the developers are moving forward without the extra air rights and the board now has to take out a new loan. woops I’d sell if I lived there.
Developers of the former Bialystoker Nursing Home site on East Broadway aren’t interested in a revote at the Seward Park Co-op on the sale of air rights.
In June, about 58% of the apartment owners voting in a referendum supported the sale of 162,000 in development rights for nearly $54 million to the Ascend Group and Optimum Asset Management. But under the co-op’s by-laws, two-thirds were required to vote in favor for the referendum to pass, and Seward Park did not meet that threshold.
A group of shareholders later launched a petition drive, which called for a new vote. In a notice sent to residents late last night, the Board of Directors reported that more than 25% (422 shareholders out of 1600) called for a special meeting to reconsider the air rights issue. As a result, the board was poised for a second referendum. But the developers have said, “No thanks.”
The buildings, constructed in 1960, face at least $12 million in mandatory maintenance projects. The proceeds from the air rights sale would have been used to finance those projects, pay down the co-op’s debt and to replenish emergency reserves. In the absence of that $54 million pay day, the co-op is refinancing its mortgage. The board memo stated, “We plan to close soon on the 60 million dollar loan.”
what now will be!
Instead of two new towers in the Lower East Side, Round Square Development — formerly known as the Ascend Group — now plans to build one and convert an adjacent landmarked nursing home into a condominium building.
Round Square seeks to construct a 28-story, 55-unit condo building at 232 East Broadway, and to renovate the former Bialystoker nursing home at 228 Broadway by creating 18 condo units, said Rob Kaliner, president of Round Square. The developer has not yet filed plans for the project with the city Department of Buildings.