Bentley Zhao is furthering his footprint in Kips Bay.
The chair and chief executive officer of New Empire Corp. filed demolition permits for four four-story buildings spanning 247 East 31st Street and 563, 567 and 569 Second Avenue, Crain’s reported. The clearing will pave the way for a 14-story condo project with about 130 units and ground-floor retail.
The filings come a month after Zhao, through Nere Rose Hill Management, paid $37.9 million for the properties. Leslie Ling, a senior development manager at New Empire, told the outlet the firm is targeting a fourth-quarter 2029 completion for the project, though development plans have not yet been submitted to the Department of Buildings.
The assemblage sits between East 31st and East 32nd streets and holds 60 rental apartments, all occupied, along with retail space that includes a Verizon store. One storefront previously housed Marchi’s Restaurant, a family-run Italian spot that closed in 2019 after 90 years in business.
Seller Dean Marchi parted with the buildings through a trio of entities tied to his family.
The existing apartments have commanded market-rate rents. A three-bedroom, two-bath unit last leased in November for $4,750, according to StreetEasy, offering a snapshot of the income stream Zhao is poised to wipe away in favor of a for-sale product.
The planned development adds to New Empire’s sizable footprint in the neighborhood. In Kips Bay, Zhao’s track record includes a 55-unit condo project at 148 East 24th Street and a 59-unit development at 429 Second Avenue.
The firm has been involved in roughly 120 projects in less than two decades as either a developer or builder, it previously told the publication.
Kips Bay is also home to the Naftali Group’s The Willow at 201 East 23rd Street, one of last year’s most expensive Manhattan condo projects.
In 2023, Naftali paid $21.5 million to lease the site for 99 years from Snake River Development, an entity of BNS Real Estate. Designed by Cookfox, the 19-story brick facade will feature 69 units, a private courtyard, rooftop terrace, fitness center and screening room.
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