H&R Real Estate Investment Trust has joined Tishman Speyer as a 50 percent joint venture partner in the development of a luxury residential project in Long Island City, Queens.
The development site, located adjacent to H&R-owned 2 Gotham Center, is zoned for 1.2 million square feet of mixed-use development. The plot can accommodate up to 1,600 rental units and approximately 30,000 square feet of retail space, according to a statement.
In the first phase of development, the partners plan to construct a 42-story, 700-unit rental tower. Construction is slated to begin next year with occupancy expected beginning in 2017. Tishman Speyer will act as the developer and project manager.
The total project cost of all phases is estimated to be approximately $875 million. Tishman Speyer has owned an interest in its share of the land for over a decade. H&R’s share of the total land cost is $55.6 million, according to a statement.
“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, in a prepared statement. “This project further diversifies H&R and expands our foothold in one of the world’s largest and most prosperous metropolitan areas.”
Toronto-based H&R acquired 2 Gotham Center, a commercial development leased to the New York City Department of Health, from Tishman Speyer for $415.5 million in 2011.