Plans for a development company to buy the air rights from a Lower East Side co-op so it can build two large condo towers were recently dealt a serious blow.
Crain's New York Business reported that the Seward Park Cooperative rejected a $54 million deal from developer Ascend Group, after the co-op board fell short in getting the required 2/3 majority votes from the shareholders necessary for the sale.
Ascend Group purchased the former Bialystoker Nursing Home at 228 East Broadway in 2016 for almost $50 million. The plan was to build two condo towers – one reaching 22 stories, and the other 33 stories -- on either side of the Bialystoker building, according to Curbed. The plan hinged on Ascend's being allowed to purchase 162,000 square feet of air rights.
With this setback, Ascend will instead proceed to construct two condo towers at a smaller scale of 17 and 20 stories each, reported The Real Deal.
The Seward Park Co-op board had favored the deal, since the money from the air rights sale would have paid for major renovations to the building, including new elevators and balcony repairs. The transaction would have also kept maintenance fees from going up for the building's residents.