State set to provide $270M in financing for Rockrose LIC tower

Court Square building will set aside 20 percent of 974 units as affordable

New York /
Apr.April 03, 2015 02:35 PM

New York state housing officials are getting ready to provide $270 million in financing for Rockrose Development’s 974-unit rental project in Long Island City.

“Historically, you haven’t seen a lot of 80/20 in the outer boroughs,” Rockrose President Justin Elghanayan told The Real Deal. “What’s happening now is that Long Island City and other areas are getting so desirable to live in that the market-rate rents have gotten to the level [where the program makes financial sense].”

The state Housing Finance Agency is set to vote later this month on a proposal to provide Rockrose with a $270 million first mortgage on the planned towers – one 14 stories and another 50 – in the neighborhood’s Court Square section at 43-25 Hunter Street. The loan will be financed through of a mix of tax-exempt and taxable bonds to be purchased by Wells Fargo and a consortium of other banks.

Rockrose, in turn, will set aside 20 percent of the apartments – or 195 units – for renters earning up to 60 percent of the area median income for a period of 30 years. This will be  the developer’s first 80/20 project outside of Manhattan.

Market-rate rents in the building will average $53 per square foot, a marked increase from the low-$40-figure Rockrose proforma-ed the nearby Linc LIC rental tower the company began building in 2010, Elghanayan said.

Long Island City in general is booming with large rental projects and developers are particularly interested in the Court Square area, which has strong transit connections to Manhattan. Rockrose alone has 2,500 units in the pipeline for the area.

The Hunter Street project is expected to cost $531 million to develop, inclusive of land-acquisition and soft-development costs, according to HFA documents. Rockrose will put up just less than half of that figure in equity, a combination of cash and the value of the land.

Before Rockrose split into two separate firms – Rockrose and TF Cornerstone – in 2009, the company had developed several 80/20 projects in Manhattan, But The Hunter Street development marks the first for Rockrose outside the borough.


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Cornerstone Structures' James Guerriero and 201 North Division Street in Peekskill, New York (LinkedIn/James Guerriero, Google Maps)
Developer proposes 125-unit project in Peekskill
Developer proposes 125-unit project in Peekskill
Leslie Alexander with 1117 Main Road in Riverhead (top) and 2045 Sound Avenue in Mattituck (Getty, Compass)
Leslie Alexander lists pair of North Fork properties with development rights
Leslie Alexander lists pair of North Fork properties with development rights
854 Fifth Avenue (Douglas Elliman)
Gilded Age mansion trades for $50M in all-cash deal
Gilded Age mansion trades for $50M in all-cash deal
Des McAnuff and 10 Dragonwood Lane in Weston, Connecticut (Getty Images, Zillow)
Broadway director’s home sale notches Weston’s 17-year sales peak
Broadway director’s home sale notches Weston’s 17-year sales peak
Divvy Homes CEO Adena Hefets (LinkedIn, Illustration by The Real Deal with Getty)
Divvy Homes cuts 12% of staff
Divvy Homes cuts 12% of staff
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...