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

Company snagged $60M loans for hotel project

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
Slate Property's CEO Martin Nussbaum (West End 87)

Scale Lending originates $38M inventory loan for unsold UWS condos

Scale Lending originates $38M inventory loan for unsold UWS condos
Knotel CEO Amol Sarva (Sasha Maslov, Knotel, iStock)

Evictions, unpaid vendors and back rent: Lawsuits mounting against Knotel

Evictions, unpaid vendors and back rent: Lawsuits mounting against Knotel
From left: former Vornado CFO Joseph Macnow; ; Howard Hughes Corporation CEO David O’Reilly, former Cushman & Wakefield CFO Duncan Palmer (Photos via Vornado, Howard Hughes, Cushman & Wakefield)

Leadership shake-ups hit Vornado, Cushman & Wakefield and Howard Hughes

Leadership shake-ups hit Vornado, Cushman & Wakefield and Howard Hughes
B6's Paul Massey and Tom Gammino (Photos via B6; Jll)

Tom Gammino joins Paul Massey’s B6

Tom Gammino joins Paul Massey’s B6
Residential construction accounted for 44% of spending in October. (iStock)

Housing drives rise in construction spending October

Housing drives rise in construction spending October
Ken TaeHern Kim and Zhongyuan Li with Fairmont San Francisco (Linkedin, Google Maps)

Mirae Asset wins lawsuit over scrapped $5.8B Anbang hotel deal

Mirae Asset wins lawsuit over scrapped $5.8B Anbang hotel deal
Foot traffic in Union Square, the Flatiron District and Chelsea is down by 50% from February. (Getty)

Foot traffic remains low in prime Manhattan neighborhoods

Foot traffic remains low in prime Manhattan neighborhoods
Shadow inventory in Manhattan’s flex-office market is contributing to the rising overall availability rate (iStock)

WeWork and Co’s woes add to rising shadow office inventory

WeWork and Co’s woes add to rising shadow office inventory
arrow_forward_ios

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

Loading...