Rivington Company has announced plans to develop a new apartment building at 140 Fulton Street in the Financial District. According to information on its website, the company intends to create 99 residential units along with 12,300 square feet of commercial space. The total area of the proposed building is expected to be approximately 136,800 square feet.
Recent trends in New York City development have seen more projects targeting just under 100 residential units. This approach aligns with the city’s tax incentive structure, particularly the 485-x program, which provides tax abatements for multifamily construction. Under this program, developers of buildings with fewer than 100 units are not required to pay higher construction wages mandated for larger projects—set at $40 per hour—which can impact project feasibility and costs.
Rivington Company acquired the lot at 140 Fulton Street through a shell company for $26.4 million and secured $17.4 million in financing from G4 Capital Partners. The seller was Bank Hapoalim, as first reported by Commercial Observer.
The site has experienced several changes in ownership and purpose over recent years. In 2018, Hidrock Properties purchased the property from Raymond Gindi for $19.8 million and also acquired the neighboring five-unit rental building at 142 Fulton Street for $21.2 million. The following year, Hidrock obtained a $32.8 million loan from Bank Hapoalim with plans to build a hotel on the site and filed permits accordingly.
However, that hotel project did not materialize. In 2022, Bank Hapoalim initiated foreclosure proceedings against Hidrock Properties after alleging that the borrower failed to meet the loan’s maturity deadline despite three extensions; by then, the outstanding amount had reached $35 million according to court filings from Bank Hapoalim. Hidrock countersued but ultimately lost when the bank secured a $39.2 million judgment.
An auction was planned but later postponed when Bank Hapoalim allowed Hidrock another year to find a buyer for the property. When no sale occurred, ownership transferred to Bank Hapoalim in January of this year. Legal disputes continued until June when Bank Hapoalim withdrew a suit regarding transfer documentation after receiving signed papers.
Requests for comment sent to Rivington Company, Hidrock Properties, and Bank Hapoalim were not immediately returned.
