Why hasn’t any other developer stepped in to take the superblock? [READER QUESTION]

Dear readers of Seabythecity:

Why hasn’t any other developer stepped in to take the superblock?

Who is the developer that is ready to step in and develop the superblock without the tax abatement?

Where is the lineup of competitive developers? I’m afraid the fact of their absence looms large.

You can say it has to do with Long Beach’s reputation, but like stock market investors real estate development is forward-looking and should take into account the changes from the past. Seriously a discussion of the merits if iStars presentation is in order as opposed to the catfight that will likely erupt tonight.

-A resident of Long Beach

13 Replies to “Why hasn’t any other developer stepped in to take the superblock? [READER QUESTION]”

  1. I am sure other investors are interested,but they do not like the politrix… and after hurricane Sandy I’m sure they want to go else where..If LB is great then why after all the past years is the Allegia not doing very well. ?? they cannot bring in the people..now without medical safety..aka no Hospital why invest in a losing deal. tax break brings them in, doesn’t mean they can keep anything sealed in stone. bet the jobs they claim to be bringing in will be outside contractors…it’s all a write off for ISTAR..

  2. Back in ’88 or ’89, the son of famous developer Zeckendorf, also by that name and also a major player, had construction drawings and was close to doing a major development there. I am not sure why it didn’t go. It could have just been the economic downturn, but knowing history can be a good way to avoid repeating a mistake.

  3. This site would have been developed by The Haberman Group, had politics not interfered. There was nothing wrong with Mr. Haberman’s plan. He and we got a raw deal. Those days are over.
    If i Star doesn’t build, there will be others waiting in line, once the word gets out. The Superblock is prime oceanfront real estate, in a walking city, 50 minutes from Penn and Grand Central Station. There’s nothing like Long Beach anywhere in the metropolitan area.

    The West End is experiencing a building boom. The Superblock will rent out or sell out in no time.

  4. It would be nice to see some clear evidence of this Rich. Where are the other developers who recognize the value of this location as you and I percieve it, who are clamor ing for the opportunity to take on the job with no tax abatements at 17 stories? I Star presented data to the zoning board that represented the full tax benefits to the City in order to obtain the variance. How many stories would they require to develop the property without the PILOT? What’s their new story? Isn’t LB owed a clean presentation of what it would take to be “financially viable” without PILOT, what the tax revenues would be in that Scenario?

  5. @richard – I don’t think it’s fair to say that the West End is experiencing a building boom. It’s experiencing a rebuilding boom. It’s not like people just discovered Long Beach; they Lost their homes. Many were forced by law by FEMA to raise their homes.

  6. There were other developers interested in the property but they all envisioned much denser, taller development than Long Beach warrants. Then the defaults, the questionable land transfers, and the lawsuits started and kept going for 30 years now.

  7. When i Star throws in the towel, and puts the Superblock up for sale for the 23 million that it’s assessment was reduced to (the taxes were cut in half from over a million dollars to a little over five hundred thousand dollars) there will be a lot of interested parties.

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