The Real Deal New York

MCR, JetBlue to invest $265M in JFK hotel project

Port Authority estimates total rent of $70 million over the 75-year lease term

September 25, 2015 10:38AM

TWA Terminal JFK MCR Development

The former TWA terminal at JFK airport

MCR Development and JetBlue are settling into JFK for the long haul. The partners plan to sign a 75-year lease and invest $265 million into renovating the former TWA terminal and build a pair of six-story hotels on the site.

The Manhattan-based MCR, which owns and operates 89 hotels around the country, will own 95 percent of the project.

The Port Authority of New York and New Jersey plans to charge the partners a fixed rent, which it estimates will total $70 million over the life of the lease, according to a statement from the agency.

About $200 million will go towards construction, with the remaining $65 million dedicated to renovations at the 1960s-era Eero Saarinen-designed terminal, according to a spokesperson from MCR.

The agency announced its selection MCR and JetBlue for the project last week. The hotels on the six-acre site will have 505 rooms between them. The terminal has been closed since 2001. Beyer Blinder Belle and Lubrano Ciavarra Architects have been hired to design both hotels.

The Port Authority plans to spend $20 million to maintain the terminal, and another $8 million to connected the hotels to JetBlue’s terminal at the airport. – Ariel Stulberg

Correction: A previous version of this article identified MCR as based in Texas. While the company has an office in Dallas, it’s headquartered in New York.