NEW ROCHELLE, NY-The city and Valhalla developer Louis Cappelli have reached an agreement for him to purchase Downtown Parcel 1A where he can build as much as 320,000 sf of office/retail space. In exchange, Cappelli has been afforded a change of use that will allow him to build rental apartments instead of office space on top of the New Roc City parking garage.

The 1.88-acre site is directly across the street from Cappelli’s 500,000-sf New Roc City family entertainment center. The city and Cappelli have struck a deal to amend an air rights agreement for rights atop the parking garage next to the New Roc City project. Cappelli had planned to build 110,000 sf of office space on top of the garage. Marketing efforts by the company produced insufficient interest in the space, however, and Cappelli has to date just built the shell of the building. New Rochelle commissioner of development Mike Ritchie says the new air rights agreement allows Cappelli to build rental apartment units at the site. He notes that the developer could build out 92 market-rate rental apartments at the New Roc Parking garage site, which also features a 120-room extended-stay Marriott Residence Inn Hotel.

Commissioner Ritchie says that the Parcel 1A sales agreement mandates that Cappelli develop at least 150,000 sf of office space no matter how large a development he builds there. Any other use at the Parcel 1A property would have to be retail use, Ritchie adds. The Parcel 1A redevelopment project may be eligible for New Rochelle Industrial Development Agency and/or Section 108 Loan Program assistance.

Construction of the rental apartment units could begin within the next 30 to 60 days pending permitting approval. Construction of the commercial/retail venture still must undergo city review and will not break ground until the spring of 2001 at the earliest, Ritchie says.

Joseph Apicella, senior vice president of Cappelli Enterprises, says that the company could have its rental apartment venture completed by March or April of 2001.

Just down the street AvalonBay Communities is building a 24-story high-rise rental apartment building that will feature 412 luxury rental units. Tenants are expected to begin taking occupancy next spring. The project is the first phase of a 1,000-unit planned rental community to be developed by Avalon in Downtown New Rochelle.

Apicella says that Cappelli’s rental building will not have much, if any, impact on the marketing efforts of the Avalon on the Sound project. “The rental apartment market in Westchester is highly under-served especially south of I-287,” he says. “We don’t feel 90 units will have any impact at all.”

He also reveals that Cappelli is devising a plan for Parcel 1A that might involve the construction of an office tower that could go as high as 28 stories. The three development plan scenarios under consideration would either be all office space use or with a small component (30,000-60,000 sf) of retail.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt. Multifamily Fall 2024Event

Join the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.