1.2 Million-Sq-Foot, Three-Building Mixed-Use Property Will Include High-Rise Residential and Retail
H&R 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 H&R later that same year.
In the initial phase of the new development, Toronto-based H&R 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.
H&R'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.
H&R's President & CEO Tom Hofstedter said "this project further diversifies H&R 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."
H&R 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.