NEW YORK CITY-In a game changer for the Long Island City market, Tishman Speyer Properties has sold its 22-story, 670,000-square-foot Two Gotham Center to Toronto-based H&R REIT for $415.5 million, making it one of the largest office trades in the borough’s history. CBRE’s vice chairmen Darcy Stacom and Bill Shanahan along with senior vice president Paul Gillen represented Tishman Speyer on the transaction, in partnership with Square Mile Capital LLC and the Modell Family. CBRE Capital Markets team in Tampa arranged the acquisition financing.

The building--which was completed last year--is 100% leased to the New York City Department of Health & Mental Hygiene for a 20-year term. Shanahan says the groundbreaking deal underscores the continued transformation of Long Island City from an industrial center to a class A business destination. “Its proximity to a major transportation hub, along with cutting-edge green technology and breathtaking views of Manhattan makes it an attractive, high-end alternative to Midtown,” he says, in a statement following the closing.

The property is part of a two-block development that will contain approximately 3.5 million square feet of new office, retail, parking and residential development. The site is also located in close proximity to the MTA’s newly-renovated Court Square subway terminal, which now links the G and 7 trains with the E and M trains at 23rd Street and Ely Avenue into one cohesive station.