Developers struggle to sell 421-a sites as construction deadline looms

October 3, 2022 – Media Mention
The Real Deal

Herrick Real Estate partner, Brett Gottlieb, was quoted in The Real Deal discussing developers' recent challenge to sell off their 421-a tax abatement designated sites by June 15, 2026. The article noted that developers hoping to take advantage of this break are facing a multitude of setbacks. These include supply-chain and labor-related delays, swiftly closing the window to evaluate, purchase, fix and finish a project in time.

Brett agreed that developers have a "very limited, finite period of time" in which development sites will be able to sell. "I think these sites, in general, will probably lose their luster within about a year and a half."

Brett also highlighted how projects with fewer units likely have a better chance of selling. Developers don't need as much time to build them, giving them a bigger cushion. "If you have a two-year project, for example, then you better be underway by early 2024," he said. "If you have a four-year project, then you better be starting right now."

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