Selling the Air Above – New York Times
On an island where there is often nowhere to build but up, the air in Manhattan can get pretty pricey. Air-rights deals, or the sale of unused development rights from one property owner to another, are generally considered the business of big-time developers. But in cheek-by-jowl Manhattan, homeowners, small-building owners and co-op boards can often find themselves involved, too. While potentially lucrative, such deals are complex and can even raise ethical quandaries for property owners.
Extell approached the town-house owners for their air rights because the properties all share at least 10 feet of lot line with the developer’s building site — a requirement for most air-rights deals. Several of the town-house owners said they were distressed over the idea of a tall building going up next door, one that would loom over their backyards and one that had been opposed by many people in the neighborhood because of its size. But they ultimately decided to band together and hire a lawyer to advise them and work out a contract with Extell.