NEW YORK CITY—H&R Real Estate Investment Trust has agreed to form a joint venture with Tishman Speyer to develop a landmark luxury residential rental development in the growing Long Island City neighborhood of Queens. Tishman Speyer will act as the developer and manager of the Project.
The parcel is zoned for 1.2 million square feet of mixed-used development, potentially accommodating up to approximately 1,600 rental units and approximately 30,000 square feet of retail space developed in three phases. The site is adjacent to 2 Gotham Center, a fully-leased, state-of-the-art, 670,000 square foot office tower that was developed by Tishman Speyer in 2011 and acquired by H&R later that same year.
In the initial phase of the new development, H&R and Tishman Speyer plan to construct a 42-story tower, which will include 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, which was at a substantial discount to appraised value. Tishman Speyer has had an interest in its share of the land since 2003. The total project cost of all phases at the 100% level is expected to be approximately $875 million.
"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", says Tom Hofstedter, H&R president & CEO. "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 add, "Tishman Speyer has long been committed to Long Island City and its ongoing transformation as a dynamic mixed-use district. We are very pleased to partner with H&R as we seek to build upon the neighborhood's growing vitality."
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
