1.2 Million-Sq-Foot, Three-Building Mixed-Use Property Will Include High-Rise Residential and Retail
HR Real Estate Investment Trust announced it has agreed to a joint venture with Tishman Speyer to develop a massive 1.2 million-square-foot mixed-use project in Long Island City, NY.
Tishman Speyer will act as the developer and manager of the 50/50 JV accommodating up to 1,600 rental units and 30,000 square feet of retail developed in three phases. The site is near 2 Gotham Center, a fullym leased 670,000-square-foot office tower developed by Tishman in 2011 and acquired by HR later that same year.
In the initial phase of the new development, Toronto-based HR and Tishman Speyer plan to construct a 42-story tower, including 700 rental apartment units. Construction is expected to begin in 2015 with occupancy expected to commence in 2017.
HR’s share of the total land cost is $55.6 million, a substantial discount to appraised value, the venture said in a statement. Tishman Speyer has had an interest in its share of the land since 2003. The total project cost is expected to be about $875 million.
The Long Island City market has experienced remarkable growth, and will continue to be a highly sought after destination across New York. The neighborhood’s waterfront parks, popular restaurants and cafes, and a notable array of art and sculpture museums, have made it one of the fastest growing mixed-use communities in New York City.
The site offers views of the East River and the New York City skyline and also benefits from access to eight subway lines and a 5-minute commute to Midtown Manhattan.
HR’s President CEO Tom Hofstedter said “this project further diversifies HR and expands our foothold in one of the world’s largest and most prosperous metropolitan areas.”
Tishman Speyer Co-CEOs Jerry Speyer and Rob Speyer said the company “has long been committed to Long Island City and its ongoing transformation as a dynamic mixed-use district.”
HR REIT is an open-ended real estate investment trust which owns a North American portfolio of 41 office, 111 industrial and 168 retail properties comprising over 53 million square feet and 2 development projects, with a fair value of approximately $13 billion.
