‘D’ Is For ‘Development’? Another Luxury Rental Building For Avenue D

photo-291Daniel Maurer 55 Avenue D

A developer said to own multiple East Village properties has purchased four adjacent lots at the corner of Avenue D and East Third Street, with plans to tear down the existing buildings and replace them with 80 residential units. The news comes as a broker for another new building on Avenue D confirms that Kim’s Video plans to open a pizza parlor there.

Rash LLC, which bought 53 Avenue D in 2007, has now spent $3.6 million to acquire adjacent plots at 55 Avenue D and 746-748 East Fifth Street, according to the broker who closed on three of the properties, Tamir Daniel of Daniel T Enterprises (the fourth was acquired in foreclosure proceedings). Mr. Daniel said the developer, which owns “a lot of rental buildings in the East Village,” is seeking approval for a building that would boast a gym, roof deck, outdoor areas, and studios as well as 1-, 2-, and 3-bedroom apartments.

The corner is currently home to the Lora Deli, where a mural was painted by schoolkids in May.

Citing a luxury rental building planned for Avenue D and East Second Street as well as a plot for sale between Sixth and Seventh Streets, Mr. Daniel said change was finally coming to an avenue that has seen relatively little of it over the years. In the meantime, he didn’t think upscale renters would balk at the idea of living amidst public housing, bodegas and Chinese takeout joints. “I have no concern about filling out the units over there,” he said. “I believe Avenue D is going to be a beautiful area to live.”

101 avenue dNicole Guzzardi 101 Avenue D

Earlier this month, a representative of the Arabella 101 told Curbed that units in the complex, which start at $2,400 for a studio, were 50 percent leased. Friday, the site posted a slideshow of the building’s roof deck and rental units.

Mr. Daniel believed Rash’s new building – which, like the Arabella 101, is expected to include affordable housing units under the city’s 80/20 program  – would be a boon for the neighborhood’s existing residents. “When the community of projects across the street sees the new movement and development on Avenue D I think it’s going to be beneficial to them,” he said. “I think they’ll see something refreshing and new coming to the neighborhood.” He expected the new rentals to “bring a – I don’t want to say ‘quality’ tenant, but you know what I mean: probably more educated, or students. It will probably create a new happening for that specific vicinity.”

Meanwhile, as The Local reported last week, Kim Yongman, the owner of Kim’s Video and Music, plans to open what he called an “alternative and interactive” pizzeria and wine bar in the ground floor of the Arabella 101.

Drew Spitler, director of development at Besen Retail, confirmed that Mr. Kim is expected to sign a lease for 2,350 square feet – or about half – of the building’s retail space. The rest of the space is being marketed at $70 per square foot, which Mr. Spitler said was “10 to 15 percent lower than average,” compared to the rest of the neighborhood.

Change will come to Avenue D gradually, in Mr. Spitler’s estimation. “I think you’ll have a mixture for a long time, probably in the next decade or so,” he said, adding that he had received interest in 101 Avenue D from bar and drug store operators, but did not get the level of interest he would have expected elsewhere in the neighborhood.

“I think that there is some challenge to Avenue D where not everyone wants to be on Avenue D,” he said. “So I do think we have to deal with that, where I think if you had an Avenue A location you’d be getting a different level of interest.”