Bruce Eichner’s Continuum files plans for 137-unit condo tower in Grand Central

Bruce Eichner’s Continuum Company submitted a new building construction project for a 137-unit, 172,797 square-foot residential (R-2) building at 34 East 35 Street in Grand Central, Manhattan. The plan was filed on June 13, 2024. It calls for the construction of a 191-foot tall, 18-story building and was filed with the New York City Department of Buildings under job number M01062289. The architect is SLCE Architects. The project is described in the filing as: herewith filing new mixed-use building as per plans. Published reports indicate this will be a condominium building, but the condo plans have not yet been filed.

The development is planned for five parcel from 26 to 40 West 35th Street long-owned by the Community Church of New York, which agreed to sell to Continuum Company for $70.97 million, according to a contract signed October 20, 2021.

This project, like most large developments in New York City, has been in the works for many years. The Real Deal reported in late 2021 that Bruce Eichner signed the contract to ground lease then later purchase the parcel from the church.

Then in May 23, 2022, the parties amended the contract, shortening the ground lease period from up to seven years to just two years, with the closing to occur two years after the New York State Attorney General and a state court judge confirmed the sale, as required under state law for the sale of nonprofit or religious assets, instead of after the property was completed. [p 187 ]

The court approved the sale on July 28, 2022, with the price $70.97 million. A congregant then filed an appeal, but that was denied. The Continuum Company entity that is buying the property is 26 East 35th Street LLC, with Ian Bruce Eichner signing on behalf of Continuum. The city has not yet published records of the sale in property records.

The net present value according to the sale agreement was $69.08 million, even as the total purchase price was $70.97 million, because the deal was structured over time, the contract says. The contract identified Newmark [p. 188] as a brokerage on the deal as well as Geoffrey Newman of Savills, and also said the total amount paid in brokerage commission would be $2 million.

34 East 35th Street, Job M01062289

Contract Amendement p 186

Offering memo from Newmark p. 300
Purchase price calculations p. 363

Zoning Square Footage:

Existing property zoning square footage: 164,168
– Air rights available from 24 East 35th Street (“24 Air rights”): 10,988
-Air rights available from 22 East 35th Street (“22 Air Rights”): 9,619
-Sum of the foregoing Zoning Square Footage: 184,775
Price Per Square Foot being paid by Developer: $378
Gross Purchase Price based on Zoning Square Footage: $693844,950

The sale agreement says that the church would buy development rights for $150 per square foot from 24 East 35th Street and may buy the development rights for $104 per square foot from 22 East 35th Street, and then the church would sell those rights to Continuum for $378 per foot, pocketing the difference.

The neighborhood

In Grand Central, The majority, or 83 percent of the 43.5 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Grand Central has near average sales volume among other neighborhoods with $646.2 million in sales volume in the last two years and is the 12th highest in Manhattan. For development, Grand Central has near average amount of major developments among other neighborhoods and is the 8th highest in Manhattan. It had 4.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 11 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 10 commercial properties representing 197,657 square feet of the 278,829 square feet. The largest owner is Community Church Of New York, followed by Erica Lerner and then Hilson Management Corp.. On the tax block, there was one new building construction project filed totaling 172,797 square feet. It is a 137-unit, 172,797 square-foot residential (R-2) building submitted by Jeff Loveland with plans filed June 13, 2024 and it has not been permitted yet.

The surrounding

Within a 400-foot radius of 40 East 35 Street, PincusCo identified five commercial real estate items of interests occurred over the past 24 months. Of those five items, two were sales above $5 million totaling $75.9 million. The most recent of the two was Four Winds Real Estate, Alan Lerner, Erica Lerner, and Elynn Lerner which bought the 106,153-square-foot, 111-unit rental (D8) on 47 East 34th Street for $68 million from Morgenstern Capital and H.I.G. Capital on May 24, 2024. Of those five items, three were loans above $5 million totaling $114.2 million. The most recent of the three was Four Winds Real Estate, Alan Lerner, Erica Lerner, and Elynn Lerner in which borrowed $53.8 million from Affinius Capital secured by the 106,153-square-foot, 111-unit rental (D8) on 47 East 34th Street on May 24, 2024.

Direct link to the property’s ACRIS page and link to DOB NOW portal.