City alleges $3.6M Hudson Yards vacant lot fronting High Line is health nuisance

The City of New York alleges that a small but valuable corner vacant lot in Hudson Yards that has a city-designated market value of $3.6 million is a health nuisance, alleging that it is conducive to or in fact is harboring rats. The city filed a suit alleging the health violation and is seeking an order allowing it to enter the property to clean it up and abate or exterminate any rodent population.

The 327 10th Avenue parcel, at the intersection of 29th Street and 10th Avenue, has frontage of 24 feet and is 100 feet deep with a total lot size of 2,470 square feet. Its western end fronts on the High Line. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.6 million.

The development lot in Chelsea has zero square feet of built space and 24,700 square feet of additional air rights for a total buildable of 24,700 square feet according to PincusCo analysis of city data. The analysis does not take into consideration air rights transfers. The property is owned by Peter J. Filiberto Trustee.

The parcel is adjacent to the Lalezarian Properties, 372-unit rental building at 509 west 28th Street.

According to city public data, the property has received $600 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property since September of 2020.

On this tax block, PincusCo has identified the owners of eight of the 12 commercial properties representing 775,908 square feet of the 1,075,434 square feet. The largest owner is Eight Points Asset Management, followed by PPHE Hotel Group and then Anastasios Tzezailidis. There are three active new building construction projects totaling 377,249 square feet. The largest is a 372-unit, 309,463-square-foot R-2 building developed by David Sani with plans filed February 17, 2012 and permitted January 29, 2015. The second largest is a 19-unit, 55,447-square-foot R-2 building developed by Cary Tamarkin with plans filed February 25, 2015 and permitted August 9, 2016.

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

Over the past five years, there has been no NYC Department of Buildings new building, demolition, or alteration permit application valued at more than $20,000 filed for this parcel.

Within a 400-foot radius of 327 10 Avenue, Pincusco identified six commercial real estate items of interests occurred over the past 24 months. Of those six items, five were sales above $5 million totaling $68.3 million. The most recent of the five was High Line Place LLC which bought one condo unit in the 41-unit mixed-use building (RM) on 520 West 28th Street for $12.5 million from Related Companies on May 6, 2022. One of those six items was a loan which Churchill Real Estate Holdings borrowed $44 million from Square Mile Capital Management secured by the 49,375-square-foot, 60-unit rental (D3) on 517 West 29th Street on February 1, 2022.