Tishman Speyer Seeks Tax Incentives for $707M LIC Project
Lauren Elkies Schram April 26, 2016, 5:32 p.m.
An affiliate of Tishman Speyer is looking for tax breaks in connection with the construction of a $706.7 million two-tower Class A commercial project in Queens, according to the company’s benefits application with the New York City Industrial Development Agency.
Tishman Speyer is seeking $65 million in city tax exemptions and deferrals for the development, NYCIDA documents indicate. Of the $65 million, $8.3 million are NYCIDA benefits, a NYCIDA spokesman explained, and $56.6 million are Industrial and Commercial Abatement Program, or ICAP, benefits provided through the New York City Department of Finance.
The money would contribute to the acquisition of the 71,692-square-foot site at 28-10 Queens Plaza South and the erection of the development. Of the $706.7 million, $10.8 million is allocated for land acquisition, $388.4 million is for construction hard costs and $72.7 million is for soft costs.
Construction is slated to commence next year and the project should be open three years later.
The 26-story property will contain 1.1 million square feet of office space, 20,000 to 40,000 square feet of retail space and a 388-space, 80,000-square-foot parking garage, according to the cost/benefit analysis by the NYCIDA, a division of New York City Economic Development Corporation. WeWork signed a lease for 285,000 square feet in one of the buildings, The Real Deal previously reported.
Tishman Speyer is also looking to raise $145 million in EB-5 financing for the two structures, dubbed One and Three Gotham Center, TRD noted.
Meanwhile, as Commercial Observer previously reported Tishman Speyer and H&R Real Estate Investment Trust are developing Two Gotham Center, the 1.2-million-square-foot, 1,789-unit rental complex across the street, on a parcel of land bound by Queens Boulevard, Jackson Avenue, Orchard Street and the Sunnyside Yards.
NYCIDA will hold a public hearing on the tax incentives on May 5.
LICPost first reported news about Tishman Speyer seeking tax incentives.
A spokesman for the developer declined to comment.