The Real Deal New York

Long Island Cheat Sheet: RXR Realty sues development partner Renaissance Downtowns … & more

By Aidan Gardiner | September 10, 2018 06:15PM

Clockwise from top left: Officials drop plan to seize Islandia horse farm through eminent domain, RXR Realty sues development partner Renaissance Downtowns for $9M, $1.5B development project picked for area around Nassau Coliseum and Waterfront Sagaponack compound with Kennedy past lists for $35M.

RXR Realty sues development partner Renaissance Downtowns, potentially upending 2 major projects 
The future of two major revitalization projects— one in the village of Hempstead and one in Huntington — became unclear when RXR Realty sued its development partner Renaissance Downtowns for $9 million. RXR said that “in light of irreconcilable differences between RXR and Renaissance, the projects will not be going forward and will not be completed,” Newsday reported. The suit added that “RXR does not trust Renaissance, and can no longer do business with Renaissance.” The firms had been working as a single entity, RDRXR LLC, on the two projects. The suit alleges that Renaissance spent more than $3.1 million in the joint firm’s funds without RXR knowing, paying for a “misguided political strategy in last year’s mayoral race in the village of Hempstead.” Renaissance has entered into arbitration with a neutral third party, according their attorney Sean McAloon of Rivkin Radler. [Newsday]

RXR Realty selected to build $1.5B Nassau Coliseum hub project with BSE Global 
RXR Realty and BSE Global officially agreed to build and finance a $1.5 billion project around the Nassau Coliseum including housing, retail and office space, Newsday first reported. Nassau County Executive Laura Curran expects to get legislative approval for the project as early as October. RXR would be the “master developer,” building 500 housing units, 600,000 square feet of office space, 200,000 square feet of experiential retail, two pedestrian bridges and 3,400 parking spots. BSE Global chief executive Brett Yormark has wanted to develop the area around the Coliseum since it was renovated last year and met with about a dozen developers before picking RXR. BSE and RXR plan to partner with another company that specializes in retail and entertainment destinations. [Newsday]

Kennedy family compound in Bridgehampton lists for $35M
A Sagaponack Pond compound that boasts connections to American royalty has just hit the market for $35 million. One of the two parcels in the compound is owned by the estate of Joseph P. Kennedy, father of President John F. Kennedy. The other is owned by the patriarch’s last surviving daughter, Jean Kennedy Smith, 90. The 6,000-square-foot main house, which is owned by Jean, was built in 1850 and sits on 4.9 acres on the water’s edge. It has six bedrooms, six bathrooms, a dock, a pool and a tennis court. The other cottage, at 2,850 square feet, contains four bedrooms, has its own pool within the property’s 5.27 acres, according to Mansion Global. Corcoran’s Michael Schultz and Susan Ryan are handling the listing. [Mansion Global]

BEB Capital buys Port Washington warehouse for $9.35M
BEB Capital bought a massive warehouse with five loading docks in Port Washington for $9.35 million. The 56,745-square-foot building has 30,000 square feet of warehouse space with the rest devoted to office or flex space, along with 89 parking spots. BEB hopes to upgrade the facility by raising its ceilings, increasing its storage capacity, refurbishing the exterior and maybe installing some solar panels. Dan Oliver of Newmark Knight Frank will handle the building’s leasing. [LIBN]

Officials drop plan to seize Islandia horse farm through eminent domain
Islandia Village officials have backed off a plan to use eminent domain to seize property belonging to a nonprofit horse therapy farm in order to transform it into a truck and public works yard. The owners of the plot only heard about the officials’ intentions when a reporter called them about it. At the time, Pal-O-Mine Equestrian was in contract to buy the property and ended up closing the deal two weeks later. With that plot, the nonprofit owns 13 acres spanning four contiguous properties. Though town officials have gone in another direction, they said they still would like a public works yard like the one they’d planned to put there in order to respond faster to storm-related emergencies. They are considering other properties now. [Newsday]