Chrystie Street Lot Sold for $50 Million; Building Plans Approved
The empty lot at Chrystie Street has finally found an owner. Boutique hotelier Ian Schrager bought the empty lot on the lower east side of New York along with developer Steve Witkoff and a few other investors for about $50 million last week.
The site served the purpose of a garden for low-income tenants of nearby apartments. However, Schrager is bent on building a 25 story building to fill up the place. The first 17 floors of the construction will be used for commercial purposes while the remaining floors will be rented out for residential usage, reported Curbed.com.
The new building will be the highest tower in the neighborhood. Sources familiar with the building plans said that Schrager has plans for a new hotel, set to serve the well-to-do but will however be less expensive than the other boutique hotels, reported Wall street journal.
Schrager bought the site from the owner, Rubin Schron who also owns the neighboring construction, 10 Stanton street. Approval from the government in order to build in the empty lot came with a little struggle.
Schron won the support of 10 tenants by offering them a deal of extended affordability benefits with rental subsidies. He also offered to build a roof top recreation area. The local community board then agreed to grant the much awaited approval.
"The board stands by its approval and believes it is consistent with case law, prior board decisions and the board's rules of practice and procedure." Jeffrey Mulligan, executive director of the city agency, told WSJ.
Schrager is renowned for co-founding the nightclub "Studio 54" and conceiving many high class hotels like Morgans Hotel. He also redid the Gramercy Park Hotel.