LIC’s waterfront River East Condos still showing signs of life under ice
Iced up River East Condos lot earlier this winter, 44-02 Vernon Blvd, LIC
Long Island City real estate development rumors flaring up again. The latest off the press is the huge expected sale of a $32.5M note on the now gaping, flooded, and (as of this winter) frozen construction site at 44-02 Vernon Blvd in LIC. Read: condo projects on the site of the former East River Tennis Center, dreamed of since the 1970s, are finally going forward – potentially. The plan for these so-called River East Condos calls for a total of 910 units in two 28-story towers and four 8-story buildings on the six-acre Hunters Point waterfront site.
Aerial view of future River East Condos site at 44-02 Vernon Blvd, LIC
Via The Real Deal:
“Just half the project will begin this year following the recent securing of $241 million in construction financing [...] The foundation construction on the northern portion of the development, with one of the tall towers and one of the short ones with a total of 561 units, will begin in June or July [...] So far, the development has cost about $50 million, including demolition, environmental and permitting work [...] Vernon Realty bought it in 2003 for $26 million, city records show.”
The stalled site has also become a safety issue with 7 violations and $4,950 in penalties, some of which has been paid off. A full stop work order was issued in Nov ‘09, and the site was also slapped with an Environmental Control Board violation after the abandoned excavation was flooded – although the developer says it will be drained when weather permits. They’ll also have to wait until it thaws…
I’m not so sure that no one is buying. Quietly inventory is moving – not at the volume and not at the prices that they were in 2007, but good buildings in good locations that set their prices right continue to move their inventory.
True #2, but I somehow doubt these developers can get the money to develop this location with decent pricing. It’s a decent walk to any subway from there and there is no retail except LIC Bar or near the E,V,G subway on 21st and that area ain’t booming either right now.
The article says that they secured $241 million in construction financing. The subway situation is less than desirable I agree, but no more or less than other locations in the city. If they are smart they would look for ways to try to connect that site with the Rockrose QW develpoment taking place to the south.
There’s a huge amount of space between this development and the TF Cornerstone (they’re not Rockrose anymore at this location) project.
Plaxall owns virtually everything between these 2 locations and they’re waiting for the TF project to come together, which is stalled due to more cleanup efforts.
That’s another reason I think this project won’t go over so well. The Plaxall deal is going to block potentially a lot of the views south towards the city.
If the developer is looking to hold this project for the long term than it might be a good deal for them. They get to build it today when construction costs are low and rents are doing okay. However, they will have to hold it for at least 10 years to see any healthy returns and this is not unusual for certain investors.
I personally would rather see Durst develop it as they are a top tier developer in the city and they have built beautiful buildings like the new BofA tower.
Best views of the city from this spot would be to the west, not south. I guess whether Durst is involved or not depends on whether the owner can actually pay back the note. Seems like a tall order, but who knows.
One big problem, The land is gone! can’t you see from the photo, that the land is gone! How can you build on a site where the land is gone! Meanwhile our tax dollars will pay for repairs to the board of Ed building next door. This land was sold back and forth between the sports facility in some weird deal for $2. and we have been out the most amazing facility for 9 years? while the land has been eroded by a developer who didn’t know how to re-mediate? The plans are the same from 9 years ago. He was trying to get 32 million 9 years ago and flip the project. Nothing has changed except their is no land on half of the site to build the project.
They destroyed a magnificent sports club–the best thing about living here in the summer, and while it was clearly mismanaged, it should have been a total gold mine. It had it all–a gym, great outdoor pool, a couple dozen tennis courts, two bars, and a restaurant right at the river with a killer view, never crowded except on rental occasions, and all hidden away from the street, and it was affordable…and they even had a discount for, you guessed it, townies. Still sad.
The fact that is had all that and was never crowded tells you why it was sold.
Who are you people? The site is closer to the E and V train than any of the existing or proposed RockRose/TF Cornerstone apartments are to the 7 train.
Looks like the land is priced at $30 per square foot. The current LIC developments were built on land that sold for $150-$200 per square foot. Have rents dropped so much that this wouldn’t work financially? I certainly haven’t heard that construction prices are rising lately.
more development = more services = improved quality of life for everyone
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When pigs fly. I’m all for LIC developing and this particular site being worked on, but it’s a disaster. Who will they sell to? No one is buying, much less in this area.