Moses Karpen's Waterfront Property Management has filed plans for two 99-unit residential buildings on Brooklyn's Atlantic Avenue, capitalizing on New York City's 485-x tax incentive that favors developments under 100 units.
The 485-x program requires developers to pay prevailing wages on projects exceeding 100 units, making the 99-unit threshold financially attractive. By splitting the project into two buildings, Karpen avoids triggering those higher labor costs while still delivering substantial residential volume to the Atlantic Avenue corridor.
This strategy reflects a broader pattern in New York City development. Developers routinely max out at 99 units to dodge prevailing wage requirements, which can add millions to construction budgets. The practice has drawn criticism from labor advocates who argue it undermines wage standards, but it remains legal and widespread across Manhattan, Brooklyn, and Queens.
For Atlantic Avenue specifically, the two buildings represent continued residential densification in the area. The neighborhood has seen steady redevelopment over the past decade as investors target the Brooklyn waterfront. These projects typically attract young professionals and families priced out of Manhattan, with rents ranging from market-rate units to some affordable-housing components depending on local requirements.
The filing with the DOB marks an early stage. Karpen still needs full approvals and environmental review before breaking ground. Financing details remain unclear, though Brooklyn residential developments of this scale typically secure conventional financing from regional or national lenders.
For current Atlantic Avenue residents and tenants, the projects promise more housing supply in a tight market. For sellers, land values in the immediate area could see upward pressure as development activity increases. Landlords with expiring leases may face competition from new, modern units. Prospective renters should expect increased options but possibly at premium pricing given Atlantic Avenue's desirability and proximity to transportation.
Waterfront Property Management's move under