IN HOUSING PROJECTS IN THE OUTER BOROS
BY DONNA KLEIN, nyarm
The guest speaker at the New
York Association of Realty Managers (NYARM) first monthly membership
meeting of 1999 was Joshua Muss, a third generation member of
the Muss Development Company.
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Mr. Muss’ company has been solidly involved in housing development in the outer boroughs. "The fact is that, right now, there are very few developments being developed in the boroughs. It is extremely costly, it is extremely difficult to find developable projects and the time span is such that you just don’t know when it’s going to happen." Economically, it’s very difficult to time the entire process.
LONG TERM PROJECTS
"I’ve been associated, within the last fifteen to twenty years, with seven projects of large dimension. Some of them have been completed, some of them are on the way, some of them may not be completed for another 30 years, " stated Mr. Muss. Three of these projects are residential developments on Staten Island. One project in Brooklyn has just been completed after fifteen years. Another project, in Flushing, was started in 1983 and Mr. Muss doesn’t expect to see its completion until he has great grandchildren. He cited zoning changes, environmental issues, political and community impediments and financing difficulties as just a few of the problems that impact upon a builder when he looks at a piece of land and says, "Let’s develop this property."
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Harriet Kyrous and Ellen Kornfeld, Taranto & Associates; Linda Peters, Sentry Contracting; Bob Carlsen and Max Ruperti, Alexander Wolf & Son and Larry Ganz, AIA Environmental. |
Brian Riley and Tom Eschman, Manhattan Skyline Management; Donna Klein; Irwin Sandler, Scientific Compactor/Boiler; Nelson Davis, JAD Corporation of America and Jerry Blumberg, Kew Forest Maintenance Supply. |
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William Shands, President NYSARHO and Executive Director Peekskill Housing Authority; Gail Duke, IREM; Bruce Braithwaite, Rockville Centre Housing Authority; Janet Roman, IREM and Nelson Davis. |
Leonard Licata, Franklen Glass; Barbara Glover, Queensview, Inc.; Tom Maniuszko, Total Service Ltd; Patricia Ruggeri; Rochelle Captan, Amalgamated Warbasse Houses and Irv Golden, Hico Compactors. |
FLEEING THE CITY
Mr. Muss called housing in the boroughs "root bound." There are no apartments available. People living in rent stabilized apartments will live there till they die. If you’re financially capable of buying a house, you can look in Douglaston, Flushing or Staten Island, after that you’ve got to leave the city. "And, eventually when they can’t make it back to Manhattan because of the crush of commutation then the entire infrastructure of Manhattan stands at risk. This is a long range issue, but it’s a real issue that has to be faced."
LARGE DEVELOPMENTS
Mr. Muss explained that you can’t build developments for a potential $1500-$2000 a month rent for a two bedroom apartment. "The dollars just don’t work," said Mr. Muss. And if the dollars don’t work why would anyone even attempt to break ground? He brought up QueensWest which is probably the most ambitious project undertaken in New York City in recent memory. According to Mr. Muss every abatement was made available, every bureaucracy involved eased the way, zones were redrawn to make this project work. One building was built and occupied and Mr. Muss said it’s losing money.
Mr. Muss is about to start a project, originally conceived in the 1960s, which has gone through a number of transitions and developers. The development of Brighton Beach Baths, a 16 acre site in Brooklyn on prime waterfront property is a major undertaking. Working within view corridor and height restrictions (buildings can only be 70 feet) they have been able to put together a plan which works and might even make them some money, until…
SPRINKLERS
Fire. Two recent fires in Manhattan have jeopardized the entire project. The City Council is calling for fire sprinklers in all new construction. If such a ruling is made into law it will impact on Mr. Muss’ project, change blueprint designs and ultimately cost him 15% of the height of the buildings. "Before you do it…think of the consequences, think of the issues, think of the impact. Consider alternatives…just don’t pass a law without thinking," warned Mr. Muss.
He advised those present that other than REBNY (Real Estate Board of New York), no one is representing the industry. And REBNY only represents Manhattan. The outer boroughs have no champion when issues such as sprinklers are discussed.
Mr. Muss insisted that it’s important to protect people’s safety and that they should have a place to live. But if a developer can’t afford to build then there is no place to live, the labor market dries up and New York City is in trouble.
"It’s your industry, you have to represent it and the entire industry so we do have something in common," concluded Mr. Muss.
ABOUT MUSS DEVELOPMENT
Muss Development is a full-line company that handles all aspects of development, including approvals, construction, marketing, leasing and management. Muss buildings are owned and operated by the company for the long term. They are planned and designed through an exhaustive process that produces the economies necessary to compete in the boroughs of New York City while assuring attractive, first-class quality products built to endure. At each level of the organization, Muss Development, maintains a personalized approach to every phase of the development/ownership process.
Given the cyclical nature of the real estate industry, the continuity, perspective, experience and, above all, the diversity of Muss Development, afford a unique flexibility to adapt and prosper. The leveraged debt of this private, family-owned company is extraordinarily low, its commercial tenancies are uncommonly strong and situated in prime locations, and its residential properties are fully leased or substantially sold. Thus, the organization is well positioned for continued long-term stability and success.
