The land market was one of the weakest real estate segments in New York City in 2021. The top five development plot deals last year brought in nearly $435 million in total, a slight increase from compared to pandemic-hit 2020, but still down 27% from 2019’s $597 million.
As in previous years, proposed residential developments again topped the list, but a deal for a warehouse development in Brooklyn – a possible sign of the times as the logistics sector continues to benefit from voracious demand.
Below are the five most expensive dev sites sold in New York last year:
1. 300 Nevins Street | $102M
Buyer: Tavros Capital and Charney Companies
Seller: Real Estate Markets Group
With the rezoning of Gowanus finally approved, Tavros Capital and Charney Companies purchased this entire site at 318 Nevins Street along the Gowanus Canal from Property Markets Group for $102 million.
Tavros, founded by partners Dov Barnett and Nicholas Silvers, and Sam Charney’s Charney Companies plans to build about 660 rental apartments on the property, which has more than 500,000 square feet of buildable space.
The property at 318 Nevins Street sits in an area of opportunity between Union and Carroll streets on the east side of the canal.
2. 111 Washington Street | $89.2M
Buyer: Grubb Properties
Seller Pink Stone Capital
This September sale ended a long-running family dispute over a popular development site in the financial district.
Pink Stone Capital founder Richard Ohebshalom sued his father, developer Fred Ohebshalom, in 2017 to try to block the sale of the site, which has room for a 50-story tower with 400 residential units.
Richard eventually bought the property back from his father and put it back on the market in 2020. North Carolina-based Grubb Properties has picked it up and plans to develop the plot with an address at 8 Carlisle. Pink Stone will remain as a partner.
3. 2-33 50th Avenue | $88.5M
Buyer: Vorea Group, Domain Companies and L+M Development Partners
Seller: Fortress Corporation
A trio of developers plan to build a 12-story, 500-unit residential property on this Long Island City site, which they closed in September.
Vorea Group, Domain Companies and development partners L+M reclaimed the property from self-storage company Fortress Corporation, which had owned the land since 1996.
The 76,000 square foot property, which sits in an opportunity zone, allows for up to 420,000 square feet of residential space.
4. 280 Richards Street | $78 million
Seller: Thor Equities
Joe Sitt’s Thor Equities has sold a stake in its Amazon-anchored warehouse development in Red Hook to a “foreign entity” as part of a wider recapitalization.
Thor plans to build a state-of-the-art fulfillment center with over 300,000 square feet of space, which is pre-leased to Amazon for 20 years.
Sitt’s company originally planned to develop an office building on the site, but changed direction in 2019 and opted for industrial use. As part of the recapitalization, the developer secured a $76 million construction loan for the project.
5. 506 West 36th Street | $77 million
Vendor: Spitzer Enterprises
Eliot Spitzer has sold all but a 0.1% stake in a trio of Hudson Yards plots to Stephen Ross’ related companies. A joint venture between Related and Spitzer Enterprises is developing a large residential project nearby.
The deal left Related with a 99.9% stake in 506 and 512 West 36th Street and 511 West 35th Street, which Spitzer bought in 2013 for $88 million.
Related and Spitzer are teaming up with Atria Senior Living and Welltower to build a residential tower at 410 10th Avenue with 526 homes, about a quarter of which will be for seniors.