Astoria has had a very busy year in real estate. While there was concern regarding the direction the market would take, there has been a lot of action in development sites trading. The expiration of the 421a tax abatement and rising interest rates were a curveball but did not deter developers from acquiring and building. As of October 2022, 75 new building permits have been filed and 28 have been approved. Developers are eager to get their projects off the ground and it is evident by the numbers.
There has been activity on 25-foot frontage development sites. With the sale of 23-14 31st street, which we sold for $1.875M or $151/zfa and 23-26 Broadway which sold for $1.85M or $220/zfa, it is evident that boutique-like sites are in demand along with larger development sites. The appeal of a smaller building for some is the intimacy of knowing all your neighbors and having that sense of a community. Another recently completed boutique site in Dutch Kills, 27-10 37th Avenue is ready to launch. Standing at 9,770 square feet, this 6-story, 11-unit property is sure to be a great addition to the area.
In the pipeline for boutique real estate is 14-47 Broadway, which has filed for permits for a 9-story mixed-use building. It is a proposed 84-foot-tall development which will be a 12,098 square foot building. Included will be 11,760 square feet providing 17 residential units and 338 square feet of commercial-use space. Another near-completed building is 15,550 square feet of space at 23-09 Broadway. The development site was sold for $3.05M or $196/zfa in 2018.
On a larger scale, permits have been filed for a 13-story mixed-use building with affordable housing at 44-01 Northern Boulevard, located at the former Major Chrysler/Dodge dealership. Silverstein Properties is listed as the owner behind the applications for this proposed 145-foot-tall development. It will yield 302,852 square feet. 287,264 square feet will be used for residential and 15,586 will be utilized for commercial space. 156 enclosed parking spaces will also be provided. Some more recent residential site transactions that are worth mentioning are 25-23 Newtown Ave. which we sold for $4.75M or $210/zfa; 27-16 21st St. sold for $7.7M or $229/zfa; 30-55 Vernon Boulevard sold for $25M or $262/zfa.
Not only is residential development active in Astoria. There is a community facility on the horizon. The construction of a new planetarium in the Boys and Girls Club on 21-12 30th Road is in the works. Revealed by New York State Senator Michael Gianaris, they are planning to renovate the sites existing building. $1M was awarded to the team to fund the construction of the project which is expected to open in 2026.
New York City has been facing a housing crisis caused by a lack of supply. To tackle the projected population growth and current lack of housing, over half a million apartments must be built by 2030. One of the main factors that has limited housing production is cost. With inflation on the rise, the cost of acquisition and building has been higher than ever. Government financial tools are needed to give developers incentives to build affordable housing.
Even in our current times of uncertainty, global conflicts, a volatile stock market, high inflation and rising interest rates, Astoria real estate development is still going strong.