Student Housing: SL Green to Build Student Housing Downtown
By Paul Bubny for GlobeSt.com
NEW YORK CITY-A partnership of SL Green Realty Corp. and Jeff Sutton plans to build a 24-story 180 Broadway for retail space and Pace University student dormitory housing. The partnership is a joint venture with Israel-based Harel Insurance and Finance; a spokesman for SL Green tells GlobeSt.com this is the REIT’s first foray into student housing.
The JV on Monday also announced the closing of a new five-year, $90-million construction loan facility led by Helaba Bank. Under the agreement with Pace, the JV will develop a 24-story building at the site, located across the street from the $1.4-billion Fulton Street transit hub slated for 2014 completion, and the university will take a long-term ground lease condominium interest for 20 floors of student housing.
The JV partners will retain ownership interest of the three bottom floors through a separate condo interest, with the idea of leasing that space to one or more upscale retail tenants. One of the upper floors will be reserved for student activities and amenities.
“We believe this property, when combined with the openings of the transit hub and the World Trade Center-related developments, will be an ideal home to premier retail tenants looking to take advantage of the resurgence of this Broadway corridor,” SL Green president Andrew Mathias says in a release. SL Green/Sutton will retain a 51% controlling interest in the entire property, which is expected to be delivered in 2013.
According to a release from Pace, the agreement with SL Green/Sutton will fulfill an objective of the university’s five-year strategic plan to put all of Pace’s Downtown students within a five-minute walk from the Manhattan campus, located near City Hall. Although Pace was founded in 1906 as a commuter school, more than half its undergraduate students now live on campus.
The 180 Broadway housing will replace approximately 600 beds currently leased in Brooklyn, according to the university. Other Pace residences Downtown are at 55 John St., 106 Fulton St. and in the university’s multi-function building at 1 Pace Plaza, just east of City Hall. The university says its Pleasantville, NY campus is slated for consolidation and redesign.
David Falk and Kyle Ciminelli of Newmark Knight Frank and Jack Bart of Stroock & Stroock & Lavan LLP acted on behalf of Pace in this transaction, while Haynes and Boone LLP attorneys Stuart Mass and Noah Shapiro, along with Fried, Frank, Harris, Shriver & Jacobson LLP, represented SL Green. Ben Shaoul of Magnum Management provided pre-development development, and advisory services to the partnership, according to a release.