In the cosmic swirl of zoning debates and landmark preservation fights that have dogged redevelopment of the South Street Seaport area, there’s one quasi-niche project that seems to be humming right along. That would be Exhibit at 56 Fulton Street — a 23-story rental tower that figures to be ready for public marketing in Q4 or Q1 of 2017.
Scott L. Aaron, a principal at Socius Development Group, has teamed up again with the Brauser Group (they brought the popular condo development to market at 100 West 18th Street in Chelsea) and have poured the foundation and are getting ready to add the superstructure to the building in February. The aim is to have the 120-unit apartment building ready for residents by the spring of 2017, with 80 percent at market rate and 20 percent at affordable housing rates.
The process to get this rental tower rolling is in contrast to other, grander development projects in the area that include condos. The Howard Hughes Corporation continues to contend with controversies over Pier 17, Schermerhorn Row and a high-rise tower, while the Exhibit tower at 56 Fulton is a pretty rare example of how high-end rental units can be developed for the Seaport/Financial District market.
Construction underway at 56 Fulton Street
Brauser Group Owned the Land at 56 Fulton
While most developers can’t make rental towers economically feasible, given the high cost of land in Manhattan and Brooklyn, The Brauser Group has owned the garage that sat at 56 Fulton since the 1980s. So, essentially, it was free ground. That made it possible for them to consider a long-term investment in a rental tower. It also made underwriting the project a relative breeze. Likewise, with union labor a requirement for condo developers looking to take advantage of the city’s tax abatements, the costs of 56 Fulton are not as high.
“This is for the family to hold as a cash-flowing asset,’’ Aaron told StreetEasy. “We’re not building this to sell, but to hold. It’s a conservative real-estate play. There aren’t any empty rentals in New York City and this will be a very cool rental building in a great location.’’
The building will also house a 1,100-square-foot gym, a 300-square-foot yoga studio and over 4,000 square feet on the 23rd floor where residents can share wrap-around terraces, a lounge with a fireplace and a laundry room decked out as a library.
Exhibit Will Not Be a ‘Vanilla’ Building
Exhibit will be unique in more ways than just being a rare rental tower being added to lower Manhattan. Because they didn’t have to spend millions for the ground, Aaron and the Brauser family are able to sink a few extra million into making Exhibit a statement piece. The building will aim to retain the industrial vibe of the old Seaport. The interiors aim reinvigorate the city’s rock era — a time when the famous Chelsea Hotel residents gave way to the punk scene at CBGBs and Andy Warhol ruled the downtown art scene.
“My philosophy is that the risk is to be vanilla and non-descript,’’ Aaron said, adding that after the great reception they got for 100 West 18th Street, he was even more emboldened to make sure this new rental tower was a place potential residents would not mistake for any other building.
“This will be anti-cookie cutter,’’ Aaron said, clearly excited about Exhibit’s intentional “wow” factor.
All this adds up to a likely big win for the Brauser family — that rare entity that can afford to bring a rental tower to the high-stakes NYC market. It also portends to be a win for apartment seekers willing to pay full freight to live in a part of lower Manhattan that has been waiting for new housing options.
> See more photos of 56 Fulton
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