Slate Property Group and Pi Capital Partners Bringing New Rental to Midtown

There is a new multifamily residence coming to Midtown Manhattan. 

Slate Property Group and Pi Capital Partners have teamed up to build an 18-story apartment building that will have between 93 and 97 units, with 25 percent of units designated as affordable under New York’s 485x tax abatement program, the firms announced. 

The roughly 89,000-square-foot apartment building will be at 335-339 Fifth Avenue, which is currently a vacant lot. The site on the corner of Fifth Avenue and East 33rd Street — across the street from the Empire State Building — has been owned by the Pi family since 1997. 

“This is going to be a brand-new build, a multifamily project, a mixed-use asset. It will have retail on the ground floor and then high-end residential above,” Martin Nussbaum, co-founder and principal of Slate Property Group, told Commercial Observer. “It will be under 100 units because it is a smaller site. We’re looking to build a super-high-end multifamily asset that we’re hoping to own for a very long time together.”

Under the 485x tax abatement program, residential buildings with fewer than 100 units are not subject to construction wage requirements. Under 485x, which replaced the 421a program that expired in 2022, tax exemptions last 35 years for projects with at least 100 units. For projects with at least 150 units, the tax exemptions last 40 years. Both are contingent on 20 to 25 percent of those apartments being designated as affordable housing. 

“This project is very much in line with the entire 485x program,” Nussbaum said. “There’s an affordable component to the project of 25 percent, and that affordability is forever.” 

The companies expect to break ground on the new building in the middle to late part of next year, they said. It is too early to start talking about amenities or what the units will offer, but the companies have engaged a designer and an architectural firm to help with the interiors. 

“335-339 Fifth Avenue perfectly aligns with Pi Capital’s core philosophy of creating and holding prime real estate for future generations,” Jerry Pi, founder of Pi Capital Partners, said in a statement announcing the project. “We’ve safeguarded this site for decades, waiting for the ideal moment and the right partner. Teaming up with Slate Property Group allows us to bring this vision to life with a project that reflects best-in-class quality and enduring value.”

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.