AJ Capital Partners inks 65-year ground lease for Cornell Tech hotel

Company snagged $60M loans for hotel project

TRD New York /
Mar.March 16, 2018 03:00 PM

Rendering of the education center and hotel (Credit: Cornell Tech and Snøhetta)

AJ Capital Partners inked a 65-year ground lease for a site on Roosevelt Island where the company and Cornell Tech are building a 224-key hotel.

The lease includes a site adjacent to the Verizon Executive Education Center on North Loop Road where the firm and University are developing a Graduate-branded hotel. The deal is valued at $113 million, which would mean installments of $1.7 million each year — if paid equally across six-and-a-half decades. According to a lease agreement filed with the city on Thursday, AJ Capital has first dibs on buying the property if Cornell decides to sell the site. Both the education center and the hotel — which are connected — are designed by Snøhetta.

Representatives for AJ Capital and Cornell didn’t immediately return messages seeking new information.

Construction on the 18-story hotel began earlier this week, as reported by Curbed. It’s expected to open in 2020. The Commercial Observer first reported that AJ Capital secured $60 million from Emigrant Savings Bank for the hotel. The sum includes a $33.4 million building loan and a $26.6 million project loan.

The first three buildings planned for the 12-acre Cornell Tech campus opened late last year, and the three-phase project is expected to be complete by 2043.


Related Articles

arrow_forward_ios
28 Liberty Street (Wikipedia)

Manhattan’s office leasing sees busiest month since January

Manhattan’s office leasing sees busiest month since January
Maison Kayser (Photo via Tools of Men via Flickr)

Maison Kayser may bid New York adieu

Maison Kayser may bid New York adieu
Newmark’s Brian Waterman with 7 Hanover Square (Google Maps, Twitter)

Newmark nabs REBNY prize for deal with NYC Health + Hospitals

Newmark nabs REBNY prize for deal with NYC Health + Hospitals
The legislation from a City Council member introduced a bill to temporarily repeal the commercial rent tax for businesses during the Covid-19 state of emergency. (Getty, iStock)

Commercial rent tax cut introduced in City Council

Commercial rent tax cut introduced in City Council
Michael Rudder, James Nelson, 141 Wooster Street and 633 Third Avenue (Google Maps)

The Outlook: Industry experts break down Manhattan’s office condo market

The Outlook: Industry experts break down Manhattan’s office condo market
Peter Nicoletti and Colliers' David Amsterdam

Colliers taps JLL’s Peter Nicoletti to lead capital markets

Colliers taps JLL’s Peter Nicoletti to lead capital markets
City Council member Keith Powers (Getty)

Pol, biz groups: Suspend rent tax, extend outdoor dining

Pol, biz groups: Suspend rent tax, extend outdoor dining
Only 9 percent of workers had returned to Midtown and 8 percent to Downtown. (iStock)

Where is everybody? City workers still home

Where is everybody? City workers still home
arrow_forward_ios

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

Loading...