MAG Partners, Penn South, Safanad, and Partners Break Ground on New Mixed-Income Residential Building in Chelsea
Development will include 30% affordable units and 23,000-s.f. Lidl supermarket
NEW YORK, NEW YORK (October 3, 2023) – MAG Partners today broke ground on their 188-unit, mixed-use project at 335 Eighth Avenue in Manhattan in partnership with Penn South (also known as Mutual Redevelopment Houses, Inc.). Dignitaries including Councilmember Erik Bottcher, helped to mark the occasion. Thirty percent of the new building’s units will be reserved for low- and middle-income residents under the Affordable NY Program. The project, which is co-financed by MAG Partners and global holding company Safanad, will also offer ground-level retail space, including a 23,000-square Lidl supermarket.
The COOKFOX Architects-designed building will stand on the northwest corner of 28th Street and Eighth Avenue, at the former site of a retail complex that included a supermarket and tennis club. The 200,000-square foot, 7-story building matches neighborhood context, mirroring and updating the redbrick aesthetic of the Penn South towers surrounding the development. The project is slated for completion fall 2025.
In addition to providing affordable- and market-rate housing, a new grocery store, and construction jobs, the ground lease and development will support the continued affordability of Penn South, a fifteen-building, limited-equity cooperative home to nearly 5,000 residents. Urban Atelier Group will lead construction.
“Penn South has been a model of urban affordability, quality of life, and community cohesion for over 60 years. We’re proud to partner with them on this project that not only supports Penn South but brings significant new affordability and quality-of-life enhancements to the entire Chelsea community,” said MaryAnne Gilmartin, Founder and CEO of MAG Partners. “With leasing already underway on the Ruby at 243 West 28th Street and the upcoming groundbreaking of 300 East 50th Street – both of which provide housing under the Affordable NY program – MAG Partners is proud to bring high-quality affordable housing to communities across the city.”
“Home to nearly 5,000 New Yorkers, Penn South is a beacon of access and equity in the heart of Manhattan – and it will stay that way, thanks to the project we’re celebrating today,” said Ambur Nicosia, Board President of Penn South. “The beautiful new building at 335 Eighth Avenue will strengthen the Penn South community, providing financial support, a new grocery store, and add more affordable housing units to the neighborhood.”
“Our investments with MAG Partners demonstrate our conviction in the strength of the New York City multifamily market. We look forward to building on the success of the Ruby with the 8th Avenue site, which we believe will bring further high-quality rental product to an attractive submarket,” said Danny Jumblatt, Managing Director at Safanad.
State Senator Brad Hoylman-Sigal said: “Penn South’s storied legacy of providing affordable housing to New Yorkers on Manhattan’s West Side begins a new chapter with today’s groundbreaking of the new development at 335 Eighth Avenue, which happens to be directly across the street from my State Senate office. I congratulate the Board and residents of Penn South and MAG Partners and look forward to working with Community Board 4, my colleagues in elected office and other stakeholders in bringing more projects like this to fruition in our district to address the housing crisis in our city and state.”
“Penn South is the model vision of long lasting, truly affordable housing in New York,” said Assemblymember Tony Simone. “The housing crisis continues to grow across the state and this project will not only increase the supply of housing, including new affordable units, but also ensure financial stability for nearly 5,000 New Yorkers for decades to come.”
“I’m excited about this project that will contribute 56 new affordable housing units to our community,” said Councilmember Erik Bottcher. “This type of mixed-income development is essential to combating New York’s housing crisis while ensuring our neighborhoods continue to thrive. I want to thank Mutual Redevelopment for their stewardship of this new building as well as Community Board 4 and my colleagues in government for their assistance in realizing the project. I look forward to this building’s completion and its future contributions to Chelsea.”
“It is always a good day to break ground on a new housing development, especially when it includes affordable housing,” said Jeffrey LeFrancois, Chair of Manhattan Community Board 4. “Thanks to Penn South and MAG Partners for making this project happen, which will ensure more people can proudly call Chelsea home and afford it, too.”
“As one of the most ambitious new high-performance developments in the city, 335 Eighth Avenue will continue the legacy of Penn South, as a community of housing innovation,” said Rick Cook, Founding Partner of COOKFOX. “With passive-house design, vibrant planted courtyards, terraces and rooftops, and healthy materials, we will remake the best ideals of urban living for a climate resilient future.”
“Urban Atelier Group is incredibly proud to embark on our second project in partnership with MAG Partners. This project underscores the importance of collaboration and trust, and our commitment to multifamily housing,” said Andy D’Amico, President and CEO of Urban Atelier Group. “We eagerly anticipate witnessing this transformative development come to life and are confident it will contribute to the vitality of the neighborhood and community.”
“We are excited to introduce Lidl’s fresh groceries, low prices, and convenient shopping experience to the Chelsea community,” said Or Raitses, Senior Director of Real Estate for Lidl’s Northern Region. “We look forward to continuing our expansion in New York City and opening even more stores in the future, bringing our unique value proposition to additional areas of the city where New Yorkers for far too long have had to put up with high grocery prices.”