Unarrested development: activity at the long-stalled corner of St. Mark's Place and 3rd Avenue

Top photo by @unitof

Yesterday saw the first sign of activity on the NE corner of St. Mark's Place and Third Avenue in nearly 10 months (aside from the daily additions of wheatpaste ads). 

Workers started erecting a new plywood fence and adding sidewalk barriers ...

The plywood signals a coming-soon restart of the foundation work on the (gulp) 9-story, 61,000-square-foot office building, officially 1 St. Mark's Place.

As reported last month, developer Real Estate Equities Corp. (REEC) received a $70-million loan to kickstart the project.

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. (This after some legal drama involving allegations that REEC defaulted on a $48 million mortgage, per published reports.)

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.

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

REEC picked up the 99-year leasehold for the corner properties for nearly $150 million in November 2017. The previous assemblage, which included retail tenants such as Korilla BBQ, the Continental and McDonald's, was demolished in 2019. 

The project includes nearly 7,700 square feet of retail space and is slated for a summer 2024 completion.

Report: Office building for 3rd Avenue and St. Mark's Place moving forward after developer secures $70-million loan

The 9-floor office building for the northeast corner of Third Avenue and St. Mark's Place has new life after the developer received a $70-million loan.

As The Real Deal first reported, Parkview Financial is providing the loan for the refinancing and construction to developer Real Estate Equities Corp. (REEC) for the 61,000-square-foot building at 1 St. Marks Place. 

Per TRD, REEC plans on 53,000 square feet of office space and some 7,700 square feet for retail.

Parkview CEO Paul Rahimian said in a statement that 1 St. Mark's Place could be in "high demand from the growing number of tech companies in the area."

Here's more from TRD on the project, slated for a summer 2024 completion, and the office-market outlook:

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.

Last August, TRD reported that Madison Realty Capital was moving to foreclose on REEC's leasehold interest:

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 

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.

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

REEC picked up the 99-year leasehold for the corner properties for nearly $150 million in November 2017. The previous assemblage, which included retail tenants such as Korilla BBQ, the Continental and McDonald's, was demolished in 2019.

For the past year-plus, this gateway to the East Village — with the "RIP St. Marks" greeting on the west-facing wall at No. 5 — has served as prime wheatpaste ad space...

... and beware of falling wheatpaste ads! (photo by Steven)...

2022 corner watch: St. Mark's Place and 3rd Avenue

All remains quiet on the eastern front.

In recent months, we haven't seen much, if any, activity at the development site on the northeast corner of Third Avenue and St. Mark's Place.

In early October, workers removed the barriers from around the work site... allowing pedestrians to use the sidewalks again — for the first time since the barricades arrived in June 2020.

This past August, The Real Deal reported that Madison Realty Capital was 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.

A REEC spokesperson said that they "are working on a recapitalization plan and are optimistic that this will be resolved soon." We don't know where this stands now. The rendering has been removed from the plywood, and there aren't any posted work permits. 

As you may recall, a 10-story office building had been in the works here. The partially approved work permits dated May 2020 show that the building is now 9 floors — 45,207 square feet in total, with 3,400 square feet designated for a commercial facility.

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.

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

REEC picked up the 99-year leasehold for the corner properties for nearly $150 million in November 2017. The previous buildings here, including retail tenants such as Korilla BBQ, the Continental and McDonald's, were demolished in 2019.

For the time being, this gateway to the East Village is prime wheatpaste ad space (Rowing Blazers! Siren Basics!) ... and a corner to watch in 2022.

Office building for 3 St. Mark's Place appears stalled for now

As we reported earlier this month, workers at the development site on the northeast corner of Third Avenue and St. Mark's Place removed the barriers from around the work site... allowing pedestrians to use the sidewalks once again — for the first time since the barricades arrived in June 2020 at this gateway to the East Village...

Several weeks later, there's not much going on at the site as work appears to have stopped. (The excavator has moved from one spot to another.) Meanwhile, there aren't any posted work permits on the plywood... 

In addition, the rendering for the proposed office building has been discarded inside the pit, where little progress can be detected (soil testing started in March 2020)...

What's all this mean? Well, don't expect construction to commence anytime soon.

In August, The Real Deal reported that Madison Realty Capital was 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.

A REEC spokesperson said that they "are working on a recapitalization plan and are optimistic that this will be resolved soon."

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.

The partially approved work permits dated from May show that the building is now 9 floors — 45,207 square feet in total, with 3,400 square feet designated for a commercial facility.

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.

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

REEC picked up the 99-year leasehold for the corner properties for nearly $150 million in November 2017. The previous buildings here, which included retail tenants such as Korilla BBQ, the Continental and McDonald's, were demolished in 2019.

Bottom two photos by Steven

Sidewalk usage available again on the NE corner of 3rd Avenue and St. Mark's Place

In recent months, we've been noting (here and here) the pedestrian passageway on the north side of St. Mark's Place at Third Avenue. There is/was an ongoing game of barrier accordion that saw the corridor shrink-expand anywhere from 18 inches to, say, an inch (see above).

However, in a rather unexpected development, pedestrians now have FULL access to the sidewalk again. 

As @unitof documented for us yesterday, the project manager at the development site on the corner had the plywood moved back... revealing the sidewalk again on St. Mark's Place and Third Avenue...

And for a moment, on Monday night, there was sidewalk access and a superwide pedestrian barrier...

Now, if someone could only permanently push back the construction of the 10-story office building expected here!

A live look at the pedestrian passageway outside 3 St. Mark's Place

The pedestrian passageway on the north side of St. Mark's Place at Third Avenue is now down to about, say, three inches, at its most narrow junction, EVG reader Perry K. notes this afternoon. 

Read more about this ongoing game of barrier accordion outside this construction site right here. 

Updated 3:45 

Here's another view via Steven...

The expanding and shrinking pedestrian passage on St. Mark's Place at 3rd Avenue

Yesterday's news from 1 St. Mark's Place (Madison Realty Capital moving to foreclose on Real Estate Equities Corp.'s leasehold) prompted another look at the construction barriers along the construction site.

As noted in late June, the pedestrian passageway on the north side of St. Mark's Place at Third Avenue continues to shrink. At times, the passage is about a foot wide at its most narrow point ...

A few more pics from our summer collection... 

The game of barrier accordion should continue for the foreseeable future as the foreclosure proceedings continue with the developer. Who knows when construction may actually start. 

As a P.S. ... Eden spotted a familiar carpet-clad figure on the Third Avenue side of the site on Sunday...

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