NYC grants planning for Dunne apartment blockTuesday 06 May 2014 22.23
The city of New York has granted planning permission to a development company controlled by Sean Dunne's son John to build a multi-million dollar luxury apartment block.
The company TJD21, in which developer Sean Dunne has admitted involvement, plans to build a six-storey building in the Historic Cast Iron District in Soho.
The five commissioners of New York City's Board of Standards and Appeals voted unanimously in favour of the project.
The apartment block is expected to generate a profit of $3m (€2.15m) for the Dunne-controlled company.
The planning authorities had earlier raised concern as the company planned to develop the building with a rear yard measuring just 20sq.ft, which was smaller than the preferred 30sq.ft.
However, when the Dunne company agreed to remove the balconies from the apartments, this satisfied the board's requirements for shared light and outdoor space.
John Dunne is a controlling shareholder in the development company.
Sean Dunne, who is involved in bankruptcy proceedings in the US, has previously admitted an involvement in the project and his wife Gayle has an ownership interest.
The company plans to develop a six-storey building comprising retailers in the basement and ground floor, and four luxury apartment units on the remaining five floors.
Planning documents show the apartments are expected to be priced between $3,295,125 and $7,760,606.
The company paid just over $5m for the Soho site last year.
Documents lodged with the planning authorities show that the building construction would cost over $9.5m, plus another $3.3m for associated construction costs, such as fees and services.
The company intends to cover these costs with a construction loan of $13.5m.
This design would mean development costs of $18.4m and would value the investment at $21.4m, therefore generating a return on their investment of 7.05%, or $3m.
Construction on the apartments is expected to begin this summer.
The permission is subject to standard environmental testing on the site. The results will be known in one to two months.
Construction can then begin shortly after that.