Why 485x Works: A Real-World Look at NYC’s New Development Incentive
New York City has never been an easy place to build. Between high land costs, volatile property taxes, complex zoning, and political scrutiny, getting a multifamily project off the ground is a battle even in the best markets. When the long-running 421a program expired in 2022, it left a vacuum in the city’s housing pipeline. Developers hit the pause button. Projects stalled. And the city’s housing shortage worsened.
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Why 485x Works: A Real-World Look at NYC’s New Development Incentive
Lev Kimyagarov, Co-Founder and Managing Director of Development Site Advisors®, wrote an insightful article for Commercial Observer, arguing that NYC’s new 485x tax incentive is a crucial step forward for multifamily development. Replacing the expired 421a program, 485x offers longer abatements (up to 40 years), targeted wage rules, simplified affordability formulas, and alignment with zoning initiatives like City of Yes. It supports both small and large developers by reducing tax uncertainty and improving project viability. While not perfect, Kimyagarov sees 485x as a practical, politically viable solution to the city’s housing shortage.
Source: Commercial Observer
Trump Administration Takes Over New York Penn Station Revamp
The Trump administration has removed the MTA from leading the $7B Penn Station overhaul, placing Amtrak in charge under the Federal Railroad Administration. Transportation Secretary Sean Duffy cited MTA mismanagement and announced cost-cutting measures. Governor Kathy Hochul supported the move, saying it saves New York taxpayers $1.3B. The shift comes amid legal tensions over congestion pricing. Despite the change, MTA CEO Janno Lieber said the agency expects to remain involved, noting its key role in Penn Station's daily operations and recent upgrades.
Source: Bloomberg
Jim Walden’s 100-Page Housing Plan
Independent NYC mayoral candidate Jim Walden unveiled a detailed $20B/year housing plan aiming to produce up to 90,000 units annually. His proposal includes using city-owned land at no cost to developers in exchange for 5-year fixed rents pegged to 25% of borough AMI, plus 90% tax abatements and streamlined rezoning. Funding would come from new taxes on production and air rights transfers. Though innovative, the plan’s temporary affordability and generous developer incentives may face pushback from officials favoring permanent affordability on public land.
Source: The Real Deal
City Postpones Brooklyn Marine Terminal Redevelopment Vote Until June
The Adams administration has delayed a key vote on its $3.1B Brooklyn Marine Terminal redevelopment plan to mid-June, following pressure from officials and community groups seeking more review time. The plan includes up to 8,200 apartments, 30 acres of open space, modern port infrastructure, and commercial areas. Critics want more industrial use and less housing. The city pledged an additional $109M, matching a federal grant, if the plan is approved by July to avoid further delays and maintain shipping industry confidence.
Source: Crain's New York Business
Silverstein Dropped $3.7B Fed Funding Bid for 2 World Trade Center
Larry Silverstein has withdrawn his $3.7B application for a federal rail infrastructure loan to fund 2 World Trade Center, despite touting it as a smart strategy less than a year ago. The move, confirmed by the U.S. DOT, suggests complications or red tape, though Silverstein is reportedly pursuing alternative financing. Meanwhile, RXR and TF Cornerstone are seeking $4.8B through the same program for their 175 Park Avenue project. The withdrawal raises questions about the program’s viability under the Trump administration.
Source: The Real Deal
Media Mentions
Anthony Hu Acquires Development Site At 8 West 45th Street From Zohar Ben-Dov For $38.5M
The asset involved in this transaction is a development site located at 8 West 45th Street in New York. The transaction was finalized for a total price of $38,500,000.00. Anthony Hu acted as the buyer in this transaction, while Zohar Ben-Dov represented the seller, facilitating the deal's successful closure.
Hiwin Group Buys Vacant Lot at 8 West 45th Street for Residential Building
NEW YORK- Hiwin Group USA, a developer based in Flushing, Queens, has acquired a vacant lot in Midtown for $38.5 million, with plans to build a residential tower on the site
Three years later, Soho rezoning slow to spur development
NEW YORK — Mayor Eric Adams is pushing to dramatically increase housing construction in Manhattan. If the borough's last rezoning is any indication, it will be a heavy lift.
The Bridge, Radson pay $15.8M for 189-unit dev site in Inwood
The Bridge and Radson Development through the entity 3816 Ninth Avenue Housing Development Fund Co Inc paid $15.8 million to Manhattan Bible Church for the development site at 3816 9th Avenue in Inwood, Manhattan. The expected use is ground up development.
Prominent Queens developer plans pair of resi buildings at former Flushing pool site
The developer behind the tallest building in Queens has revealed his plans for the site of a former outdoor pool in Flushing.
North Flushing Pool Club Sells for $16M
Developer Chris Xu’s Corona-based real estate firm, United Construction & Development Group, recently acquired the North Flushing Pool Club site for $16 million. A limited liability company affiliated with Xu’s firm closed on the 0.8-acre property less than six months after brokerage firm Development Site Advisors began marketing it in March.
Iconic TITAN Closes Its Doors at 31st Street in Astoria Next Sunday
NEW YORK – It’s officially the end of an era for the historic Titan Foods supermarket as far as its current location is concerned, which is set to close its doors this coming Sunday, June 18. The news was officially announced by Titan Foods Inc. in a notice that was posted at the store to inform consumers.
Flushing's North Flushing Pool Club Site for Sale with Development Site Advisors
Midtown Manhattan based commercial real estate brokerage, Development Site Advisors® (DSA) have been exclusively hired to market 141-01 32nd Avenue, an impressive 0.83-acre property in the sought-after Flushing neighborhood of Queens, NY. The property is the site of the long-established North Flushing Pool Club, which has been in existence here for over six decades.
Maddd Equities buys Inwood waterfront dev site, leading midsize i-sales
An entity linked to Stylianos Aniftos and Astrit Skara picked up a development site at 26-37 30th Street in Astoria for $10.5 million from three separate LLC’s. Development Site Advisors’ Rubin Isak and Lev Kimyagarov brokered the deal. The 16,300-square-foot lot had been family owned for more than 50 years and consists of four adjacent lots on 30th and 31st streets between Astoria Boulevard and Newtown Avenue.
Building of Titan Supermarket in Astoria is Sold
With $10.5 million as the final price of the transaction, the well-known homegrown supermarket Titan Foods has been completed.
Queens’ top 10 neighborhoods for Q3 home sales
The top sale in the Astoria neighborhood was a two-story, 45-foot-wide house built in 1940 at 25-23 Newtown Avenue. It was sold for $4.8 million by Development Site Advisors, which marketed the property as either a residence or a redevelopment opportunity.
South Bronx piano warehouse hits the market
A 140-year-old piano factory in the South Bronx has hit the market for $11.5 million.
Recent Commercial Real Estate Transactions
This 13,116-square-foot vacant building in the Elmhurst neighborhood...
New firm looking to dominate development site sector
Veteran brokers Lev Kimyagarov and Rubin Isak are seizing opportunity during the coronavirus pandemic to direct their skills towards a niche market. The pair have formed a new firm, Develo...
Kimyagarov, Isak Open Development Site Advisors
Lev Kimyagarov and Rubin Isak, former senior directors at Massey Knakal Realty Services/Cushman & Wakefield and Eastern Consolidated, respectively, have formed Development Site Advisors, solely focused on th...
Development plummeted this year, but sector still shows signs of life
Sales of development sites in the city dropped 27% to 103 transactions so far this year, compared to the same period in 2019, according to an analysis by real estate firm Development Site Advisors...
New Brokerage Hopes To Carve Out Niche For NYC Development Site Sales
While major brokerage firms trim staff amid a stagnating market, a new development site brokerage firm, hoping to redefine how transactions get done within the asset class, has doubled in size since the sta...
Knakal, Eastern Consolidated Alum Launch Development Site Advisors
NEW YORK CITY—Lev Kimyagarov and Rubin Isak, former senior directors at Massey Knakal Realty Services/Cushman & Wakefield and Eastern Consolidated respectively, have launched Development Site Advisors.&nbs...
New Development-Focused Brokerage Looks to Grow Team
Two veteran New York City brokers have teamed up to form Development Site Advisors, a brokerage that focuses exclusively on development sites.
Kimyagarov and Isak open Development Site Advisors; focusing solely on development sites
New York, NY Lev Kimyagarov and Rubin Isak, former senior directors at Massey Knakal Realty Services/Cushman & Wakefield and Eastern Consolidated respectively, have formed Development S...
Ex-Massey Knakal, C&W, Eastern Consolidated Execs Form NYC Brokerage Focused on Development Sites
NEW YORK—Lev Kimyagarov and Rubin Isak, former senior directors at Massey Knakal Realty Services/Cushman & Wakefield and Eastern Consolidated respectively, have Development Site Advisors, the only firm in New York City with a sole focus on the development site sector.
New development to replace famous Mott Haven building
Third Avenue in Mott Haven is slated to look quite different in the near future.
Development Site Advisors Hired to Sell the Famed Beethoven Piano Factory Building in Mott Haven, Bronx for $11.5M
The Building, built for and once owned by J.L. Mott, the individual Mott Haven was named after.
Astoria Development Site Hits the Market at $9M
Development Site Advisors has been hired to sell 11-32 and 11-38 31st Ave. in the Astoria neighborhood of Queens. The two sites are combined from the rear, giving a developer multiple options. Asking price for the property is $8.8 million.
