NYU Closes on $275M Dorm Buy

NEW YORK CITY-New York University has closed on its purchase of the Gramercy Green building at 316 Third Ave. from developer JD Carlisle Development Corp. According to the Office of the City Register, the purchase of the approximately 260,000-sf building was for $275 million, although an NYU spokesperson did not confirm the price.

The spokesperson did confirm that “the purchase has closed” and notes that NYU “determined its intentions to use the 21-story condo for dorm use early on.” The facility, located at 23rd Street and Third Avenue is the newest addition to the NYU residential education family and will primarily house sophomore students.

The facilities include a TV, computer, and study lounge on floors three through five, as well as a large programming space for “a variety of events and activities,” according to NYU’s website. In spring 2009, the sub-level will open which houses a gym, private study rooms, and a larger TV lounge.

According to various reports in 2007, the new high-rise was primarily marketed to overseas Irish investors; however KMS Commercial, who marketed the site, was unable to be reached by deadline for confirmation. In late 2007, Carlisle told many publications that there were no Irish involved.

The shortage of housing in New York City has been a continuous problem for institutions here and the demand for student and faculty housing will continue to grow. As GlobeSt.com previously reported, both NYU and Columbia University are both currently involved in major expansion plans here, and they have been hotly debated in their respective communities. NYU’s Plans 2031 will provide a framework to guide NYU as it seeks to locate approximately six million sf of space over the next 25 years. The space demands are primarily in the areas of housing and academic. Columbia’s $6.28-billion Manhattanville expansion project in West Harlem will add up to 6.8 million sf of new facilities and up to 16 new buildings. Columbia’s Manhattanville project was recently adopted by the Empire State Development Corp.