A 27-story tower with 560 rental units is planned for 35-10 Steinway Street in Astoria, on the site of a $2 billion megaproject that collapsed just over a year ago. Demolition is complete, but construction machinery has not arrived; excavation could begin before the end of 2026. The plan calls for a scaled-down building that keeps some of the affordable-housing promises of the original plan while abandoning its sprawling ambitions.
The project traces back to Innovation QNS, a proposed 3,200-unit, $2 billion complex that the City Council approved for rezoning in November 2022, according to 6sqft. That five-block vision also involved a City Council land-use application identified as ULURP No. 220369ZSQ and described as a special permit within a Large-Scale General Development, per NYC Council Legistar. The broader redevelopment was also tied to the Uniform Land Use Review Procedure, per NYC.gov.
Innovation QNS fell apart after Silverstein Properties withdrew, according to 6sqft, which also reported that remaining partners BedRock Real Estate Partners and L+M Development filed plans for a 560-unit building on one of the former sites. Those partners control only two of the five original Innovation QNS properties, leaving no path to realizing the full 3,200-unit plan, the outlet noted. As originally conceived, Innovation QNS called for 12 buildings — five of them over 20 stories, with the tallest reaching 27 stories — plus roughly two acres of open space, a community center, a supermarket, and a replacement movie theater, according to QNS, which also reported the project was expected to take a decade to build.
A Smaller Tower With a Familiar Height
The planned tower would be far more modest but still substantial for the neighborhood: a 27-story, 498,000-square-foot tower designed by Beyer Blinder Belle, per 6sqft's reporting. According to New York YIMBY, the building is planned as an all-electric mixed-use residential tower offering studio to three-bedroom layouts, with setbacks at the sixth and 25th floors, floor-to-ceiling windows framed by beveled metal paneling, terraces atop the setbacks and flat roof, and a bulkhead finished in a pleated metal envelope. The outlet reported the site is bounded by 35th Avenue, 38th Street, and Steinway Street, and that it formerly held a surface parking lot — now cleared of structures but still showing a heap of asphalt rubble, with no construction machinery yet on site. New York YIMBY estimated excavation could begin before the end of 2026, and projected a completion date of January 2029.
Ground-floor retail space is expected to be preserved for P.C. Richard & Son, according to 6sqft, which described the arrangement as the developers' intent to keep the retailer in the project. The outlet reported the active permit calls for 560 units, a figure also confirmed by property-records site bldup.com, which noted the developers already have the permit in hand.
Affordable Units and a Tangle of Land Deals
Twenty-five percent of the building's units will be set aside as affordable, averaging 60 percent of area median income, per 6sqft's reporting, which added that the developers plan to pursue additional affordable housing beyond what's required under the Mandatory Inclusionary Housing program. New York YIMBY similarly reported that affordable housing at the site falls under the Mandatory Inclusionary Housing program, with roughly 140 apartments reserved for affordable rents.
The deal-making behind the site has been layered. Bldup.com reported that LMXD and BedRock Real Estate Partners acquired the Astoria parcel from grocery affiliate King Kullen for a combined $53 million across two separate transactions, with LMXD's Steinway 1 Owner LLC paying $32.7 million for 35-10 Steinway Street specifically. Those deals closed on July 27, 2026, and were recorded on August 10, 2026, according to the same report, which put the combined site's buildable area at more than 566,000 square feet once air rights are factored in.
Construction Financing
New York YIMBY reported a $250 million loan arranged by JLL.
LMXD's Queens footprint includes the Astoria site, acquired with BedRock for $53 million. New York YIMBY also reported that LMXD and BedRock acquired adjacent sites at 35-17 42nd Street and 42-08 35th Avenue for $15.8 million.
For Astoria residents, the tower's upper floors are expected to offer panoramic skyline views, according to New York YIMBY, which also noted the nearest subway access runs through the M and R trains at the Steinway Street station to the northeast. No amenity list has been disclosed for the building, the outlet reported.
