The real estate-related favors alleged in the Ulrich indictments involve cutting red tape for projects big and small.
The charges against former Department of Buildings commissioner Eric Ulrich were revealed last week, detailing allegations of accepting or soliciting $150,000 in bribes in exchange for, among other things, helping friends and associates advance their project approvals.
There are various real estate-related allegations, but I wanted to take a closer look at a couple of the projects named in the charges.
In April 2022, developer Mark Caller told Eric Ulrich, who was about to be appointed head of the DOB, that if they did not get a rezoning for 155 Beach 115th Street, he would risk “losing a tax abatement for the property,” according to the indictment against Caller and Ulrich. The indictment, of course, was referencing the 421a tax break, which lapsed two months later on June 15, 2022. A rezoning application for the site was first submitted in 2018, but failed to move forward.
Caller’s Marcal Group appears to be marketing the site as 421a eligible because it has foundation footings in place.
Ulrich is accused of influencing the DOB and fire department to inspect a building for low-income residents next door, in hopes of shutting down the property. In return, Caller allegedly provided Ulrich a discounted apartment in one of his buildings.
Then there is expeditor Paul Grego, who prosecutors allege asked Ulrich to intervene to help secure a temporary certificate of occupancy at 164-41 97th Avenue in Queens. The home is owned by members of the Russo family, of the Villa Russo Catering, a Queens venue where Ulrich spent $14,167 related to fundraising in 2019, according to the New York Post.
Grego is accused of providing Ulrich with a painting by Francisco Poblet, the last surviving apprentice of Salvador Dali, as well as a “bespoke suit” — that description is from prosecutors, not me.
The Department of Buildings lists the address for another Russo restaurant/venue, Russo’s on the Bay, where Ulrich reportedly held his election night party in 2019, as the contact for Grego’s license as a filing representative (a somewhat fancier term for expeditor). The indictment notes that Grego also goes by Dominick Russo.
Ulrich, Caller, Grego and the other defendants named in the indictments all pleaded not guilty last week.
What we’re thinking about: How much will Marathon Asset Management bid on Signature Bank’s commercial real estate loan book? Send a note to kathryn@therealdeal.com.
A thing we’ve learned: The Department of City Planning certified 165 development projects during fiscal year 2023, according to the latest Mayor’s Management Report. That’s a 32 percent drop from the previous year’s 244 certifications. The report points to a drop in the number of private applications received by the agency, in part a result from the absence of the property tax break 421a. But the report notes that “the number of projects in DCP’s pipeline has begun to increase again, so it is expected that certifications will increase in Fiscal 2024.”
Elsewhere in New York…
— Last week, the mayor ordered city agencies to cut their budgets by 5 percent to help pay for services for migrants, but progressive members of the City Council say the cuts go too far, Gothamist reports.
“How many schools does Mayor Adams want to close? How many fire stations does Mayor Adams want to close? How many hospitals does Mayor Adams want to close?” asked Brooklyn Council member Lincoln Restler during a rally outside City Hall.
— In the latest sign that relations between the two are a bit chilly, Mayor Eric Adams has no plans to meet with President Joe Biden while he is in NYC, Politico New York reports. The move comes after mayor has criticized the president for not doing more to help the city address the migrant crisis. “It just means that the two of them are trying to avoid exacerbating an already tense situation,” a City Hall adviser told the site.
— Meanwhile, Prince William waded into the East River to learn about oysters.
Closing Time
Residential: The priciest residential closing Wednesday was $36 million for a condo at 443 Greenwich Street in Tribeca.
Commercial: The most expensive commercial closing of the day was $7 million for a building where Rite Aid is a tenant at 1091 Ogden Avenue, the Bronx.
New to the Market: The priciest residence to hit the market Wednesday was a condo at 240 Riverside Boulevard in Lincoln Square asking $38 million. One and Only Realty has the listing.
Breaking Ground: The largest new building filing of the day was for a 32,000-square-foot, eight-story, mixed-use building with 23 units at 14-27 Broadway in Queens. Arc-Hi-Tect Associate Inc. filed the permit application.