Taconic-led JV to develop Times Square-area rental tower

Partners finalizing 99-year ground lease for 1199SEIU’s headquarters

New York /
Apr.April 16, 2018 05:10 PM

Charlie Bendit, Paul Pariser, Jeff Kanne and the parking lot at 311 West 42nd Street (Credit: Taconic, National Real Estate Advisors and Google Maps)

Taconic Investment Partners and National Real Estate Advisors teamed up to gain control – via a long-term ground lease – of the 1199SEIU union’s Times Square headquarters, where the partners plan to build a $250 million rental tower.

The joint venture plans to finalize a 99-year lease later this week for the parking lot at 311 West 42nd Street and the office building at 310 West 43rd Street, Crain’s reported.

The 1199SEIU healthcare workers’ union last year signed a lease to relocate its offices to George Comfort & Sons’ 498 Seventh Avenue.

Taconic chief investment officer Chris Balestra said the cost of the ground lease allows the partners to build a 35-story rental tower, rather than a condominium development that would likely be built if they had to buy the land outright.

“It’s extremely difficult to find rental residential sites in Manhattan,” he said. “This is the type of deal we’re always on the lookout for.”

The union will vacate the office space in two years. In the meantime, Taconic and National Real Estate Advisors will work on hiring an architect and designing the building, which will have about 60,000 square feet of retail space that the developers hope will capitalize on Times Square foot traffic.

The project is expected to be completed in 2022. Cushman & Wakefield’s Adam Spies and Kevin Donner arranged the ground lease. [Crain’s]Rich Bockmann


Related Articles

arrow_forward_ios
From left: McSam Hotel Group's Sam Chang and SL Green's Marc Holliday with 711 Seventh Avenue  (Getty, Google Mpas, SL Green)
Times Square hotel developer sues neighbors over delayed demolition
Times Square hotel developer sues neighbors over delayed demolition
East Hampton Town Supervisor Peter Van Scoyoc and 350 Pantigo Road (Zillow, Getty, Town of East Hampton)
Hamptons town could buy former department store land to build homes
Hamptons town could buy former department store land to build homes
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
Napa Valley hot-air-balloon business lists for $12M
A photo illustration of the proposed Lower Platte River Corridor (Getty, Plan Preserve Play NE)
Nebraska lawmakers mull digging $1B recreation lake
Nebraska lawmakers mull digging $1B recreation lake
From left: Silverstein Properties CEO Marty Burger; BedRock Real Estate Partners co-founder Tracey Applebaum; Council member Julie Won; a rendering of Innovation QNS in Astoria (Getty, BedRock Real Estate Partners, New York City Council)
Council approves Silverstein, BedRock’s $2B Innovation QNS
Council approves Silverstein, BedRock’s $2B Innovation QNS
Illustration of Stefan Soloviev (HaydenSoloviev, CC BY-SA 4.0, via Wikimedia Commons, Getty)
Soloviev bets long-dormant Midtown East site in casino sweepstakes
Soloviev bets long-dormant Midtown East site in casino sweepstakes
CHIP's Jay Martin and HCR Commissioner RuthAnne Visnauskas (Getty)
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
Lies, damn lies, and statistics: Did rent-stabilized vacancies really fall?
PulteGroup's Ryan R. Marshall and RedFin's Glenn Kelman (PulteGroup, RedFin, Getty)
Wall Street is bidding up housing stocks again
Wall Street is bidding up housing stocks again
arrow_forward_ios

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

Loading...