Industry Heavyweights Warn of Slowdown

NYBC predicts lean times after “best year ever.” Also, construction progresses on two major housing developments on Leonard Street in Manhattan.

Major Players Weigh in on State of Industry

Anchin, Block & Anchin LLP recently hosted its annual State of the Construction Industry event, “Building in an Uncertain Economy,” in cooperation with New York Building Congress.

“[New York is] finishing strong in 2008,” said host Phil Ross of Anchin. “The decreased value of dollar, increasing cost of oil, rising cost of commodities, increased insurance and labor costs, financing challenges for owners, potential cutbacks in governmental spending on projects, the election year, all contributing to a hazy future of 2009-10, and the impact will be felt throughout the real estate and construction industries”

Dick Anderson, president of the New York Building Congress and moderator of the expert panel, said NYBC is confident 2008 will be the “best year in New York City ever,” and expected to see a fold in the 2008 local design and construction industry. “It was the year that if we didn’t tank in New York City, we would start to pull back. Instead, our forecast is that 2008 will be the strongest year in the design and construction market that we’ve ever had,” said Anderson.

NYBC expects construction spending to reach $34 billion, an increase of 16% over 2007. Additionally, construction employment is positioned to rise to 130,000. “Residential units reached 30,000, which was the strongest year since the 1966,” said Anderson. “By contrast with rest of the country, it is quite strong, but the question is, where do we go from here.”

To answer the question, Anchin and NYBC sought out expert opinions from panelists Jane Chmielinski, president and CEO of DMJM Harris, Robert Mullen, president of Structure Tone, Inc., and Robert Selsam, senior vice president of Boston Properties.

“The biggest challenge we face is in the public infrastructure side,” explained Chmielinski. “There is a lack of desire or will to look at pubic/private partnerships as a way to advance this industry. There are many institutions eager to invest in the infrastructure market . . . but I do fear that pubic/private partnerships could commoditize the engineering industry, but there is room out there for traditional design bid build and public-private partnerships, which work all over the world, but with very little success in the U.S.”

Mullen, on the other hand, had a “very good year” at Structure Tone and is predicting a downturn in the commercial building sector. “Commercial office sector is the driver behind the market, increasing in all boroughs; we think its going to continue for a while,” he said. “Mid-late 2009 will turn up, but [we have to] be realistic and know that there is opportunity out there.”

Sectors he said were in decline are: commercial office, retail, multi-unit residential. Stable sectors and those with potential growth include: hospitality/hotel, higher/private education and healthcare. “More markets segments are down versus than those are up, and we predict a 10-15% decline in the areas we serve over the next year,” he said. “The biggest challenges we see right now are cost of projects and labor issues.”

Selsam echoed the challenges confronting the industry. “It’s the best of times and the worst of times all rolled into one,” he said. “The best is that there is very little product for me to have to compete with, and the worst is that it’s hard to imagine a more difficult environment to build in than right now.”

Much of the future actually depends on what happens with New York City Mayor Michael Bloomberg’s term extension and the possibility of a new administration. “We think 2009 will still be fairly strong in the city and 2010 is of concern to us,” said Anderson. “But what happens beyond that, depends on government.”

Church Street Project Progresses

Work on the residential and hotel town in lower Manhattan—99 Church Street—continues as pile driving is expected to wrap up this month. Foundation work will continue until February 2009, when superstructure begins and will continue through December 2010.

Rendering by dbox, courtesy of SPI.

Work continues on the residential and hotel tower in lower Manhattan at 99 Church Street as pile driving is expected to wrap up this month.

“Index piles have been driven and . . . is expected to be between 225t or 250t, 400-450 ‘h’ piles will be driven to bedrock which is approximately 70 ft below the sc slab or 100 ft below grade,” explained Richard McKinley, development manager for the project at Silverstein Properties, the developer.

Foundation work began in June 2008 and will continue until February 2009 on the 80 story luxury tower, which will include condominiums, a restaurant and a Four Seasons hotel. The permanent foundation for the [project] is a mixture of existing footings beneath the new public plaza, three ft diameter 3000t and driven ‘h-piles’,” said McKinley. “The existing foundation walls, 30-35 ft deep on all four sides of the site, will remain.”

Superstructure begins in February 2009 and will continue through December 2010. “Construction is on schedule, with planned opening for 2011,” said McKinley. “The [World Trade Center] delays do not impact the construction schedule for the Four Season Downtown project.”

The residential component, Four Seasons Private Residences New York, will include 143 units, and private amenities such as a 75-ft heated indoor pool, fitness center, lounge area and children’s room. The hotel, Four Seasons Hotel New York Downtown, located on the lower 22 stories, will consist of 175 rooms, restaurant, lounge, spa and health club with pool. The restaurant will be operated by the hotel, but has not yet been named, said McKinley. The development also will include a public plaza.

The project was designed by Robert A.M. Stern Architects, developed by Silverstein Properties and is being constructed by Tishman Construction, all of New York.

“Ninety-nine Church will counterpoint the glass-and-steel office towers that Larry Silverstein and his organization are building along Greenwich Street, and together these buildings will help Lower Manhattan realize its potential as a great place to live and work,” said Robert Stern, founder and senior partner of Robert A.M. Stern Architects.

“Our partnership with Four Seasons serves as further validation of Downtown’s ongoing transformation into a dynamic, sustainable and unparalleled urban community,” said Larry Silverstein, president and CEO of Silverstein Properties. “This evolution will reach its apex in the coming years as a resurgent Lower Manhattan economy, anchored by a 21st century global business hub at the World Trade Center, merges seamlessly with a first-class residential, hotel and tourist community that will serve as a model for cities all over the world.”

The new building will replace an 11-story tower, the former home of Moody’s Corporation, which was demolished in October 2007. Silverstein Properties purchased 99 Church Street in November 2006 for $170 million.

The redevelopment of the 99 Church Street site is designed to work in tandem with the revitalization of the World Trade Center, and will finish by early 2011, according to Silverstein Properties.

TriBeCa Project Nears Completion

Construction is progressing on a $45 million luxury residential project at 34 Leonard Street in Manhattan, which involves 16 loft-style homes, spread out over nine stories and 55,000 sq ft. The building is shown topped out.

Construction continues on a $45 million luxury residential project at 34 Leonard Street in Manhattan.

The project involves constructing 16 loft-style homes, spread out over nine stories and 55,000 sq ft.

Designed by Beyer Blinder Belle of New York, the project features industrial-scale windows, exposed materials. landscaped roof deck with grill, a sunbathing area with outdoor shower, fitness center; pet spa, wine cellar to house private collections and private storage. Additionally, the building will have a video installation exhibit by Jennifer Steinkamp, which is a three-dimensional visual illusion of trees that encircles the lobby.

Construction materials include walnut wood flooring, kitchens, designed by Poggenpohl featuring Imperial Danby marble countertops, along with Viking and Subzero stainless steel appliances and Grohe faucets. Baths vary to include Oyster Beige limestone, Watermark fixtures and fittings, Imperial Danby marble counters and floors and Ann Sacks stone mosaic floors.

New York-based construction manager EW Howell and developers R Squared Real Estate Partners, also of New York, have not encountered many challenges during construction, with the exception of transit line considerations. “We are working very closely with MTA since the construction site sits atop of asubway line,” said Gregg Rechler, Principal, R Squared Real Estate Partners.

Construction began in early 2008, concrete was poured in March, the building topped out in September and is currently on schedule to be completed by the end of this month.

AIA Releases New Contract Docs

The American Institute of Architects recently released six new AIA Contract Documents, collectively called 3.5 Release, for the design and construction industry.

Included in the updates are a new Building Information Modeling exhibit, two new Integrated Project Delivery agreements, two new Design-Build agreements and a Scope of Services document.

The new BIM Exhibit, E202™-2008, sets the requirements and authorized uses for BIM content and identifies BIM authors at five progressive levels of development. It also establishes protocols for model ownership, conflict resolution, storage, viewing and archiving, according to AIA.

The new IPD agreements, C196™-2008 and C197™-2008, provide the contractual structure to secure funding and to design and construct the project.

The two Design Build agreements, A441™-2008 and C441™-2008, address contractor/subcontractor and architect/consultant relationships including respective rights and responsibilities, roles, communications, compensation, dispute resolution and payment, according to AIA.

Lastly, the scope of services document, B207™-2008, provides agreement on the number of architect’s representatives stationed at the project site and the services to be preformed and the owner’s responsibilities. B207-2008 eliminates the need to create a custom scope of services document, saving time and money, according to AIA.

“We understand that the design and construction industry is evolving and we are pleased to lead the way by introducing new documents that provide a road map for navigating BIM and IPD,” said Suzanne Harness, Managing Director and Counsel, AIA Contract Documents. “This latest release continues the AIA’s long-standing tradition of providing documents that are easy to use, reflect current industry practices, and fairly balance all parties’ interests.”

Design Unveiled for Astoria Senior Housing

Plans have recently been released on the three-building Senior Residences Project at the First Presbyterian Church of Astoria in Queens.

Designed by Goshow Architects of New York, the 82,500-sq-ft, 94-unit project will also include 6,000 sq ft of worship and community space. The senior housing units will be one-bedroom efficiency units.

“This project is on the cutting edge to find new uses for under-utilized religious properties,” said Eric Goshow, principal of Goshow Architects. “It responds to the needs for low-income housing and preserves some of the history of the neighborhood.”

The Presbyterian Church of Astoria will own a 6,000 sq. ft. condominium and the first floor community space seating up to 150 people, which will also be used for worship services on Sunday. “With congregations and endowments dwindling, churches must find ways to stay financially viable," said Nancy Goshow, managing partner of Goshow Architects. “This is a new way to make productive use of church property while giving them a way to maintain and revitalize their congregation and mission.”

Although the church buildings were not officially landmarked, the architects worked with the State Historic Preservation office and decided that the classical structural facades on the church and the church house, with granite columns and a Greek pediment, will be saved and used as free-standing elements at the front of the new buildings, according to Goshow Architects. The new buildings will feature exhibition space dedicated to the church’s history.

“By using some of the features of these 19th and 20th century buildings we create a compromise that works for everyone—the church, the community, and the needs of the neighborhood for senior housing,” explained Eric Goshow. “Saving historic remnants of the older buildings and including them in the design of the new housing structures is a way to honor the past.”

The $21 million project is being sponsored and operated by the Hellenic American Neighborhood Action Committee, through New York City’s Department of Housing and Urban Development and the Enterprise Foundation.

General contractor Monadnock Construction, Inc.of Brooklyn is expected to break ground in early 2009 and complete the project by fall 2009.

High-Rise on Leonard Street Underway

The new building at 56 Leonard Street in Manhattan will create a vision of houses stacked in the sky, blending indoors and outdoors seamlessly together with its articulated surfaces, dramatic cantilevers, profiled slab edges, profusion of balconies and expanses of glass, according to architects Herzog & de Meuron of Switzerland.

Rendering copyright Herzog & de Meuron, Basel, 2008.

Construction recently began on the high-rise condominium project at 56 Leonard Street in the TriBeCa neighborhood of Manhattan.

The 57-story, 145 unit tower was designed by Herzog & de Meuron of Switzerland and is their first high-rise project. Costas Kondylis & Partners of New York City is serving as executive architect.

Residences will include two- to five-bedroom residences and ten penthouses, each with a unique floor plan and private outdoor space.

Most interestingly, the skyscraper has floor plates with a staggered progression of structural slabs turning slightly off axis as they ascend, creating an irregular flurry of cantilevered terraces up and down the building, explained the architects.

“We approached the design process for 56 Leonard Street from the inside out, from the homes themselves. But we also considered the outside in terms of the Tribeca neighborhood,” said Herzog & de Meuron in a release regarding the design. “Here you have the small townhouses, the old manufacturing buildings, and the high-rise buildings, but also a lot of little corners and surprising things between. The different scales characterize the neighborhood and we wanted to establish a dialogue among them.”

The building will feature five “zones” from street to top: lobby, residences, amenities, tower residences and penthouses. Amenities will include a verdant exterior vertical garden off the lobby, concierge, refrigerated storage room, a two separate elevator landings with a total of seven elevators for the residents’ use., a 75-ft infinity edge pool, an outdoor sundeck, a fitness center with yoga studio, spa, a library lounge, a screening room, a private dining/conference room; and a children’s play room.

“We are extremely pleased and honored to be able to create a tower of true global character at a moment when great architectural ferment is reshaping New York City,” said Izak Senbahar of Alexico Group LLC, the New York-based developers of the project. “With 56 Leonard we aspire to make a unique contribution to the fabric of our town with a building that relates directly to the city but is also an outstanding international address.”

Construction manager Hunter Roberts of New York broke ground on the project in September 2008 with completion anticipated by fall 2010.

Brooklyn Residential Boom

Luxury condominiums at 189 Shermerhorn Street in downtown Brooklyn are underway, which is another step towards transforming the area from traditionally commercial to residential.

Rendering courtesy of dbox.

Luxury condominiums at 189 Shermerhorn Street in downtown Brooklyn are underway, which is another step towards transforming the area from traditionally commercial to residential.

The multi tower complex, named be@shermerhorn, will contain a 26-story tower and 5-story mid-rise building, with 245 units. The project is 278,000 sq ft, which includes 177,000 sq ft for residential, 43,000 sq ft in subcellar and cellar parking and 14,000 sq ft in retail space. The studio, one- and two-bedroom residences will range in size from 444 to 1,037 sq ft and in price from $345,000 to $1,095,000.

The condominiums will feature white oak floors, oversized windows, open-plan kitchens with white lacquer cabinetry and Blizzard Quartz. Bathrooms will include Jet Mist honed flooring, Corian glacier white countertops and satin nickel fixtures. Some residences will have private terraces.

“The varied fabric and rhythm of the streetscape in downtown Brooklyn allows an edge and constant juxtaposition between classic and modernist design that really is only possible in a place as unique as Brooklyn,” explained Mario Procida, of New York-based SDS Procida Development Group, the developers of the project.

Stephen B. Jacobs Group, P.C. of New York designed the building with numerous common space areas promote resident interaction. Amenities include a courtyard, greenhouse, fitness center, coffee bar, media lounge and laundry lounge. Constructed on top of be@shermerhorn are 22, 350-500-sq-ft private rooftop cabanas—nine atop the five-story tower and 13 on the 25-story roof tower—which are available for purchase by residents.

The building is being constructed by Procida Construction Corp, who began work on be@shermerhorn in September 2006, which is slated for completion in Spring 2009.

Construction Begins on CaVaLa Park

New York City Department of Parks and Recreation recently broke ground in September on downtown Manhattan’s newest public park.

The triangular park brings a half acre of open space to north Tribeca. It was named for Canal, Varick, and Laight, the streets that surround it, explained Park’s Commissioner Adrian Benepe.

The design includes a fenced-in park with three gated entrances, lined with a perimeter of trees and cut through with a winding path of granite stones. In the center will be a small lawn under the shade of a large tree.

Along the north side, the plan is to create a canal—120 ft long, 12 ft wide, and eight in deep—where recycled water would flow from high to low ground, according to the Lower Manhattan Development Corporation, who is financing a portion of the project.

Additionally, the park will feature a large water sculpture by Elyn Zimmerman. The project replaces broken cobblestones and cracked asphalt at the intersection, which was previously used for parking.

The $3.3 million park was financed by a $2.4 million grant from the LMDC, along with $500,000 from the Paul and Irma Milstein Foundation and $396,000 from the mayor’s office.

CaVaLa Park is the latest in the series of new green spaces funded in part by the Lower Manhattan Development Corporation’s $20 million Open Spaces II grant program, which also includes James Madison Plaza, Sara D. Roosevelt Park, Allen/Pike Malls, Collect Pond Park, Washington Market Park and the Battery Carousel, according to LMDC.

CaVaLa Park is expected to open in summer 2009.

NJ Luxury Projects Underway

Construction continues on the luxury condominium development—Mill Pond—in Eatontown, New Jersey.

The project spans nine acres and includes seven, three-story buildings. The 118 unit complex will be 200,000 sq ft in total.

Mill Pond is being developed by American Properties Realty at Eatontown II, LLC who is also the general contractor.

According to the developer, the project is currently on schedule and has not yet experienced any construction challenges to delay the project.

Designed by J. Stevens and Associates of Philadelphia, the residences include up to 1,600 sq ft of living space, two bathrooms and garages. Bathrooms feature Kohler fixtures, maple or oak vanities, ceramic tile floors and walls and oversized mirrors. Kitchens offer maple or oak cabinetry, Whirlpool gas ovens and ranges, multi-cycle dishwashers and microwaves and Kohler kitchens faucets.

Interiors will feature insulated steel main entry doors, nine-foot ceilings, Dimplex electric fireplaces in the living rooms and private terraces.

With sustainability in mind, Mill Pond will have single-hung vinyl windows, fiberglass insulation, high-efficiency refrigerant system, which are all energy efficient.

The $16.5 million project broke ground in October 2007 and is slated for completion in April 2009.

Meanwhile, construction is progressing on another new residential community—The Jefferson—in Ewing, New Jersey.

The Jefferson is also developed and constructed in-house by American Properties Realty at Jefferson, LLC and designed by J. Stevens and Associates.

Construction began on the condominiums in April 2008 and will include 10 three-story buildings. The 235 units will be two-bedroom, two-bathroom residences covering 350,000 sq ft.

The homes will feature Wilsonart laminate countertops in the kitchen and master bathroom, 42-inch thick oak cabinetry, electric fireplace, nine-foot ceilings, six-foot soaking tub and Dal ceramic tile in the master bathroom, security system with intercom and private balcony.

Amenities will include a fitness center, a club room with lounge, an outdoor pool, a bocce ball court and a children’s playground.

American Properties anticipates completing the $28million project by March 2009.

NJDOT Decongests RT 17

The New Jersey Department of Transportation recently began construction on a project to improve traffic flow and safety at four major intersections along Route 17 in East Rutherford, Hasbrouck Heights and Rutherford in Bergen County.

“NJDOT’s Route 17 intersection improvements will significantly increase safety and reduce bottlenecks along one of New Jersey’s most congested roadways,” said New Jersey Governor Jon Corzine.

This $14.7 million project includes four intersections on Route 17 targeting improvements on Route 17 at Highland Cross in Rutherford, at Union Avenue in East Rutherford, at Franklin Avenue and Malcolm Road in Hasbrouck Heights and at Williams Avenue in Hasbrouck Heights. The project also includes new dedicated turning and auxiliary lanes. The right shoulder and median areas on Route 17 will be used to widen the roadway and add auxiliary lanes, according to NJDOT.

The 2004 Meadowlands Regional Transportation Analysis Report identified this project as a transportation priority, said a spokesperson for NJDOT.

Tilcon NY, Inc. of West Nyack began construction on the project in September 2008 and it is slated for completion in May 2010.

More Class A for Madison Ave

Construction is progressing on the $15 million capital improvement project, 295 Madison Avenue, which broke ground in August 2008 and includes renovating a 47 story, 330,000 sq ft office tower in the Midtown section of Manhattan.

Rendering courtesy of The Moinian Group.

Construction is progressing on 295 Madison Avenue, the latest capital improvement project for Manhattan-based developer, The Moinian Group.

“We have a unique opportunity to reposition one of the Grand Central area’s premier office buildings into a highly desirable Class-A property,” explained Carmel Kashani, a project manager of 295 Madison Avenue for The Moinian Group.

The $15 million project broke ground in August 2008 and includes renovating a 47 story, 330,000 sq ft office tower in the Midtown section of Manhattan.

The focal point of the improvements will be the new Gensler Architecture-designed lobby featuring Italian travertine stone flooring and walls, mirrored glass elevator walls, new digital turnstiles, elevator cabs and lighted steel canopy, according to The Moinian Group.

The improvement program also includes a restoration of the art-deco era cast iron façade and exterior limestone surfaces. Gensler will also be designing a 180-ft-long glass retail storefront.

In regard to 65 units that comprise the office component, the project team has constructed “pre-builts suites in [the] tower and base floor,” said Kashani. Additionally, 2000 new windows will be installed and the elevator cabs and roofs will be replaced. The developers said they “have partitioned the 41st floor lobby with a construction shed and are working around it [and] the construction of the pre-built suites have not really affected other tenants. Many of the spaces are full floors so there are no other tenants on the floor.”

Interestingly, the only construction challenge the team has faced so far was the street alignment. “Because 41st Street is heavily graded, we had to lower existing steel in the new lobby to create a flat surface,” said Kashani.

Constructed by Interior Building Solutions, Inc. of New York, the project is currently on schedule for a February 2009 completion.

NJDOT to Focus on Bridge Replacement

The New Jersey Department of Transportation recently began construction to replace the Route 49 Bridge over the Cape May Branch rail-line in Upper Township, Cape May County.

“This much-needed Route 49 bridge replacement demonstrates the State of New Jersey’s commitment to improving our transportation infrastructure as well as the quality of life of Cape May County residents and commuters,” said Governor Jon Corzine.

The $4.2 million project will replace the existing structurally deficient bridge with a new, higher, pre-fabricated concrete span. NJDOT will also resurface the Route 49 approaches to the bridge and improve the existing drainage system.

“The existing bridge is structurally deficient, has a substandard vertical under-clearance and substandard stopping sight distance,” explained a spokesperson for NJDOT.“The Bridge superstructure is in poor condition [and] the bridge sufficiency rating is 46.”

The project teams scheduled road closures and will implement local detours until May 2009; however, access to local properties will be maintained according to a spokesperson for NJDOT.

The project was awarded in June to Midlantic Construction, LLC of Manasquan, New Jersey. Construction began in October on the $4.2 million project and is scheduled to be completed in July 2009.