Tishman Speyer and H&R Real Estate Investment Trust are moving ahead with development on another phase of Long Island City’s Gotham Center.The partnership picked up a $640 million construction loan to fund the development of the 1,789-unit luxury rental complex in the Queens Plaza area of Long Island City.
H&R paid $55.6 million for a 50% stake in the land, which it is acquired from a partnership that includes the Modell family, owners of the sporting goods chain of the same name.
Tishman Speyer, which had been one of the Modell family's partners in the site, has owned an interest in the land for over a decade, and was able to convert that stake into its ownership in the new joint venture.
The development site is bordered by Jackson Avenue to then north, LIRR/Sunnyside Yards to the south, Queens Boulevard to the east, and Orchard Street to the west.
Queens Plaza Residential Development - Site B, was assembled from eight separate properties:
- 28-10, 28-20 & 28-34 Jackson Avenue
- 30-02 Queens Blvd
- 42-02 & 42-26 West Street
- 42-01 & 42-33 Orchard Street
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The 53-story, 501,000-square-foot building at 28-34 Jackson would hold 658 apartments and a ground-floor retail space.
The other properties will be a 44-story, 521,000-square-foot tower with 683 rentals on Jackson Avenue and a 33-story, 365,000-square-foot tower with 448 rentals.
Construction will begin in 2016 and is expected to be completed in 2018. Tishman Speyer will act as the developer and project manager.
By the time the development is complete, Tishman and H&R Real Estate Investment Trust aim to build 3 towers, 1,789 residential units and about 30,000 square feet of ground floor retail.
Tishman was the developer of 2 Gotham Center, a 21-story building that was once the home to a municipal parking lot that is now leased by the NYC Department of Health & Mental Hygiene.
Toronto-based H&R acquired 2 Gotham Center from Tishman Speyer for $415.5 million in 2011.
“We are excited at the opportunity to participate with Tishman Speyer in the long-term growth and evolution of Long Island City, at the intersection of two of the area’s most important thoroughfares”, said Tom Hofstedter, the president and chief executive of H&R.
Real estate experts claim that the Queensboro Plaza/Court Square area can absorb the influx of new units.
“I welcome this development,” said Justin Elghanayan, president of Rockrose Development Corp, which owns the Linc in Court Square and is developing several other sites nearby.
“While in the short term competition can depress rents slightly, over time it brings in more retailers and is positive for the neighborhood.”
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