Kevin Maloney and Kamran Hakim purchased a site at 29-37 41st Ave., next to a Long Island City clock tower building in Queens Plaza. They poured about $750 million into acquiring the site but decided to sell it to the Durst Organization for $173.5 million for several reasons.
Maloney told The New York Times that “we didn’t have the horsepower to get it done.”
He told the publication that his acquisition loan was due soon and that he was not able to get a construction loan unless he put in more equity. He decided to sell the property. The building was dubbed Queens Plaza Park and would have included amenities such as a pool and a health club. Maloney is still working on a 45-foot tower in the neighborhood.
“There’s no denying the high-end market has slowed down,” he told the New York Times. “The good news is that land prices should start coming down.”
The Durst Organization said they would look to build a rental tower about the same size as the original plan, which was 914 feet.
Another tall tower is planned for Long Island City and this one would span 984 feet, making it “supertall” according to the Council on Tall Buildings and Urban Habitat. Flushing-based developer Chris Jiashu Xu filed plans in February to construct the City View Tower at 23-15 44th Dr.
Ross Moskowitz, a real estate partner at Stroock & Stroock & Lavan, told The New York Times that factors like the expiration of a tax abatement program 421-a and rising interest rates have forced some developers to sell off their sites or bringing on new partners.