Does it make any financial sense to develop a 25x90 lot in Chelsea?

I am trying to figure out if the rundown 2 story building next to my apartment in mid-Chelsea is likely to get torn down and renovated any time soon (blocking my lot line windows). Our Board President said the chance of anyone trying to develop that property is extremely low. The lot is 25×90 and can only go up six floors per DOB code. Both buildings on each side are also 6 stories, so the only windows would be facing North and South. Also, residential buildings in this zoning area need a 30 foot rear yard, so the exterior dimensions could be no larger than 25×60 (interior probably closer to 22×57). Since the building will likely also need an elevator and code compliant stairs, our Board President believes it is not financially attractive to develop this site as each floor would have a relatively small foot print. That being said, I don’t know the current development environment. As a novice, it seems to me that any time a property can be improved in the city, someone will do so and will maximize the square footage in the process.

Any words of wisdom?

mzmisdacutljvesg

in General Discussion 9 years and 11 months ago

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espeon | 9 years and 11 months ago

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Developers favor certain formulas and this lot may not be an ideal lot for them but it would be great for an owner who wants to invest in a private house instead of a multi-million apartment.

daveinbedstuy | 9 years and 11 months ago

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In this market I bet it gets done.

xchx | 9 years and 11 months ago

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That is a normal lot size for a townhouse – a townhouse in Chelsea could be worth $5-10mln. of course it makes sense to build one. but some people hold on to lots for years, waiting for the price to go up.

boredatwork | 9 years and 11 months ago

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It depends on the selling price, of course. But the footprint is no smaller than a large Brooklyn brownstone. And a developer can always appeal to the BSA to override zoning if it prevents him from making a “reasonable return.”