Montgomery Street Partners Bought Site for $95 Million
The firm acquired an 80,000-square-foot Long Island City site intended for a new 495-unit residential development.
Updated on Sept. 18, 2026 in Construction
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Montgomery Street Partners acquired a former New York Blood Center site at 10-01 45th Road in Long Island City for $95 million. In September 2026, JCS Realty Group filed plans to develop a 495-unit residential project on the 80,000-square-foot property.
Why it matters
The development is structured as five individual buildings of 99 units each to avoid triggering a $40 wage floor. This wage mandate is associated with the 485x tax abatement program for projects containing 100 or more units.
The firm paid $1,188 per square foot for the site, which encompasses 80,000 square feet. The project design features five separate buildings, each housing 99 residential units.
The players
Montgomery Street Partners
This real estate investment firm acquired the 80,000-square-foot development site for $95 million.
JCS Realty Group
This real estate entity filed plans for the residential project and entered into a lease agreement to develop the site.
Joseph Frankl
He is the architect at JFA Architects & Engineers tasked with designing the five-building development.
The details
Designed by Joseph Frankl of JFA Architects & Engineers, the residential project will include ground-floor retail spaces, bicycle storage, terraces, and outdoor lounges for residents. JCS Realty Group entered into a lease agreement with the new site owners to manage the development of the former New York Blood Center location.
Timeline
September 2026: JCS Realty filed plans for the residential development.
Market Landscape
This development strategy highlights how developers are navigating the requirements of the 485x tax abatement program to optimize project costs. By segmenting the project into smaller buildings, the firm positions itself to manage labor expenditures differently than competitors pursuing larger single-structure designs.
Residents in Long Island City can expect the conversion of the former New York Blood Center location into a new mixed-use space featuring residential units and ground-floor retail. The project design emphasizes modern amenities such as terraces and outdoor lounges, which may influence future local market rental standards.
The takeaway
The strategic division of this property into five-unit segments highlights how developers adapt to specific regulatory thresholds to control construction labor costs. This approach illustrates the impact of tax incentive criteria on the physical layout and scale of urban housing developments.
Further reading
For more on local development trends, visit New York City Construction.
Source note: This article includes information reported by The Real Deal New York.
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