Controversial Upper East Side Development Site Sells for $98 Million

UPPER EAST SIDE, NY — The site of a planned 950-foot Super Scraper on the Upper East Side has changed hands for about $96 million. The site, which spans three lots on East 58th Street between 1st Avenue and Sutton Place, was sold to Gamma Real Estate during a foreclosure auction, the Real Deal reported.

Gamma Real Estate was able to scoop the actual site up for around $86 million, but paid an extra $12 million to secure air rights, the Real Deal reported. Gamma had always had a stake in the site, as they loaned the developer Joseph Beninati $147 million to assemble the three-lot site. In February Beninati filed for bankruptcy to prevent Gamma from foreclosing.

The planned 113-unit, super-tall luxury condominium building drew ire of neighborhood residents and elected officials who put in motion efforts to stop its construction. It's currently unknown what Gamma plans to do with the site.

The Department of Buildings (DOB) issued an order to stop work on the demolition of three existing 5-story buildings at 428, 430 and 432 East 58th Street because safety measures have not been put in place to protect tenants living in the adjacent 426 East 58th Street, according to DOB files.

The stop work order was issued following an audit request from City Councilman Ben Kallos, the Wall Street Journal reported. Kallos told the Journal that the developers had requested an application to stabilize 426 East 58th Street in order to complete demolition on the adjacent three-buildings.

The proposed 950-tower and other supertall developments have prompted Kallos to start a petition to "stop super-scrapers" and preserve the Upper East Side's neighborhood character. The petition has garnered nearly 400 signatures.

Photo of building site in 2014 via Google Maps street view