Kinsmen Property, SK Development to Build 184 Apartments at 50 Third Avenue

Manhattan’s East Village is getting some new housing after Kinsmen Property Group and SK Development finalized plans to construct a multifamily development at 50 Third Avenue.

The joint venture plans to build a total of 184 rental apartments and ground-floor retail space at the site near the corner of Third Avenue and East 11th Street, according to a land use application filed with the city’s Department of City Planning last week. Approximately 20 percent, or 37 units, would be permanently affordable.

Kinsmen and SK Development on Monday secured $203.5 million in construction financing for the development, with Walker & Dunlop’s Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, Dustin Stolly, Sean Reimer and Sean Bastian arranging the floating-rate, interest-only loan through Ironsand for the JV.

“The East Village combines exceptionally limited new housing supply with sustained renter demand, creating compelling fundamentals for a project of this caliber,” Appel said in a statement. “Vacancy in the neighborhood remains low while proximity to major employment centers and the area’s appeal to young professionals and high-income renters continue to support demand.”

As of now, the development would be split into two buildings on separate tax lots, but stand as a “single structure” with a shared lobby and approximately 17 stories, the filing said. The south building would contain 99 residential units and 5,967 square feet of retail space, while the north building would contain 85 units and 3,812 square feet of retail. Amenities would include a fitness center, a yoga studio, a sauna, a cold plunge, a golf simulator and coworking spaces.

Kinsmen and SK Development filed an application with the Landmarks Preservation Commission last week for zoning modifications and an air rights transfer from the nearby St. Mark’s Church in-the-Bowery, which would be necessary to build the development as two separate buildings and to use the city’s 485-x tax incentive. The air rights transfer would grant the developers roughly 26,100 square feet of unused air rights from the church site, and proceeds from the project would provide funding for the church’s restoration and ongoing maintenance.

The properties affected by the development plans include a 17-story mixed-use building at 48-64 Third Avenue, the church site at 165 Second Avenue, and a five-story residential building at 66 Third Avenue. SK Development also filed plans in March to build a 13-story, 69-unit residential building at 122 East 11th Street.

If the landmarks commission does not approve Kinsmen and SK Development’s plans for a two-building project, the developers have an alternative plan to build the development as a single market-rate building containing a total of 184 units, according to the filing.

Isabelle Durso can be reached at idurso@commercialobserver.com.