(To read more on the multifamily market, click here.)

NEW YORK CITY-The Port Authority Board of Commissioners voted to approve a transaction with the Dermot Co. Inc. and Equity Residential to develop two apartment buildings in the Hudson Yards area. The estimated cost is more than $450 million.

The firms will also develop the approach ramps on Dyer Avenue between 36th and 38th streets. The development will involve construction of platforms over the Lincoln Tunnel entrance and exit ramps. The two 18-story rental apartment buildings will be on top of the platforms.

The 650,000-gross-sf complex will contain 800 rental apartments, street level retail space, a garage, 10,000 sf of community space, and 25,000 sf of public open space. Construction on what is preliminarily named Hudson Mews is expected to begin in mid-2007. The JV is expected to apply for financing under the New York State Housing Finance Agency's 80/20 tax-exempt bond program which would require 20% of the units to be designated as affordable housing.