New York, NY JLL Capital Markets completed the $88.5 million sale of a development site and arranged equity capitalization for the site acquisition and project development within an Opportunity Zone in Long Island City. JLL worked on behalf of the seller, a private property owner. Additionally, JLL arranged the joint venture equity partnership on behalf of the developers, The Domain Companies, L+M Development Partners and The Vorea Group, for the land acquisition and project development. Bridge Investment Group provided the LP equity for the acquisition and development of the project. The 76,000 s/f opportunity zone development site is located at 2-33 50th Ave. on the west side of 5th St. between 49th and 50th Aves. and allows a total buildable area of 444,000 s/f. The site enables the developer to create a highly attractive ground-up, mixed-use residential project in Hunter’s Point, Long Island’s City’s premier waterfront area.
The JLL Capital Markets investment sales advisory team that represented the seller was led by NY investment sales chairman Bob Knakal; vice chairmen Stephen Palmese and Brendan Maddigan and managing director Jonathan Hageman. A JLL Capital Markets Equity Advisory team working on behalf of the developers included senior managing directors Christopher Peck and Andrew Scandalios, managing directors Rob Hinckley and Jeff Julien and director Nicco Lupo.
“The site presented Long Island City’s best rental residential development opportunity in a neighborhood ready to transcend its existing rental product,” said Knakal. “A rental property is positioned to achieve record pricing for the borough, as the site benefits from proximity to mass transit and other neighborhood amenities.”
“The development team’s creativity, shared vision and swift execution was crucial to the capitalization,” Lupo said. “This development will deliver a transformative project of scale in the heart of one of New York’s most excited neighborhoods, Hunter’s Point.”
JLL completed a transaction to relocate the YAI’s International Academy of Hope (iHOPE) to 76,861 s/f at 825 Seventh Ave. in Manhattan. YAI signed an agreement to convey a 30-year leasehold condominium interest on the second, third, and fourth floors of 825 Seventh Ave., and a portion of the lower level, with property owners Vornado Realty Trust and Edward J. Minskoff Equities. iHOPE will have a dedicated entrance on 53rd St.
YAI was represented by Matthew Astrachan, vice chairman; Simon Landmann, executive vice president, and Zachary Azus, vice president, with JLL. 825 Seventh Ave. was represented by Edward Riguardi, vice president of leasing, with Vornado Realty Trust; Jeffrey Sussman, executive vice president, with Edward J. Minskoff Equities, and John Ryan III, principal, with Avison Young. Attorneys for YAI were Trevor Adler, partner, and Ida Phair, associate, with Stroock & Stroock & Lavan LLP; attorneys for the building were James Godman, partner, and Jacqueline Ryu, associate, with Kramer Levin Naftalis & Frankel LLP.
The school, which provides educational services to students with acquired brain injuries or other brain-based disorders, has outgrown its East Harlem address, relying on more advanced classroom technologies and comprehensive therapeutic services, which demand more space.
IHOPE, which first opened its doors during the 2013-14 school year, is part of YAI, one of the region’s largest not-for-profit human service providers.
YAI provides a range of services to children and adults with intellectual and developmental disabilities, including supportive housing, medical and dental care, employment coaching, socialization, and information and referral services. Operating throughout downstate New York, northern New Jersey, and California, YAI’s staff of 4,000 offer more than 300 programs, which, like iHOPE, are designed to increase independence and quality of life.
“iHOPE will take a huge leap forward with this remarkable new home,” said George Contos, CEO of YAI. “For the first time, we’ll be able to provide iHOPE students with a full breadth of educational and therapeutic services under one roof, including dedicated space for specialized therapies, state-of-the-art technology, and a mock apartment for students transitioning to independence.”
“This transaction enables YAI to expand an extraordinary school,” Astrachan said. “The world-class ownership has redeveloped the property and will provide a dedicated entrance and new elevators in an expanded footprint, enabling iHOPE to increase its student capacity and therapeutic services, including water therapy in a pool.”
JLL completed two office leases for a total of 32,112 s/f at SJP Properties’ 11 Times Square, the 1.1 million s/f commercial tower at the southeast corner of 42nd St. and Eighth Ave. in Manhattan. The leases bring the building to 96% occupancy. Paige signed a 24,412 s/f direct renewal and expansion lease for the partial 37th floor. RLI Corp. signed a 7,700 s/f lease for the partial 33rd floor. JLL’s Paul Glickman and Mitchell Konsker, vice chairmen; Daniel Turkewitz, executive managing director; Diana Biasotti, senior vice president; and Kristen Morgan, associate vice president, represented property owner SJP Properties in both transactions. Paige was represented by Neil Goldmacher, chairman, national tenant representation; and Josh Friedman, executive managing director, with Newmark. RLI Corp. was represented by Martin Horner, international director and T.J. Hochanadel, executive vice president, with JLL. Alexander Erdos, SJP Properties’ senior vice president — leasing and marketing, represented the building owner in-house on both leases.
Among the most technologically advanced commercial buildings ever constructed in Manhattan, the Dan Kaplan-designed 11 Times Square features unparalleled light and air from floor-to-ceiling windows; cleaner, healthier LEED Platinum-level indoor air quality from a highly advanced air filtration system; and greater floor-plan flexibility from column-free floorplates. The building boasts a diverse roster of high-caliber tenants across finance, technology, law and media that includes Proskauer and Microsoft as its anchors, as well as Kepos Capital, E*TRADE and eMarketer.
The 40-story tower, which serves as SJP Properties’ own headquarters, is ideally located at the gateway to Midtown’s West Side, with numerous restaurants, hotels and amenities within the immediate vicinity. It offers superior access to transit, including immediate access to 12 NYC subway lines and the Port Authority Bus Terminal - with 2,000 commuter parking spaces - directly across the street, in addition to being within walking distance of Penn Station, Grand Central Terminal and Bryant Park,
“Tenants today demand an optimized workplace that is efficient, sustainable, healthy and convenient for their professionals,” said Erdos. “11 Times Square is perfectly positioned to meet these exacting requirements, while providing a vibrant, headquarters-quality environment that gets employees excited about coming into the office.”
“11 Times Square stands out in the market based on the quality of its construction and infrastructure, as well as its extraordinary views and easy access to transportation,” Biasotti said. “The property, which is ideally positioned between Bryant Park and the new West Side, has demonstrated consistent leasing momentum.”
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