Massachusetts firm scores a piece of the Lendlease pie

Australian developer Lendlease is handing off its New York and New Jersey operations to Massachusetts-based firm Consigli Building Group.

Sydney-based firm Lendlease announced its departure from the U.S. market after 45 years of operation, as part of a larger exit from international construction. Consigli’s acquisition of New York-area operations includes Lendlease’s employees and up to 45 of its ongoing projects, Commercial Observer reported. 

“As Lendlease’s global strategy is redirecting its construction and development focus more closely to Australia, I am confident that our teams, under the trusted Consigli leadership, will ensure the future success for our clients and our people,” said Claire Johnston, Lendlease’s Americas CEO, in a statement.  

Lendlease, known for its megaprojects, previously worked on Central Park Tower, the National September 11 Memorial and Museum, and the expansion of Javits Convention Center. The firm had some successful projects that weathered the pandemic, including 47-story and 37-story residential towers along Chicago’s waterfront built with Magellan Development.

The firm hit a rough patch last year. Lendlease cited poor market conditions when it halted work on a $1.15 billion condo construction project in San Francisco last August. It also scuttled a $15 billion deal with Google to build homes, hotels, shops and restaurants in Silicon Valley in November. 

Those poor market conditions apparently lasted into the new year, and Lendlease established its Capital Release Unit to free up $2.98 billion USD, the Wall Street Journal reported. According to a strategy update released by the firm on Monday, the recent consolidation aims to lower risk and improve earnings.

Consigli will take over an ongoing rental tower project in Greenpoint, Brooklyn, for which Lendlease nabbed $360 million construction loan in late 2022. Consigli’s current projects include a mixed-use tower on the New Jersey waterfront and a $69 million rehab of the Lincoln Memorial.

Correction: An earlier version of this story incorrectly identified Consigli Building Group as a Long Island-based firm.

– Emily Davis