A year after purchasing a trio of sites for $34 million, Kahen Properties has revealed what it expects to do with them.
Alex Kahen’s luxury development firm filed plans for a 24-story, 81-unit property at 1026 Third Avenue in Lenox Hill, Crain’s reported. The 273-foot-tall building will span roughly 100,000 square feet.
Kahen purchased the adjacent sites at 1020-1024 Third Avenue and 1026 Third Avenue a year ago, amassing the assemblage from two different sellers. At the time, however, Kahen appeared poised to hold off on any development until it could qualify for the 421a tax break.
Albany has failed to replace the expired tax break or extend the June 2026 construction deadline for projects that pre-qualified for it. However, experts say some luxury rental projects pencil out without 421a.
Ismael Leyva Architects is the project architect. The filing calls for retail space on the first floor, a gym on the fourth floor and banquet space on the top floor. It’s not clear how much the project is expected to cost.
Two of the three buildings on the site had a date with the wrecking ball after Kahen filed demolition plans in October. While 81 units are headed to 1026 Third Avenue, another 28 are expected for the remainder of the lot.
One potential obstacle for Kahen is the presence of a Chipotle at 1020 Third Avenue. The fast-food establishment is locked into its lease for another six years.
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Other developments for Kahen include the Mason, a 23-story luxury rental building at 145 Madison Avenue, where rents for the 70 units start at $4,000, and the 135-unit Adele at the intersection of East Houston Street and Avenue D.
Luxury rentals fit the market in Lenox Hill, where most of the real estate news involves glamorous townhouses. In April, billionaire investor Ron Perelman listed his home at 36 East 63rd Street for $60 million. One of the priciest home sales last year was a deal for two apartments owned by the late Paul Allen on East 66th Street. They went for a combined $101 million.
— Holden Walter-Warner