In a conference call on Post's earnings, CEO David Stockert noted that the company spent approximately $140 million to develop the two buildings, Post Luminaria and Post Toscana and that he believes they are worth "substantially more than that." Post Luminaria is a 70-30 partnership with a pension fund. The firm cautioned that there "can be no assurance, however, that an attractive asset exchange will be completed."

In August 2001, Post and locally based Clarett Group started their first development, Post Luminaria, at 385 First Ave., the 20-story luxury tower had an estimated build-out cost of $51.5 million. The 150,000-sf residence features 138 rental apartments including studios, one- and two-bedroom homes. They average approximately 750 sf and had rents ranging from $1,800 to $4,500 per month. The development was structured as a joint venture, with Post and Clarett contributing approximately two-thirds of the equity to the venture and the landowner contributing the balance.

Stockert, who was then president and COO of the company, said "moving into this market continues our strategy to reposition and diversify our portfolio while creating value through development." The following year, the JV began construction on Post Toscana at 389 E. 89th St on the Upper East Side. This 210,000-sf residential tower has 199 luxury apartment homes including studios, lofts, and one-, two- and three-bedroom units. In addition to the residential units, the development includes a 7,200-sf grocery store on the ground floor. The total build-out costs were projected at $97 million. Rents range from $2,200 to $6,500 per month, excluding the penthouse.