【NYC Real Estate】The Grun Group Files Plans to Build 108 Units in Kew Gardens, Queens
- ARCFE U.S.
- 2 days ago
- 2 min read
The residential development landscape in Queens is experiencing a significant surge in activity as developers actively seek creative strategies to expand housing supply. The Grun Group has officially filed new construction plans with the New York City Department of Buildings to bring two adjacent multi-family buildings to the Kew Gardens neighborhood, resulting in 108 new residential units. The proposed twin developments are situated on Grosvenor Lane, just south of Metropolitan Avenue and about a block away from the expansive Forest Park, offering residents an exceptional balance of urban connectivity and natural recreation.
According to the official filings, the project will consist of two nine-story buildings designed to maximize local zoning potential. The first set of plans calls for a 58-unit residential building at 116-18 Grosvenor Lane, while the second set filed simultaneously outlines a 50-unit building next door at 116-14 Grosvenor Lane. Both structures will be spearheaded by Yonah Grunhut, CEO and founder of Grun Group, with Naresh Mahangu of NKM serving as the applicant of record. This strategic configuration highlights a growing trend among New York developers utilizing multiple adjacent parcels to optimize labor costs and streamline construction timelines under the state’s evolving regulatory framework.
Industry analysts point out that this dual-building strategy has become a highly popular "work-around" for developers navigating the city's new 485-x tax incentive program. Under 485-x, which replaced the previous 421-a tax abatement, projects that exceed 99 units are often subject to much higher prevailing wage requirements for construction workers, which can inflate total development costs by 20 to 30 percent. By splitting a single 108-unit project into two smaller, adjacent properties (58 and 50 units respectively), developers can successfully build larger-scale housing communities while maintaining manageable labor expenses, ensuring the financial viability of much-needed middle-market housing.
For global investors and EB-5 capital providers, the Kew Gardens project is a prime example of the resilience and adaptability of the New York City real estate sector. Despite regulatory changes, developers continue to find innovative pathways to satisfy the city’s deep-seated housing shortage. Queens remains a particularly attractive destination for residential capital, characterized by robust rental demand, lower land costs relative to Manhattan, and excellent transit infrastructure. As developers continue to file major pipelines across the borough, the Queens multi-family market is solidifying its position as a highly secure, growth-oriented asset class.
Source: Commercial Observer
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