Cove Property Group submits plans to demolish 5 buildings in Hudson Yards ahead of tower plan

Cove Property Group submitted demolition applications for the demolition of five buildings on four tax lots. The properties are two buildings on 413 Ninth Avenue, 415 Ninth Avenue, 419 Ninth Avenue and 421 Ninth Avenue. The plan was filed with the New York City Department of Buildings on December 13, 2022 under job number 123915843 and others.

Kevin Hoo’s Cove acquired control of the properties through several complex lease transactions. In April Cove submitted a plan seeking 25,000-square-feet of Hudson Yards District Improvement Bonus floor area to construct a 178,122-square-foot mixed-use building at 413-419 Ninth Avenue in the Hudson Yards neighborhood of Manhattan. It is possible the plans have changed since then.

A ground sublease was acquired from Hornig Capital Partners valued at $57.6 million by Cove Property Group on July 7, 2022.

The neighborhood

In Hudson Yards, The majority, or 83 percent of the 41.1 million square feet of commercial built space are office buildings, with elevator buildings next occupying 9 percent of the space. In sales, Hudson Yards has near average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 13th highest in Manhattan. For development, Hudson Yards has near average amount of major developments among other neighborhoods and is the 15th highest in Manhattan. It had 2 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the 13 commercial properties representing 669,446 square feet of the 699,084 square feet. The largest owner is Sl Green Realty, followed by Olshan Properties and then Cove Property Group. On the tax block, there were two new building construction projects totaling 60,927 square feet. The largest is a 24-unit, 48,110 square-foot residential (R-2) building submitted by Port Authority of New York and New Jersey and filed by Andrew Lynn with plans filed September 17, 2015 and permitted November 23, 2015. The second largest is a 12-unit, 12,817 square-foot residential (J-2) building submitted by James Papaionnou with plans filed November 7, 2007 and permitted February 18, 2016.

The surrounding

This is the first commercial real estate event of interest identified within the 400-foot radius of 417 9 Avenue in the past 24 months.

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