Staten Island’s Waterfront Goes Vertical — With Timber
New York City is advancing a major redevelopment of Staten Island’s North Shore waterfront. The NYC Economic Development Corporation (NYCEDC) has selected Artimus and Phoenix Realty Group to construct 500 mixed-income housing units on two vacant parcels at Front and Canal Streets, with 25% of the units designated as affordable housing.
The project, part of the Staten Island North Shore Action Plan, will span 35 acres of land previously used as a U.S. naval base. The broader plan includes 2,400 new housing units, 20 acres of public open space, and a 600-seat public school, transforming the area into a vibrant mixed-use community. The first phase of the development, completed in 2016, delivered 571 units of housing.
Artimus and Phoenix Realty’s project, covering approximately 500,000 square feet, is poised to become the largest mass timber residential development in New York City and one of the largest in the nation. Mass timber, a sustainable construction material, is gaining popularity as a greener alternative to steel and concrete. NYC updated its building code in 2021 to allow timber structures up to 85 feet tall. The developers will also receive technical assistance from the NYC Mass Timber Studio, launched in 2023 to support sustainable construction projects.
Construction is scheduled to begin in 2027. The plan aligns with Mayor Eric Adams’ broader housing initiatives, including recent proposals for major developments in Coney Island and Downtown Brooklyn.
Conversions, Leasing, and Office Space in Manhattan
In the Financial District, a significant office-to-residential conversion is underway at 222 Broadway. Developers TPG Real Estate and GFP Real Estate are transforming the 31-story building into 798 rental apartments and 40,000 square feet of commercial space. The $43.6 million renovation includes re-cladding parts of the façade and adding a 40-foot extension, bringing the building’s height to 430 feet. Construction financing of $288 million has been secured, and completion is anticipated by May 2027.
Meanwhile, in Hell’s Kitchen, leasing at The Ellery, a 32-story building at 312 West 43rd Street, has reached full occupancy. Developed by Taconic Partners and National Real Estate Advisors, the property includes 330 residential units with modern amenities such as a rooftop pool, coworking spaces, and spa facilities. The building also features 41,500 square feet of retail space.
At One World Trade Center, The Durst Organization is marketing the 89th and 90th floors as office space for the first time. These floors, offering 46,000 square feet and 360-degree views, are being listed for approximately $160 per square foot—more than triple the average asking rent in Downtown Manhattan.
Market Activity: Luxury Sales and Development Velocity
The luxury residential market saw robust activity last week, with 36 contracts signed for Manhattan properties priced at $4 million or more, totaling $299 million. Among the notable deals was Barbara Corcoran’s Upper East Side penthouse at 1158 Fifth Avenue, which went into contract just one day after being listed for $12 million.
The priciest contract of the week was a $25 million penthouse at Madison House, located at 15 East 30th Street. This 5,100-square-foot unit includes 23-foot ceilings, a library, and a terrace. The second-highest sale was an 8,400-square-foot residence at 995 Fifth Avenue, listed for $24.3 million.
At 80 Clarkson Street, Zeckendorf Development and Atlas Capital Group have released pricing on additional units, bringing the projected sellout value to $900 million. The most expensive unit currently listed is priced at nearly $47 million, achieving over $9,100 per square foot. Brokers report strong demand and minimal discounts, suggesting the final sellout could approach $2 billion.
Commercial Loans, Refinancing, and Pre-Foreclosures
In Lincoln Square, the retail condo at 1880 Broadway, located at the base of 15 Central Park West, received a $125 million refinancing package. Fortress Investment Group, Global Holdings, Zeckendorf Development, and Madison Capital were involved in the deal. The loan extended debt originally issued in 2012. A pre-foreclosure suit filed in March 2023 was resolved through a settlement, as court records indicate.
Elsewhere in the Financial District, a $70 million loan tied to the retail condo at 170 Broadway is reportedly in default. The property, owned by Crown Acquisitions and a Morgan Stanley Real Estate fund, has The Gap as its tenant under a lease running through 2030. A pre-foreclosure action was filed last week by the special servicer representing bondholders.
In NoMad, Jan Soleimani, founder of the Bokara Rug Company, and his partners purchased interests from other investors in the office building at 276 Fifth Avenue for $62 million. The property, with more than 133,000 square feet of space, also includes additional air rights.
Legal Update: Schuster Out on Bond
Josh Schuster, former head of Silverback Development, has been released on a $2 million bond after being arrested on federal fraud charges. Schuster is accused of stealing over $10 million from investors between 2018 and 2022 in what prosecutors have described as a Ponzi-like scheme. Allegations include using funds for personal expenses, gambling losses, and unrelated business costs.
Schuster faces up to 20 years in prison for each count of wire fraud and securities fraud. Additionally, the SEC has filed a civil complaint seeking the return of alleged "ill-gotten gains" and penalties. Financial troubles at Silverback were first reported in 2021, leading to Schuster’s removal from several projects.