Posted Dec 12, 2011, 11:27 PM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
Posts: 57,043
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http://online.wsj.com/article/SB10001424...mod=WSJ_NY_RealEstate_LEADNewsCollection
Developers Launch Battle Of Brooklyn
By LAURA KUSISTO
December 12, 2011
Quote:
The battle to build Brooklyn's tallest tower is about to begin with two developers planning to break ground next year on residential buildings that will loom nearly 100 feet over any of their predecessors.
At the beginning of next year, Stahl Real Estate, a company with 60-year roots in the borough, will break ground on a 590-foot tower at 388 Bridge St. That would make it the borough's new tallest tower. But its reign could be short-lived. By late next year AvalonBay Communities Inc. plans to begin building its new Willoughby West project just down the street, which will rise 57 stories and 596 feet, adding 861 new rental units to the market.
Manhattan developers have competed for decades over who has built the tallest tower. Currently, for example, Extell Development Co. is building what will be the borough's tallest apartment building across 57th Street from Carnegie Hall, at 1,004 feet. Meanwhile, a venture of Los Angeles-based CIM Group and developer Harry Macklowe are planning a 1,300-foot building a few blocks away on Park Avenue.
Stahl's 388 Bridge St. "will become the tallest apartment house in New York City outside of Manhattan, rising approximately 600 feet, and 53 stories," says an early marketing document. The developer has spent years assembling air rights and designing the project. It recently cleared a final hurdle when it obtained a loan from a group led by M&T Bank, allowing the $265 million project to break ground in the first quarter of next year.
The tower at 388 Bridge was initially planned as a condo, but after the condo market went south a couple of years ago, Stahl is now hedging its bets and 234 units on the lower floors will be rentals, while 144 on the upper floors will be condos. AvalonBay's project is still in the planning stages and won't break ground until the latter part of next year, said Phil Wharton, vice president of development for AvalonBay. "Rents have recovered to the point where it's back where we thought there was going to be really strong demand for this," he said. Developers in rezoned areas of downtown can build essentially as high as they want, with certain setbacks and as long as they're able to acquire enough air rights from their neighbors. "You could literally build to the sky. The tower can literally go on forever and some of these guys are doing that," said William Ross, director of Development Marketing at Halstead Property.
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