Tishman Speyer is pursuing $65 million worth of tax benefits for its 1.1 million-square-foot office development in Long Island City, which will cost more than $700 million.
The developer applied for $56.6 million worth of benefits under the city’s Industrial and Commercial Abatement Program, which exempts commercial projects in certain parts of the city from increased taxes resulting from renovating or building new projects, the Commercial Observer reported.
Tishman is also seeking another $8.3 million in benefits from the New York City Industrial Development Agency, the site reported.
The funds would go toward the acquisition of a 71,692 square-foot site at 28-10 Queens Plaza South, where Tishman plans to develop 1.1 million square feet of office space and up to 40,000 square feet of retail.
Tishman, which unveiled plans in February for its Bjarke Ingels-designed office tower in Hudson Yards, has already signed WeWork on to lease 285,000 square feet at the Long Island City project, as The Real Deal previously reported.
The company is looking to fund the two-building complex, which will be known as One and Three Gotham Center, with $145 million in EB-5 financing.
The project sits next door to Two Gotham Center, the 22-story office building Tishman developed in 2011 and sold later that year to Canadian investor H&R REIT for $415.5 million. The two companies are partnering two develop a three-building, 1,900-unit residential rental project nearby.
Construction of the buildings is scheduled to kick off next year, with completion slated for 2020.
The NYCIDA has scheduled a public hearing regarding the incentives for May 5.
[CO] – Rich Bockmann