Residents Speak Out Against New Towers at 260 South St.

Community meeting at the Shuang Wen School Dec. 1, 2016.

Community meeting at the Shuang Wen School Dec. 1, 2016.

We broke the news last night that L+M Development Partners and the CIM Group are planning to build a huge residential building at 260 South St. Also last night, people who live in a neighboring complex, 265-275 Cherry St., were invited to an auditorium at the Shaung Wen School to hear details about the project. Here’s a recap of that meeting.

As previously reported, the developers intend to put up two towers, the larger one topping out at almost 800 feet. There could be up to 1350 apartments, 25% designated as permanently affordable. The development site is a parking lot used by 265-275 Cherry St., a Section 8 complex known as Lands End II. L+M and CIM Group purchased the 490-unit affordable property three years ago. They are promising to build new parks and playgrounds, a new community room, new retail and flood protection measures for the existing residents. But none of these things mattered to tenants last night in comparison with this: 100 apartments in Lands End II will be losing their East River views as part of the new development.

260 South St. massing

There was an audible gasp in the audience as the slide you see posted here flashed up on a big screen. It shows the 68 and 62 story towers dwarfing the existing 26-story buildings. Charles Torres was one of the first to speak up. He lives with his aunt at 265 Cherry St., although her apartment faces north rather than towards the river.  “The height of this building is extremely high,” he said. “We look minuscule compared to this building. We are losing this view… The people who have been here for so long — that’s all we have. Your buildings will have the views, not us.”

A woman who declined to give her name said she lives in a “beautiful apartment” that faces the Brooklyn Bridge, the Manhattan Bridge and the East River. She told members of the development team that they’re, “taking away a view we’ve had for over 40 years. I don’t want more trees because you’re blocking the sun anyway. We don’t need a bigger grocery store.” The woman said the time had come to mobilize her community against the project. “If you’re telling us that now is the time to go back home,” she said, “and talk to our families and talk to our neighbors to get everyone out here Dec. 15 (when another community meeting will take place), then that’s what needs to happen.”

Alex Kafenbaum of the CIM Group led last night’s presentation and Katherine Kelman and L+M fielded a series of pointed questions from residents. Kafenbaum noted that, “This area was planned for high-density development 30 years ago,” and that building on the parking lot site is inevitable. The project is utilizing more than one-million square feet in unused development rights. If L+M and CIM Group were to sell the site, they explained, some other developer would come along. A few years ago, there were plans for a 16-story senior housing center and health facility on the site.

260 south st. rejected scheme

Kafenbaum showed residents an alternative scheme, which was rejected, featuring a single building stretching across the development site. While it wouldn’t have been as tall as the towers now being planned, the new structure would have completely blocked light and air from the river, leaving the existing park and playground in shadows. They touted all of the improvements planned at 265-275 Cherry St. “We’re approaching this new building,” said Kelman, “as an opportunity to make significant improvements to the whole block which would not otherwise be possible.”

Residents wanted to know whether they have the power to stop the project from moving forward. Kelman told them that the proposal is subject to an enhanced environmental review and approval by the City Planning Commission. Over the summer, city officials rejected a request from City Council member Margaret Chin for a ULURP (public land review process) in the Two Bridges area. As an alternative, the Department of City Planning agreed to a more robust evaluation of neighborhood conditions prior to approving to plan at 260 South St. and two other large-scale projects. But unlike a ULURP, the enhanced environmental review does not require City Council approval.

As the meeting drew to a close, the tenant association chairperson at Lands End II rose to assure residents that they “have a voice” in the process.  Tanya Castro explained that a task force was set up with representation by all of the tenant leaders along the waterfront.  She explained, “The resident leaders speak on your behalf. We were just waiting for this presentation, for all of you to see it. We can now go back to the residents and ask. ‘What do you want?’ You do have a voice. You do have protection.”

The first public meeting to discuss the environmental review will be held Dec. 15 at 6:30 p.m., at Gouverneur Health, 227 Madison St.

L+M and CIM Group Detail Massive Project in Two Bridges Area

260 South St./Retail View

Expanded retail on Cherry Street is part of the new development plan. Rendering by Handel Architects.

L+M Development Partners and the CIM Group are unveiling plans tonight for a new project at 260 South St. that will add more than one-million square feet of residential and commercial space in the Two Bridges neighborhood. The development team outlined the proposal for two towers, the tallest measuring nearly 800 feet, in an interview with The Lo-Down earlier this week. They briefed local residents in a neighboring complex, which the developers also own, this evening.

The massive complex is one of four large-scale projects set to transform the Two Bridges community in the next several years. It will include up to 1350 apartments, as many as 338 of the units set aside for low-income and/or middle-income families. Some senior housing is anticipated. The developers also plan new ground floor retail on Cherry Street, new green spaces and upgraded flood protection systems.

L+M and CIM Group partnered in 2013 to purchase 265-275 Cherry St. (also known as Lands End II), Section 8 rental towers with 490 apartments. The following year, they picked up an adjacent parking lot on South Street, which is where the new towers are going to rise.

In our interview Wednesday morning, David Dishy, L +M partner and president of development and acquisition; Katherine Kelman, L+M associate director; and Alex Kafenbaum, associate with the CIM Group walked us through preliminary details of the ambitious project. In recent years, L+M Development has become a familiar presence on the Lower East Side. It’s part of the partnership building the large Essex Crossing project on Delancey Street and has other developments in-the-works throughout the East Village. CIM Group is a Los Angeles-based firm that has become a major player in New York City during the past few years. Among other projects, it’s building condos at 100 Barclay St. and 432 Park Avenue.

260 South St. massing

Massing diagram from community presentation.

Handel Architects, tasked with designing the new project, is still working on concept drawings for the two skinny towers. In the meantime, the developers are making available sketches depicting the overall size, shape and positioning of the buildings.

As you can see in the illustration posted here, the larger tower will measure 798 feet, or 69 floors. The shorter tower will top out at 728 feet, or 62 stories (the number of floors could change based on conversations with city planning officials). “The overall concept,” explained Kelman, “is that it’s two slender towers on a shared podium with a single lobby.” The towers start out 60-feet apart and there are a series of setbacks as they rise. On the upper floors, the distance between the buildings grows to 75 feet. “They’re intentionally differentiated,” she said, “to create some visual interest.”

The team looked at building a single structure stretching across most of the lot on South Street, but concluded that it would have blocked light and views to the East River, in her words, “diminishing the quality of the entire site.” It also would have made the open recreational spaces on the property a lot less appealing. “So, instead we decided on two towers,” said Kelman, “with space between them and a lobby with a ground floor that has a lot of transparency (allowing people on Cherry Street to see through to the river).”

The biggest drawback for current residents is a significant one. The new towers will back up to the existing buildings, blocking windows facing the river in about 100 apartments. “But all of those apartments,” said Kelman, “also have rooms facing east or west that are the legal light and air and they will continue to be used as they are now.” This was, to no one’s surprise, a major point of contention at tonight’s community meeting (we’ll have a recap of the meeting tomorrow).

260 South St. Rutgers Park View

Preliminary open space design. Rendering by Handel Architects.

The developers are obviously very much aware that people in the Two Bridges neighborhood are, at best, skeptical of new development projects. Noise, buckling sidewalks and other construction problems from Extell’s 80-story One Manhattan Square mega-tower have caused consternation in he local community. Plans announced last spring by JDS Development for a 77-story residential tower at 247 Cherry St. raised new worries.

This is one of the reasons they’re emphasizing new amenities for the residents of Lands End II, the property they’ve owned for the past three years. As Kelman explained, “We own the Cherry Street buildings, we own the development site. We want both properties to be successful. We are using the new building as an opportunity to make improvements to the Cherry Street properties, as well, and to improve the quality of life on the block for existing residents and new residents.”

While there’s quite a bit of open space on the property now, it’s underutilized and dominated by concrete rather than grass and trees. The landscape architecture firm, Mathews Nielsen, was hired to evaluate all of the recreational areas within a 10 minute walk of the development site.  They found a fair number of basketball courts and playgrounds, but not much in the way of community gardens and open spaces for seniors to exercise. Early plans call for new seating areas, landscaping, separate ADA-compliant play areas for toddlers and older kids, spaces for seniors and a lawn for passive and active recreation. There will be two design workshops early next year for residents to help design the new outdoor amenities.

260 south street proposed landscaping

Drawing by Mathews Nielsen.

In accordance with guidelines instituted after Hurricane Sandy, the new project will be elevated above the 100-year-floodplain. In order to protect the existing Cherry Street buildings, the developers are looking at a network of earthen berms, flood walls and temporary flood protection gates.

Also on Cherry Street, plans call for building out retail spaces almost to the property line. At the moment, the Lands End II complex features only one commercial business, a Stop 1 Deli. After the local Pathmark store closed a few years ago to make way for Extell’s luxury tower, the deli became just about the only place in the immediate area to buy food. In the expanded commercial spaces, the developers explained, a small grocery store or a pharmacy (perhaps as large as 4,000 square feet) could be accommodated.

Finally, 103 parking spaces in the current surface lot will be replaced with underground parking and a new community room will be built in a space currently occupied by Two Bridges Neighborhood Council.

As each new development project has been announced, residents in the Two Bridges area have expressed new fears about change in a neighborhood long considered a bastion of stable affordable housing. Thousands of market rate apartments will be created in the next several years. But this development team is underscoring its commitment to affordable housing. In 2013, they agreed to extend the affordable housing contract at Lands End II for 40 years, protecting 490 apartments. In the new project, 25% of the units will be designated as permanently affordable. They’ll be evenly distributed throughout the towers. There will be no “poor door.”

265-275 Cherry St.

265-275 Cherry St.

During the next year, there will be an enhanced environmental review in the Two Bridges area to address community concerns about the three large-scale projects on the drawing board. All of the developers, including L+M and CIM Group, have agreed to take part in a series of upcoming community meetings (we’ll have more about the upcoming sessions on Monday).

The developers of 260 South St. say they’ll meet with local residents on a regular basis to discuss concerns about construction. Dishy said L+M will be using Essex Crossing, where the development team has placed a high priority on community engagement, as a model. In that project, he said, it’s been important to the partners to establish good credibility in the neighborhood. “We want to maintain that credibility and continue that reputation for being forthright, transparent and for having good communication with (the neighborhood),” said Dishy.

Kafenbaum agreed that local engagement regarding construction issues will be key. “Recognizing that we own the adjacent buildings,” he said, “is a really important thing because we want to be really good landlords and good management companies that recognize the needs of our existing residents.” Kafenbaum added, “There have been a lot of construction issues in the (Two Bridges) neighborhood over these current buildings (but in the new project) there is no one who would want to better protect the people in the immediately adjacent buildings than us.”

In summing up the project, Dishy acknowledged that the towers are obviously “big buildings,” but he argued that there is an upside for the community. “We appreciate what makes the Two Bridges neighborhood special,” he said. “It’s what got us here in the first place.” The proximity to the East River, Lower Manhattan’s mixed-income character, the neighborhood’s access to public transportation were all selling points for the development team.  Dishy added, “We are trying, as much as possible, to maintain that sense of community, to create a project (that will lead local residents to ultimately say), ‘You know, these are big buildings, but they’re really nice and it’s made life better for folks who live here now,’ both (in terms of) open space, access to the water, community space, all of those kinds of things.”

After going through an environmental review and undergoing an approval process with the Department of City Planning, the developers hope to begin construction in 2018 and complete the project in 2021.

The developers of 260 South St., as well as JDS Development Group and the Starrett Corp, which is planning a large project at 271-283 South St., will present their proposals at a public meeting Dec. 15 at 6:30 p.m. The meeting will be held at Gouverneur Health, 227 Madison St.

Coming up tomorrow, a report from last night’s community meeting, including reaction from residents regarding the new towers in the Two Bridges neighborhood.

UPDATE 12/2/2016: See reaction from residents here.

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Extell Development’s Lower East Side Project Misses Another Financing Deadline

Rendering: One Manhattan Square.

Rendering: One Manhattan Square.

Developer Gary Barnett seems to be having some troubling pulling together the financing for One Manhattan Square, his 80-story mega-tower in the Two Bridges neighborhood. Here’s the story from Bloomberg:

Extell is hoping to complete a $463.2 million financing agreement with office landlord RXR Realty LLC to build One Manhattan Square on South Street, but that partnership was postponed for a fourth time Monday. The company still hasn’t secured a construction loan for the project, which is a condition of the deal, according to filings on the Tel Aviv Stock Exchange, where the New York-based developer sells debt.

The project, now under construction at 250 South St., is set to include 815 luxury condos. RXR has now cut its initial commitment to $300 million. It will decide later on whether to kick in another $163 million. The firm will also charge 8% interest, up from 7%.

Extell has been trying to lock in a $550 million construction loan with Deutsche Bank AG and other financial entities by the end of this month. Here’s Bloomberg’s assessment of the situation:

Extell, which ushered in Manhattan’s luxury condo boom with the construction of the One57 skyscraper across from Carnegie Hall, is now getting caught up in its aftermath. The luxury market is showing signs of a slowdown as inventory swells and interest from ultra-wealthy buyers cools amid so much competition. That has made construction loans increasingly hard to get, as lenders are wary of adding more units to a market where they do not appear to be in demand.

More from the Real Deal:

“RXR’s decision is creating a bigger hole for Extell, but it also reduces Extell’s total exposure,” Ori Eisenberg of real estate financial advisory firm One Ha’am told TRD. TheMarker and Israeli daily newspaper Calcalist reported first on Extell’s announcement. Following the announcement, TheMarker reported that bondholders were unhappy and disappointed. The bondholders held an urgent meeting Monday night to clarify the financing situation. “This shows just how challenging it is for even a leading developer to secure sizable financing,” Eisenberg said. “Loans of more than $100 million in New York are increasingly rare.”

The Extell tower is one of four gigantic projects in the works in the Two Bridges neighborhood. In total, more than 2,000 new apartments and close to two million square feet of new residential development are planned along the waterfront on the Lower East Side.

“Pre-Applications” Show 2100 Apartments, 1.7 Million sf Coming to Two Bridges Area

Lands End I residential building on South Street.

Lands End I residential building on South Street.

Documents obtained through a Freedom of Information Law (FOIL) request reveal preliminary plans for two new residential projects along the East River that would dwarf anything built on the Lower East Side in a generation or more.

Taken together, the buildings would add more than 2100 residential units and 1.7 million square feet to the Two Bridges neighborhood. That’s twice as many apartments and nearly the same square footage planned in the big Essex Crossing project, which is often referred to as one of the most significant real estate projects in New York City.

The FOIL request was submitted to the Department of City Planning by State Assembly member Alice Cancel, who has been collaborating with local residents concerned about over-development. While developers have acknowledged the existence of the projects in the past, we’re now getting our first real look at the potential scale of their plans.

The details are included in “pre-application statements” submitted to the city earlier this year. It should be noted that these documents only offer glimpses of developers’ early plans. Their proposals could change dramatically in the months ahead.

283 south street model

Here’s what the documents show.

In April, the Starrett Corp. submitted a pre-app for a parcel at 271-283 South St. (bordering Clinton Street). According to the document, the developer wants to put up a 60-story building with 741 apartments. The square footage would total around 620,000 square feet and would “utilize floor area from an adjacent tax lot.” Starrett indicated it planned to participate in the city’s inclusionary housing program, meaning there would be some affordable units. The project would border Lands End I, an affordable housing complex Starrett sold last year.

south street google earth

L+M Development and the CIM Group are making plans for the surface parking lot seen in the lower left on this Goofle earth image.

The pre-application statement for 260 South St. was filed in January of this year. L+M Development and the CIM Group (Two Bridges Associates LP) spelled out plans for a 1.1 million square foot building on a site now used for parking. There would be 1400 apartments, including 350 affordable units. The parking spaces, part of the adjacent residential building (Lands End II) would be relocated in a lower level lot. The document  states, “The proposed development would also enlarge the (existing) ground floor retail fronting Cherry Street and improve the open space amenities along Rutgers Slip.”  The proposed building would rise to 66 stories, or 718 feet.

Two other projects, Extell Development’s 80-story mega-tower and a 77-story rental building by JDS Development, will create about 1600 apartments in the immediate area. Local elected officials have asked  the Department of City Planning to put all of the proposals through the Uniform Land Use Review Procedure (ULURP). If the agency agrees, the local community board, borough president and City Council would be able to weigh in on the impacts in the neighborhood. Taken together, the projects would add 3700 apartments to a three-block stretch along the waterfront.

This morning, we contacted Two Bridges Associates about its upcoming development plans at 260 South St. A spokesperson said:

Our goals for this project include a number of meaningful community amenities and infrastructure improvements, as well as the preservation of existing affordable housing and the creation of new affordable housing. Planning for the project is still in the early stages. We look forward to sitting down with community stakeholders very soon to begin what we hope will be a productive, collaborative process over the coming year as our project undergoes environmental review.

As for the Starrett Corp., spokesperson Jordan Isenstadt told us:

The development of our site at South Street and Clinton Street is in an exploratory phase. While still in the very early stages of planning, our goal is to answer Mayor de Blasio’s call to provide affordable housing, strengthen the community and fulfill a long-standing desire to better utilize a site that has been earmarked for development for decades. We look forward to a transparent and collaborative process as our plans advance.

Meanwhile, Assembly member Alice Cancel said she is still reviewing the pre-application statements. The documents, she said, will allow the community to assess the developers’ plans and decide how to respond. “We need to map out a stretegy,” she added “to protect the neighborhood.”