In Kips Bay, A 23-Story Building Will Rise On East 33rd Street

KIPS BAY, NY — A 23-story building with 160 apartments will rise in Kips Bay, according to permits filed with the city.

Excel Development is in the works of re-developing four walk-up buildings in the neighborhood to erect a 23-story building on East 33rd Street between First and Second avenues.

The structure is expected to have 160 apartments, Department of Buildings records show.

About 40 below-market-rate units are also expected, according to City Planning documents from last year's public review process for the building, which required a zoning change.

GF55's Shay Alster is the leading architect behind the residential building at 339 E. 33rd St. It will have about 8,800 square feet of commercial space, Department of Buildings records show.

Michael Heletz of Excel Development filed permits to demolish the existing buildings back in 2016. In spring of 2017, Heletz under the limited liability company 33rd Street Acquisition filed for the zoning changes.

The application winded its way through the city's review process with disapproval from Community Board 6 and Manhattan Borough President Gale Brewer, who wanted more affordable units. Brewer was also concerned about existing tenants' displacement and how the buildings were emptied out for demolition and re-development.

A representative for the developer told City Planning the developer would pay for moving expenses and rent subsidies during construction, as well as negotiate below market rent to relocate existing rent-regulated tenants into the new building once it is complete, city documents say.

The building was ultimately given the greenlight by City Council.

Another four-story building on the block sold air rights to the developer, PincusCo reported. The air rights will allow for a portion of the new building to be built over the smaller building, at 337 E. 33rd St., city documents say.

Heletz did not immediately respond to comment.