Altmark Group has sold three adjacent lots in the Bronx's Mott Haven neighborhood for $22 million, with plans to develop a 99-unit residential project across the sites. The transaction closed Thursday and targets ground-up construction.

The deal reflects a broader trend in New York City development. Projects sized at exactly 99 units have proliferated since the city introduced its 485-x tax incentive program. The program offers significant abatements but triggers construction wage requirements that apply at 100 units and above. By capping projects at 99 units, developers avoid these wage mandates while retaining substantial tax benefits.

Mott Haven, long characterized by older industrial stock and vacant parcels, has emerged as an active redevelopment zone. The neighborhood's lower land costs compared to Manhattan or North Brooklyn attract developers seeking to maximize returns under incentive programs. Three adjacent lots consolidated for a single development maximize site efficiency and unit density.

For buyers in the area, additional housing supply should moderate rent pressures, though 99-unit deals typically deliver market-rate units rather than affordable housing. The wage exemption built into the 485-x structure means construction costs remain lower, often translating to competitive pricing for new apartments.

Current Mott Haven tenants face mixed outcomes. New development can displace existing residents, though the neighborhood's stock of older buildings offers limited protection under most rent-stabilization rules. Landlords holding aging properties in the path of redevelopment often benefit from acquisition offers as developers assemble sites.

The 485-x incentive remains controversial. Affordable housing advocates argue the program undercuts prevailing wage protections that fund union jobs. City officials defend it as essential to unlocking development in slower neighborhoods. The arithmetic is clear. developers size projects to capture incentive benefits while avoiding wage requirements.

Altmark Group's exit from the Mott Haven lots