Chunks Of 2 UES Blocks Are Sold, With Redevelopments Likely

UPPER EAST SIDE, NY — Large chunks of two different Upper East Side blocks were sold to developers in recent days, setting the stage for their low-rise buildings to be torn down in favor of new high-rise towers.

The two properties that changed hands are 1481-1489 Second Ave., which was sold on Friday to the Naftali Group; and 309 East 94th St.-324 East 95th St., which were purchased Monday by Taconic Partners and Nuveen Real Estate.

The Second Avenue lot comprises two five-story buildings on the northwest corner of East 77th Street. Formerly home to restaurants including Lenwich, Vero wine bar and Sable's Smoked Fish, the buildings all emptied out in recent years as owner Sky Management Corp. prepared to sell them.

Last week's sale was for $72.6 million, according to the Commercial Observer. The properties could accommodate a building as large as 152,000 square feet, or 186,000 square feet if it includes affordable housing, according to the report.

Naftali's other Upper East Side projects include The Benson, a luxury condominium tower on Madison Avenue, and the recently-completed luxury tower at 200 East 83rd St.

Further uptown, the 94th and 95th street properties sit on opposite sides of the same block, comprising a loft-style office building, a two-story garage and an auto shop. (The shop, NYC Auto Repair, was briefly in the spotlight this summer when a disgruntled former employee shot and killed the manager, according to authorities.)

The $70 million sale was announced Monday by the two buyers, along with Flatiron Equities. The 87,700-square-foot site could fit a building as large as 205,000 square feet, the developers said in a news release.

Unlike the Second Avenue property, this site is unlikely to be developed into apartments — instead, due to the block's zoning, general or medical office space is most likely, according to Crain's. Whatever is built there, owners plan to start construction next year and wrap up by 2025.

The existing building was built as a manufacturing center before being converted to offices in the 1980s. Some of the building may remain standing, with the new development rising atop it, according to Crain's.

"As we continue to explore new opportunities for development, we’re positive this property will be yet another asset to the uptown neighborhood and community," Chris Balestra, Taconic's president and chief investment officer, said in a statement.

Have an Upper East Side news tip? Contact reporter Nick Garber at nick.garber@patch.com.