Launching phase two of Essex Crossing, Delancey Street Associates will begin constructing an eight-story building at 140 Essex Street. Referred to as Essex Crossing Site 8, designed by Beyer Blinder Belle, the development will include 92 studio apartments, available exclusively for seniors earning up to 60% of area median income or earning up to $40,000 annually. The structure will also feature 9,600 square feet of ground retail space.
Site 8’s total development cost is approximately $45.8 million. Wells Fargo is providing a $34 million construction loan. Wells Fargo is a tax credit investor on the project, purchasing low income housing tax credits allocated by New York City’s Housing Preservation and Development Department.
Construction is scheduled to begin in the upcoming weeks and the building is expected to open in 2019. As with all Essex Crossing buildings, former tenants will be given a preference in the housing lottery.
“Too many of New York City’s seniors struggle to find safe, quality, affordable housing,” says HPD Commissioner Maria Torres-Springer. In addition to Essex Crossing, she underscores the city’s Seniors First program, a plan to create new affordable housing to serve 30,000 senior households by 2026.
Along with the start of this new construction, the Essex Crossing residence at 175 Delancey Street, offering 99 affordable units for seniors, is anticipated to open this fall.
The Essex Street Market, which was originally established in 1940 by Mayor Fiorello LaGuardia as a place for street merchants to do business, had moved from 140 Essex Street, and has been operating at 120 Essex Street. The Lowline Lab, since 2015 served as a showcase for a proposed underground park (think shadow version of the High Line) in the building. In February, they left 140 Essex Street in anticipation of the structure’s demolition for the construction of Site 8.
The Essex Street Market will relocate to Essex Crossing, adjoining the development’s Market Line, a proposed marketplace bazaar, spanning 700 feet along Broome Street. New York City Economic Development Corporation president and CEO, James Patchett, called the beginning of Essex Crossing’s phase two of construction an exciting milestone. He notes the opening of the first section of the Market Line and the Essex Street Market’s move are scheduled for next year.
In addition to the construction of Site 8, phase 2 of Essex Crossing has planned construction of Site 3, including 83 market rate condominiums, Class A office and retail space; Site 4, including 263 apartments, 50% market rate and 50% affordable rentals, Class A office space and retail space, and construction of the 150,000 square-foot Market Line. Phase 2 is schedule for completion in 2018.
Essex Crossing’s phase 3 will encompass construction of Site 9, mixed income rentals, and Site 10, market rate condominiums. This construction phase is scheduled for completion in 2024.
The entire Essex Crossing development comprises 1.9 million square feet of residential, commercial and community spaces. The development of the six-acre area has been estimated to cost $1.1 billion. The project will create 1,079 housing units, 561 affordable units, and 518 market rate units.
Currently, 561 housing units are under construction. This includes 204 market rate rentals, 44 market rate condominiums, 302 affordable rentals and 11 affordable condominiums.
The project’s developers, Delancey Street Associates, consists of BFC Partners, L+M Development Partners, Taconic Investment Partners and Goldman Sachs.