A year after purchasing three parcels of land for $34 million, Kahen Properties has revealed how it expects to use them.
Alex Kahen’s luxury development firm has submitted plans for a 24-story, 81-apartment building at 1026 Third Avenue in Crain’s Lenox Hill report. The 273-foot-tall building measures approximately 100,000 square feet.
Kahn purchased the adjacent lot at 1020-1024 Third Avenue and 1026 Third Avenue a year ago from two different sellers. At the time, however, Kahn appeared prepared to delay any development until it became eligible for the 421a tax break.
Albany failed to replace expired tax credits or extend the June 2026 construction deadline for projects already eligible for tax credits. Experts say, however, that some luxury rental programs have been wiped out without a 421a.
Ismael Leyva Architects is the architect for the project. The document called for retail space on the ground floor, a gym on the fourth floor and banquet space on the top floor. It was not immediately clear how much the project was expected to cost.
After Kahn submitted plans for demolition in October, two of the three buildings on the site had dates with wrecking balls. While 1026 Third Avenue will have 81 units, the rest of the lot is expected to have 28 units.
One potential hurdle Kahn faces is the Chipotle restaurant at 1020 Third Avenue. The fast food restaurant’s lease was locked for another six years.
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Other Kahen developments include Mason, a 23-story luxury rental tower at 145 Madison Avenue, with 70-unit rents starting at $4,000, and the 135-unit Adele at East Houston Street and Avenue D.
Luxury rentals fit the market in Lenox Hill, where most real estate news is about charming townhomes. In April, billionaire investor Ron Perelman listed his home at 36 East 63rd Street for $60 million. One of the most expensive home sales of the past year was the sale of two apartments on East 66th Street owned by the late Paul Allen. Their combined price was $101 million.
— holden walter warner
