Mark's Place

Live at 1 St. Mark's Place this summer; views of 51 Astor Place are free

The disappearing northeast corner of 3rd Avenue and St. Mark's Place

Workers continue to demolish the northeast corner of Third Avenue and St. Mark's Place... the building that previously housed Korilla BBQ is about half of what it used to be (the building that housed the Continental next door is still standing) ...



... you can catch a glimpse of what's left behind the construction shroud...



As you likely know, 3 St. Mark’s Place, 23 and 25-27 Third Avenue are coming down to make way for an office building with ground-floor retail.

The size of this new building has yet to be determined. As previously reported, Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to add more square footage to their office building, a move that has had its critics.

In June, the LPC ultimately lent its support to the plan, and has issued a report to the City Planning Commission to allow the proposal under a specific zoning resolution.

The City Planning Commission will likely sign off on the project next as part of the city’s Uniform Land Use Review Procedure. City Council will have the final say on the size of the Morris Adjimi-designed building.


[The proposed 3 St. Mark's Place as seen from Astor Place]

Meanwhile, as you may have noticed, someone recently wrote an obituary on the west-facing wall of 5 St. Mark's Place...





RIP St. Mark's...



This wall was once home for years to the John Spacely "Gringo" mural... from 1983 to the early 2000s ...


[Image via]

And a view from 1983 via the "Lower East Side: Back In The Days" Facebook group...



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

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Final demolition phase for 1 St. Mark's Place; more questions about lobbyists attached to project

Report: LPC approves transfer of air rights across St. Mark's Place

Live at 1 St. Mark's Place this summer; views of 51 Astor Place are free

Final demolition phase for 1 St. Mark's Place; more questions about lobbyists attached to project

Workers shrouded the exterior here on the northeast corner of Third Avenue and St. Mark's Place last week as demolition enters the final phase.

As previously reported, 3 St. Mark’s Place, 23 and 25-27 Third Avenue are coming down to make way for an office building with ground-floor retail.





The size of this new building has yet to be determined. As previously reported, Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to add more floors and square footage to their office building, a move that has its critics, including Community Board 3 and State Sen. Brad Hoylman and Assemblywoman Deborah Glick, who reportedly called on the Landmarks Preservation Commission to deny the bulk waiver.

REEC has already filed permits (last October) for an as-of-right five-story, 29,030-square-foot building on the corner. If the air rights deal is ultimately OK'd, then the Morris Adjimi-designed building at 3 St. Mark's Place could bulk up to 10 stories.

Yesterday, the Daily News looked at the lobbyists tied to the project — those who happen to have connections with Mayor de Blasio. (We explored this angle back in February.)

Andrew Berman, executive director of Village Preservation, told this to the News:

"The mayor’s prodigious fundraiser, lobbyist Jim Capalino, is seeking favors from City Hall for his clients to lift restrictions and facilitate inappropriate development in the East Village. The number of projects this lobbying firm has gotten approvals for in this neighborhood is mind-boggling.

"Each new favor builds upon the next,” he continued. "First he got permission for an upzoning south of Union Square for an oversized ‘tech hub.’ Now he’s seeking air rights transfers to continue the spread of ‘Silicon Alley’ to St. Mark’s Place. The mayor’s pay-to-play practices are utterly transforming this neighborhood."

Capalino's spokesperson, Kenneth Fisher, had this response:

"Projects like these require multiple levels of public review and hearings and consideration of the merits by numerous public officials and professionals. Perhaps [Berman] would be more successful arguing on these merits rather than spreading absurd rumors."

As far as next steps, here's Curbed after the previous LPC meeting in April:

REEC will return to LPC at a not-yet-scheduled public meeting once they have altered their proposal to incorporate the commission’s recommendation that they lower the structure’s first setback to better align with St. Mark’s street wall and other feedback.

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

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place

Demolition nearing for the northeast corner of 3rd Avenue and St. Mark's Place

Workers yesterday started erecting the sidewalk bridge around the northeast corner of Third Avenue and St. Mark's Place, marking the next phase of demolition. (H/T Steven, Nick Solares and @unitof!)

Until yesterday, the prep work was going on inside the vacant assemblage of buildings — 3 St. Mark’s Place, 23 and 25-27 Third Avenue. This has been a long time coming: Permits were filed in March 2018 to tear down the existing structures to make way for an office building with ground-floor retail.


[Photo yesterday afternoon by Steven]

The size of this new building has yet to be determined. As previously reported, Real Estate Equities Corporation (REEC) wants to transfer the air rights from the landmarked Hamilton-Holly House at 4 St. Mark's Place to add more floors and square footage to their office building.

REEC has already filed permits (last October) for an as-of-right five-story, 29,030-square-foot building on the corner. If the air rights deal is ultimately OK'd, then the Morris Adjimi-designed building at 3 St. Mark's Place would rise to 10 stories.



The Landmarks Preservation Commission heard the application to transfer the air rights back on April 9. In the end, they asked REEC and Adjimi to return with some modifications.

REEC picked up the 99-year leasehold for the properties — housing McDonald's, the Continental, Korilla BBQ and Papaya King, among others — for nearly $150 million in November 2017. The corner assemblage is owned by the Gabay family.

Meanwhile, the once-completed sidewalk bridge should make for a popular hangout this coming summer.

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

Developers of 3 St. Mark's Place are looking to increase the size of their proposed office building at 3rd Avenue to 10 floors with air-rights deal

The lobbyists behind the air-rights transfer and zoning variance for 3 St. Mark's Place