Via Verde Affordable Housing in the Bronx Wins ULI Award Workforce Housing Model of Excellence

By Veronica Grecu, Associate Editor

An eco-friendly housing development in the Bronx has become one of three projects nationwide to receive the 2012 Jack Kemp Workforce Housing Model of Excellence Award from the Urban Land Institute (ULI). The award, which was announced recently during the national conference of ULI in Denver, is named after Jack Kemp—former U.S. Secretary of Housing and Urban Development (HUD) and former U.S. Representative—and recognizes and honors developers who demonstrate leadership and creativity in providing housing opportunities for working communities.

In order to be eligible for this award, housing developments are required to be affordable and energy efficient, be located close to centers of employment and transportation hubs, use innovative building technologies and systems, and demonstrate the highest level of green construction sustainability.

The 296,000-square-foot Via Verde opened in the summer of 2012 as a mixed-use, mixed-income residential building located at 700-706 Brook Avenue and 156th Street in the Melrose section of the Bronx on a triangular site formerly occupied by a railroad storage yard and a gas station. The 1.5-acre parcel was decontaminated under the New York State Brownfield Cleanup Program.

The $98.8 million project was co-developed by Phipps Houses and Jonathan Rose Companies, who worked closely with Harlem-based Lettire Construction—the general contractor. Created by co-architects Dattner Architects and Grimshaw Architects, the LEED Gold-certified project showcases a highly innovative green design while providing affordable housing options to low- and moderate-income families and individuals.

Via Verde consists of 151 rental units designed affordable for the next 30 years and 71 middle-income co-op units targeted to households earning 80 to 100 percent of the area median income. Co-ops at Via Verde feature spacious floor plans with hardwood floors, remote control ceiling fans, in-unit washers and dryers, and luxury kitchens equipped with Energy Star appliances and dishwashers.

Select units feature balconies, private backyards and duplex layouts. Building amenities include a landscaped courtyard designed by Lee Weintraub Landscape Architecture, an attended lobby, an amphitheater, a fitness center, a penthouse community room, bicycle storage and resident gardening beds. The development also includes a 5,000-square-foot community facility on the ground floor and 2,000 square feet of retail space.

With its green rooftops and building-integrated photovoltaic panels, Via Verde is estimated to be over 30 percent more energy efficient than a standard residential building. About 20 percent of the building materials used for construction was locally manufactured, minimizing transportation energy and supporting local economy. An equal part of construction materials came from recycled and reused materials, and over 80 percent of the demolition waste came from the facilities that formerly occupied the site was recycled.

For more market data from New York City, click here.

Renderings via www.viaverdenyc.com

JV Breaks Ground on $500M Luxury Residential Tower

By Veronica Grecu, Associate Editor

Work has begun on a $500 million luxury apartment tower developed by a joint venture between local Zeckendorf Development LLC and Global Holdings Inc. Designed to become a prime international location by London-based architectural firm Foster + Partners, the 44-story tower will rise within the prestigious United Nations Plaza overlooking the UN Headquarters and the Manhattan skyline.

50 United Nations Plaza is expected to open at the end of 2014. It will include 87 apartments with generous layouts ranging in size from 1,100 square feet for one-bedroom units to 3,000 square feet for three-bedroom apartments. Every apartment unit will feature floor-to-ceiling bay windows varying from 10 to 16 feet and luxurious interiors with vast entertaining areas, according to a project description by Foster + Partners.

For prospective residents looking for even larger units, the design plans also include full-floor homes of 6,000 square feet and a two-floor penthouse with 10,000 square feet of living space and an infinity pool cut out from the tower’s top level. Residents will also have access to an exclusive garage with 87 parking spaces, a private garden leading to a lobby and a high-end restaurant. In addition, the structure will encompass around 5,000 square feet of ground floor retail space.

The building’s scale will be visually attenuated by three slender volumes and the use of vertical stacks of bay windows linked horizontally by stainless steel tubes. By incorporating a mix of green features such as recycled materials, highly insulated glazing and reflective panels, the tower will be one of New York City’s most environmentally friendly apartment buildings.

Rendering of 50 United Nations Plaza courtesy of Fosters + Partners

$14M Supportive Housing Project for Veterans Opens in the Bronx

By Veronica Grecu, Associate Editor

A ribbon-cutting and recognition ceremony held on Nov. 8 marked the grand opening of Kingsbridge Terrace Veterans Residence—a six-story housing facility dedicated to New York City veterans who served in Iraq and Afghanistan, as well as for those struggling with homelessness and substance abuse.

Located at 2701 Kingsbridge Terrace, the $14 million building is within walking distance to the VA hospital in the Bronx. The newly inaugurated residence, along with Fordham Village, are the first housing facilities solely designated for homeless veterans to be built in New York City in over 15 years.

Both complexes were funded by the Jericho Project Veterans Communities—a non-profit organization founded in 1983 that now serves as a supportive housing agency, providing veteran-specific counseling programs and supportive and affordable housing to low-income families and individuals.

Kingsbridge Terrace was designed by Oaklander, Coogan & Vitto Architects (OCV) to achieve LEED Silver certification. In keeping with the company’s commitment to sustainable building practices, the 44,000-square-foot building employs green roofs, energy-efficient HVAC systems and appliances, a micro turbine for waste energy capture and reuse, and locally sourced, recycled and renewable building materials.

The new residence includes 76 units of supportive housing, each of them featuring a kitchenette and full-sized bathroom en-suite, as well as computer labs, fully equipped gyms, gardens and outdoor recreational spaces. Additionally, the new residence was designed to be more than just housing, but an attractive place “for veterans to call home,” said Executive Director of Jericho Project Tori Lyon at the opening ceremony.

Click here for more market data on New York City.

Images of Kingsbridge Terrace Veterans Residence courtesy of OCV Architects

LEED Gold Certification Awarded to Iconic Chrysler Building; LinkedIn Doubles Presence at Empire State Building

By Veronica Grecu, Associate Editor

The U.S. Green Building Council has awarded the LEED Gold-EBOM designation to New York City’s iconic Chrysler building. The certification comes one year after owner Tishman Speyer, a leading real estate development and investment company, embarked on a complex retrofit project at the skyscraper located on the east side of Manhattan at the intersection of 42nd Street and Lexington Avenue.

A classic example of Art Deco architecture, the building was designed in 1928 by famed architect William Van Alen for Walter Chrysler, founder of the Chrysler Corporation. Rising 1,046 feet high, the 1,195,000-square-foot building became the tallest structure in the world in 1930 when it was completed, a record that was broken in 1931 by the Empire State Building.

To receive the LEED Gold-EBOM (Existing Buildings: Operations and Maintenance) certification, Tishman Speyer implemented several environmentally friendly strategies such as decreasing energy use by 21 percent by upgrading and adjusting the building’s operational system. Also, all water fixtures were replaced with more efficient equipment to reduce water consumption by 64 percent, while the building’s waste policy was reviewed and improved to raise the recycling rate to 81 percent.

With this new designation, Tishman Speyer currently has over 5.7 million square feet of LEED-certified office space in New York City and over 46 million square feet worldwide.

“Our commitment to sustainability is very strong, and our investment partners care deeply as well,” said Tishman Speyer co-CEO’s Jerry and Rob Speyer in a company press release. “In addition, we find that more and more of our tenants are looking to work collaboratively with us to maximize the results of our efforts. The LEED® and other equivalent designations tell us that we are succeeding in this very important area.”

In further CRE news, Crain’s New York Business reports that one of the most popular social networking company for business professionals has almost doubled its presence in the Empire State Building. Mountain View, Calif.-based LinkedIn signed a 10-year lease for another 40,780 square feet of space on the 23^rd floor. The new space adds to the existing 32,000 square feet—or the entire 25^th floor—that the tech company leased in mid-2011.

Click here for more news from New York City.

Photo of Chrysler Building credits to author WestportWiki on Wipipedia

Chart courtesy of Marcus & Millichap

Three Majestic Redevelopment Proposals Pitched for Grand Central Station’s Upcoming Centennial

By Veronica Grecu, Associate Editor

One of New York City’s most iconic places, Grand Central Station—located at 42^nd Street and Park Avenue in Midtown Manhattan, is just months away from celebrating its centennial. To honor this milestone and breathe new air into this historic area, the Municipal Art Society of New York (MAS) has invited three acclaimed architectural firms—Skidmore, Owings and Merrill (SOM); Foster + Partners; and WXY Architecture + Urban Design—to propose design ideas for Grand Central and the surrounding area.

Built between 1903 and 1913 under designs by New York architects Warren and Wetmore, the commuter rail terminal station attracted 150,000 visitors on its grand opening day on February 2, 1913. Currently around 750,000 people (or ten times its capacity) transit the terminal each day and, according to an Epoch Times article, the number of commuters could grow even more as the adjacent urban areas could get an additional 16,000 residences by 2030.

In order to balance out the projected increase in traffic and transform the building into a majestic public space, the three selected architecture firms created innovative designs that were presented during the 2012 MAS Summit earlier this month.

The designed proposed by SOM focuses on larger pedestrian corridors, increased public spaces and a state-of-the-art circular pedestrian “observation deck” suspended above Grand Central offering a stunning 360-degree panorama of the city. The circle-like deck would move upwards from the cornice of the terminal to the city’s skyline. New office and retail facilities are also included in the design; if approved, the project would meet the economic growth in the area.

WXY’s design proposal calls for nature-inspired vast urban investments that would make the terminal more pedestrian-friendly and enhance public green spaces and access points for city dwellers and visitors. According to ArchDaily, Vanderbilt Avenue would become a pedestrian-only street, and new public spaces would be created at the base of the MetLife building.

Also, a new tower with green roofs and terraces would be built on the west side of the existing terminal, while the west side of the Park Avenue viaduct would be transformed into an elevated pedestrian and bicycle path.

The third design was proposed by Foster + Partners and calls for street reconfiguration to ease vehicle and pedestrian accessibility, wider sidewalks, a pedestrian-only Vanderbilt Avenue and new public spaces. A large public space with trees, sculptures and cafes would be created between 43^rd Street and Grand Station’s west terminal, while a similar plaza would be created to the north to ease the entrances to the East Side Access lines.

Click here for a detailed market report on New York City.

Renderings courtesy of SOM, WXY and Foster + Partners respectively, via ArchDaily

Times Square Prepares for New Hyatt Place; $16 Million Renovation Completed at Hilton Long Island

By Veronica Grecu, Associate Editor

Developer 41^st Midtown LLC has reached a management agreement with Stanford Hotels Corp., an affiliate of Chicago-based Hyatt Hotels Corporation, to build a new Hyatt Place hotel in New York’s vibrant Times Square and within walking distance of Avenue of the Americas, one of the densest office corridors in the city.

According to an official statement, the 24-story Hyatt Place Times Square will be located on 41^st Street between Sixth Avenue and Broadway and will include 130 upscale guest rooms designed in the authentic hospitality style for which Hyatt is known worldwide. Each room will feature state-of-the-art technological amenities and work and relax areas such as a plush Hyatt Grand Bed and a large sofa sleeper to accommodate the needs of business travelers.

“Hyatt is actively expanding the Hyatt Place brand throughout United States, and we are excited to be working with Stanford Hotels on their first Hyatt Place hotel in New York,” said Jim Chu, senior vice president of franchise and owner relations for Hyatt Hotels & Resorts, in a recent press release. Construction at the site is scheduled to begin in the second quarter of 2013.

In further hospitality-related news, hotel investment and management company Dow Hotel Company (DHC) has finished a $16 million renovation project at the Hilton Long Island/Huntington hotel in Melville, N.Y. The 304-room hotel was in need of rehabilitation and repositioning in the market when it was acquired by DHC in the summer of 2001.

After completing an extensive market study on the area, the company embarked on a complex makeover of the building located at 598 Broad Hollow Rd., striving to create a quality meeting point and social event hotel that was much needed in the area.

Renovation plans included all aspects of the hotel’s interior, from carpeting and beds to furniture and artwork, which were enhanced to meet the expectations of Hilton guests. The hotel’s executive lounge was transformed into a private business center, and the 26,000-square-foot ballroom—the largest in the area—was reimagined and updated to accommodate up to 1,200 people.

Click here for more market data from New York City.

Image courtesy of Hilton Long Island website

Lightstone Group Gets $51M Construction Loan for Upscale Multifamily Project in Queens

By Veronica Grecu, Associate Editor

Manhattan-based development company The Lightstone Group, along with its branch Lightstone Value Plus Real Estate Investment Trust (LVPR), has recently closed a $51 million construction loan with the Canadian Imperial Bank of Commerce (CIBC) and plans to use the funds to create a multifamily complex in Queens Borough’s Long Island City. Work has already stated at the site with a delivery date set for April 2014.

The 184,000-square-foot construction site was purchased by Lightstone in 2011 from a local landlord for $19.3 million, or around $105 per buildable square foot, says Real Estate Weekly.

This is Lightstone’s first project to actually break ground in New York City, according to Crain’s New York Business, and one of several other projects that the company has underway in the metro area, including a 700-unit residential rental development planned for 363-365 Bond St. and 400 Carroll St. in Brooklyn and a 600,000-square-foot upscale outlet mall at 2505 Bruckner Blvd. in the Bronx.

The Long Island multifamily project will include a 12-story building with 199 high-end units at 50-01 2^nd St., easily accessible from Manhattan. As reported by Crain’s, the rental development will also feature a two-hour doorman, a yoga studio, a fitness center and other upscale amenities. The 12,000 square feet of ground floor retail space are being marketed by Winick Realty Group and could be occupied by childcare operators or restaurant chains.

While rent prices are still to be determined based on the median rents in the area, the developer bets on the project’s proximity to Manhattan and the waterfront and hopes to fetch $48 or more per square foot.

Click here for more market data on New York City.

Rendering courtesy if The Lightstone Group

NYC Housing Authority Initiatives Pave the Way for New Affordable Units

By Veronica Grecu, Associate Editor

In an attempt to renew and revitalize public housing developments in New York City, the New York City Housing Authority (NYCHA) Chairman John B. Rhea announced a series of initiatives meant to generate more revenue for the Housing Authority. The first project announced by Chairman Rhea calls for at least 1,000 permanently affordable housing units for low- and moderate-income families, without displacing any NYCHA residents.

The new market-rate and affordable housing facilities would be built on NYCHA-owned sites not currently occupied by residential structures and would also include ground floor retail and commercial spaces. A Request of Proposals will be released in early 2013, after the list of available sites is finalized. It is estimated that this new plan will create thousands of new construction and permanent jobs in New York City.

Another proposal unveiled by Chairman Rhea refers to using $500 million from a HUD capital fund bond to cover urgent repairs and improvements at approximately 350 NYCHA-owned residential buildings in all five boroughs over the next 12 to 36 months. The amount proposed by Chairman Rhea would become available in spring 2013.

The third initiative revealed on behalf of NYCHA by Chairman Rhea involves energy audits that would be performed on several city-owned buildings over the next 18 months. By carrying out these energy performance checks, NYCHA hopes to reinforce its role as an economic activity driver and serve as a model for other landlords in the years to come. According to an official statement, the savings would be used to finance upgrades for boilers, roofs and windows for existing NYCHA developments.

Currently serving over 600,000 New Yorkers (or 2,600 apartment buildings in 334 developments across the five boroughs) through public housing and Section 8 programs, NYCHA is the biggest public housing authority in the nation and the biggest landlord in New York City. As pointed out by Chairman Rhea during his speech, three quarters of the NYCHA-owned buildings are over 30 years old and need complex repairs.

Click here for more market data on New York City.

Chart courtesy of Marcus & Millichap

World’s Tallest Ferris Wheel to Be Built on Staten Island

By Veronica Grecu, Associate Editor

Local officials in New York City are aiming big for the ”Big Apple.” Mayor Michael Bloomberg announced last week plans for a new tourist attraction that would reinvent the northeastern side of Staten Island: the world’s tallest Ferris wheel, a 625-foot -tall structure destined to become one of the city’s landmark attractions.

Tentatively dubbed the “New York Wheel,” the historic project was proposed following the New York City Economic Development Corporation’s (NYCEDC) request for bids that would boost economic development in the Staten Island waterfront area. The giant structure will be developed by a joint venture between the New York Wheel LLC and local development company BFC Partners and is expected to have a hugely positive impact on the city overall by creating 1,200 construction jobs and 1,100 permanent jobs, while also generating around $500 million in private investment.

The $230 million investment will anchor a retail complex with 100 retail stores, a theater, a 200-room hotel, restaurants and various recreational areas. As the project will also seek Platinum LEED Certification, a large terminal building will feature various exhibitions about New York City history, alternative energy and environmental sustainability.

The wheel itself will have 36 capsules, each one able to carry up to 40 people—or 1,440 passengers per cycle—that will offer incomparable views of Lower and Midtown Manhattan, the Statue of Liberty and New York Harbor for the duration of each 38-minute revolution.

Construction at the site is scheduled to begin in early 2014, with a grand opening event tentatively set for early 2016. According to the New York Post, the projected wheel will be 84 feet taller than the Singapore Flyer, which was launched in 2008 and currently holds the record for the world’s tallest Ferris wheel.

The wheel will stand near the Richmond County Bank Ballpark and Staten Island Ferry Terminal and will stay open every day of the year except during severe weather conditions.

Click here for more market data on New York City.

Renderings of the New York Wheel courtesy of NYC Mayor’s Office

The Bronx, Manhattan Welcome Marriott-Branded Hotels; Frank Reilly Joins Avison Young NYC as Principal

By Veronica Grecu, Associate Editor

The first Marriott hotel operating under the Residence Inn brand is set to open in the Bronx in 2014 inside a 370,000-square-foot mixed-use complex known as Metro Center Atrium, part of the 42-acre, multi-building Hutchinson Metro Center. A Simone Development Companies venture, the Atrium will also include offices, medical spaces, restaurants and retail spaces. The seven-story extended-stay hotel will sport 125 upscale guest rooms.

Additionally, another Marriott-branded luxury hotel opened last week in Manhattan’s Central Park South at the former Jumeirah Essex House—a 40-story, 509-room facility that until recently was owned by DIG EH Hotel LLC of Dubai. As previously reported by Commercial Property Executive, the gross purchase price paid by a joint venture of Chicago-based Strategic Hotels & Resorts and an affiliate of KSL Capital Partners LLC was $362.3 million. Work is expected to begin shortly on an $18.3 million renovation.

In further commercial real estate news, Frank Reilly (pictured right) joined Avison Young’s New York City office as a principal, effective immediately. With more than 25 years of experience in the commercial real estate investment and finance market, Reilly will work closely with Principal David Eyzenberg to grow the company’s debt and equity services platform while focusing on construction loans, permanent loans, mezzanine debt, preferred equity and joint ventures.

Prior to joining Avison Young, Reilly served as a principal at NY Urban, a regional mortgage banking firm. Prior to that, he was a managing director of Newmark & Company’s capital group and a national director of the institutional services group for Marcus & Millichap.

Click here for more market data from New York City.

Rendering of Metro Center Atrium credits to Newman Design Group via PR News

Complex Redesign Project Announced for NYC’s Historic Pier 17

By Veronica Grecu, Associate Editor

Howard Hughes Corporation (HHC)—a company that owns, manages and develops commercial, residential and mixed-use real estate throughout the U.S.—and the New York City Economic Development Corporation (NYCEDC) have reached an agreement for a multi-year revitalization project of a 195,000-square-foot building at South Street Seaport, one of Manhattan’s most popular areas. South Street Seaport dates back to the 1600′s and was recently named the 26^th most-visited tourist attraction in the world by Travel & Leisure Magazine.

HHC’s proposed revamp plan calls for a complex transformation of Pier 17, according to a recent press release. The redesigned building will feature an open rooftop with space for concerts, music and other events, as well as a glass-enclosed retail center with stores, restaurants and neighborhood shops.

“The re-envisioned Seaport transforms the pier’s iconic waterfront setting into an energetic, highly engaging destination for shopping, dining and entertainment in Lower Manhattan,” said Howard Hughes Corporation CEO David R. Weinreb.

Designed by SHoP Architects, the re-imagined Pier 17 echoes the typical New York streetscape, featuring smaller individual structures with shops and restaurants that are delimited by open-air pedestrian thoroughfares. Two large floors, each measuring 60,000 square feet, will stretch out above the shops forming a roof, and giant glass doors will descend in bad weather to protect the structure’s lower levels, offering superb views of the Brooklyn Bridge.

According to Bloomberg, construction at the site is scheduled to start by mid-2013, and the project should be completed in 2015. Reportedly, HHC will get a rent credit of $1.5 million over a 30-month period. The developer will also pay $1.1 million to maintain the esplanade over the next five years.

Click here for more market data on New York City.

Rendering of the revamped Pier 17 courtesy of SHoP Architects

$22M Mixed-Use Development to Break Ground in Downtown Yonkers; Valuation Expert Steven Kurtz Joins Avison Young as Principal

By Veronica Grecu, Associate Editor

Development company Rising Development recently got the green light from the Yonkers Industrial Development Agency (YIDA) to go on with a $22 million project that would transform five properties in the downtown area into residential, retail and restaurant space. According to LoHud.com, YIDA has granted more than $500,000 in tax exemptions on mortgage and building materials used for the project, which aims to revitalize the city’s downtown and waterfront and attract further developers in the area.

It is estimated that the project will create nearly 135 permanent jobs. The five properties, located along Mill Street and Main Street and owned by Nicholas Sprayregen (pictured to the right) of Rising Development, will be the first phase of the planned Yonkers Rising construction development, which has been tentatively dubbed the Mill Street Courtyard project. As revealed in the official statement, over the next two years they will be transformed as follows:

-  27 Main Street will become a 7,000-square-foot structure to serve retail and restaurant uses

-  13 Main Street and the adjacent 2 Mill Street will become 25,000 square feet of live/work lofts, plus 6,000 square feet of retail space

-  36 and 38 Main Street will feature 15 live/work lofts on the upper floors and 4,000 square feet of ground floor retail space and a café

Apart from these, a vacant building located at 24 Warburton Ave. will be replaced by a pedestrian passage that will link the Larkin Plaza park with the Mill Street courtyard.

In commercial real estate news, Avison Young announced last week that valuation expert Steven J. Kurtz (pictured) has joined the company’s New York City office as a principal, effective immediately. Kurtz, 45, is an industry veteran with 20 years of experience; he will focus on Avison Young’s valuation advisory services in the areas of valuation for financial reporting, litigation support, periodic valuations, portfolio analysis, cost-segregation studies, business combinations and standard appraisals.

Prior to joining Avison Young, Kurtz was the founder and Managing Director of Kurtz Realty Consulting in New Jersey, where he dealt with business development, client service and deliverables, while focusing on valuation for financial reporting. His notable achievements include the appraisal of Union Station in Washington, D.C., Faneuil Hall in Boston and General Motors’ legacy portfolio, which consists of 32 plants totaling more than 40 million square feet across the country.

Click here for more market data on New York City.

Refurbished Double Tree by Hilton Hotels Opens in New York City

By Veronica Grecu, Associate Editor

Double Tree by Hilton recently inaugurated its newly revamped full-service hotel in New York City—an upscale property located on the corner of Lexington Avenue and 51^st Street in the fashionable East Side. The iconic building, which was designed by architect Morris Lapidus as the Summit Hotel in 1960—in an unusual “Z” shape to increase natural daylight in each room, now features 12,000 square feet of renovated meeting space and 746 guest rooms.

The hotel’s transformation features Lapidus-inspired interior designs incorporated in geometric patterns and forms that celebrate the architect’s legacy throughout the facility. Owned by RLJ Lodging Trust and operated by Highgate Hotels LP under a franchise license agreement with one of Hilton Worldwide’s subsidiaries, the Double Tree by Hilton Metropolitan New York City aims to preserve the unique history of the hospitality chain’s properties while providing an amenity-rich hotel experience for visitors and residents alike.

The hotel’s guest rooms include desks with ergonomic chairs, 37-inch HD LCD TV sets, MP3-compatible alarm clocks, plush bedding, combed cotton linens and luxurious bath accessories.

Upgrades at the Double Tree by Hilton Metropolitan New York City also include wall coverings for meeting rooms, as well as new carpeting, window treatments and Lapidus-inspired decorative light fixtures. The hotel also features a conference space suitable for up to 500 people, a ballroom located on the mezzanine level, as well as two boardrooms and two meeting rooms on the penthouse level.  All meeting spaces are equipped with laptop connections and fax machines.

For more market data from New York, click here.

Photo courtesy of www.metropolitanhotelnyc.com

Lighting Retrofit Completed at Ernst & Young NYC Headquarters; Avison Young Closes on Three Transactions

By Veronica Grecu, Associate Editor

A team of contractors made up of JAS Consulting, Philips Lightolier Energy Service Group and One Lux Studio recently finished work on a massive lighting retrofit project at Ernst & Young’s 650,000-square-foot headquarters in Times Square.

Considered to be one of the largest lighting retrofit initiatives in New York City, the project brings the company one step closer to having most of its employees work in LEED and/or Energy Star certified spaces by the end of 2013.

It is estimated that the newly installed energy-efficient lighting systems will reduce the building’s annual energy use by 54 percent, or from 6.2 million kilowatt-hours annually to nearly 3 million. Also, the projected decrease in energy consumption will reduce the company’s CO2 emissions by nearly 2 million pounds.

“This project is the result of the collaboration between several infrastructure groups within Ernst & Young LLP, particularly the Facilities and Real Estate teams, and the Climate Change and Sustainability Services professionals who advise clients on sustainability practices,” said Leisha John, Ernst & Young Americas Director of Environmental Sustainability.

In other news, Canada-based commercial real estate services firm Avison Young announced last week the completion of three loan sale transactions by the company’s New York City-based team lead by Avison Young Principal Justin Piasecki and Vice President Aaron Iskowitz in the New York City office.

The three loan sale transactions are as follows:

-          A 9-asset portfolio comprising of one real estate-owned site, one non-performing loan and seven performing loans located throughout New England on behalf of a Boston-based real estate investment firm. The collateral consisted of a mix of multifamily, office and retail properties.

-          A first mortgage collateralized by a multi-tenant retail property in Rancho Mirage, Calif. on behalf of a Midwest-based commercial lender. The 76,168-square-foot property was 91 percent occupied at the time of transfer.

-          A first mortgage collateralized by a multifamily property in San Jose, Calif. on behalf of First National Bank of America in East Lansing, Mich.

Click here for more market data on New York City.

Image credits to Spencer Platt/Getty Images North America

New Affordable Rental Units Available in Bedford-Stuyvesant

By Veronica Grecu, Associate Editor

A new affordable housing complex was inaugurated last week in Brooklyn’s Bedford-Stuyvesant neighborhood during an official ceremony attended by representatives of the New York City Department of Housing Preservation and Development (HPD), development partners and residents.

Created as part of Mayor Michael Bloomberg’s New Housing Marketplace Plan, which aims to spend nearly $8.5 billion to finance 165,000 units of affordable housing for 500,000 low-income New Yorkers by the end of fiscal year 2014, the development replaced seven vacant lots owned by the city.

The $15.3 million Madison Putnam, located at 934 & 926 Madison St. and 1007, 1013, 1023, 1052 & 1054 Putnam Ave., consists of 13 one-bedroom, 27 two-bedroom and 7 three-bedroom rental units designated affordable for families below 60 percent of the Area Median Income (or $49,800 for a family of four). 10 more units will be available to families below 40 percent Area Median Income (or $32,040 for a family of four), according to an official statement released by HPD.

Designed by RKT&B Architects, the project utilizes an efficient and cost-effective infill housing prototype that fits R-6 zoning requirements, which is found especially in residential areas such as Brooklyn, Queens and the Bronx. Each of the seven separate residential buildings is four stories high with access to a rear garden for residents.

Asking rents in New York City have risen 2.9 percent to $1,595 per month in 2012, while effective rents have reached peak levels of $1,529 per month—marking a growth rate of 3.5 percent—according to a recent market report by Marcus & Millichap. Rents in Brooklyn are expected to increase considerably, as young professionals looking for more affordable living space will target this neighborhood.

For more market data on New York City, click here.

Image credits to NYC Department of Housing Preservation & Development (HPD) Facebook Page; chart courtesy of Marcus & Millichap.

Avison Young Anticipates a Rebound for Manhattan Real Estate in Late 2012

By Veronica Grecu, Associate Editor

As the second quarter of 2012 drew to a close, the Manhattan office market showed mixed indicators. Despite some increase in new leasing activity as compared to the record lows seen during the first quarter, vacancy rates continued to rise, which led to a high level of unoccupied inventory.

The overall office vacancy rate at the end of the second quarter was 10.8 percent, this compared to 10.4 percent at the close of the first quarter and 11.3 percent at mid-year 2011.

Class A downtown vacancy climbed 2 percent from the first quarter of 2012, but this increase was mostly due to the addition of more than 500,000 square feet of space at Four World Trade Center. Downtown Manhattan vacancy rates are expected to continue to rise in late 2013 when more office space at the World Financial Center comes to market.

The leasing activity indicators are expected to reach even lower levels during the summer months, which are known to be rather dormant for the real estate industry. However, once all uncertainty arising from the presidential election this fall passes and the European debt crisis gets on track to stabilization, the market could see a significant rebound in new leases, said James Delmonte, Avison Young principal and vice president of research in New York City.

Avison Young experts anticipate that a recovery for the Manhattan real estate market is likely to begin in mid-to-late 2013, when steadier job growth is expected. With new construction being completed over the next couple of years, mid-to-late 2014 could bring an increase in rental rates and longer-term rents. Currently, 30 percent of tenants in the Manhattan office market have lease expirations between 2014 and 2017.

Canada-based Avison Young is a privately-owned commercial real estate services and brokerage company. Earlier this year, Avison Young opened its first office in New York City and started putting together a team of top industry professionals to continue the company’s aggressive expansion in Manhattan. Avison Young’s latest additions are real estate research and marketing veterans James Delmonte and Elliot Baum.

James Delmonte will oversee all aspects of Avison Young’s market research in the Tri-State area. Prior to joining Avison Young, James Delmonte acted as vice president of research with Jones Lang LaSalle in New York.

With more than 20 years of creative marketing experience, Elliot Baum will be responsible for directing Avison Young’s marketing, public relations and branding efforts throughout the Tri-State region. He was previously senior managing director of the Consulting Group and head of marketing for the Tri-State region at Colliers International.

For more market data from New York, click here.

JV Breaks Ground on Luxury Development in Jersey City

By Veronica Grecu, Associate Editor

Development partners Ironstate Development Company and Kushner Real Estate Group have broken ground on 18 Park—a 550,000-square-foot, mixed-use project that will replace an undeveloped site adjacent to the Liberty Harbor North Light Rail Station near PATH and ferry service to Manhattan, all within the Liberty Harbor Redevelopment District in Jersey City.

Jointly designed by HWKN Architects and Minno & Wasko Architects to meet LEED certification and Feng Shui standards, the 11-story building will feature 422 luxury rental units, 10,500 square feet of ground floor retail space and 230 covered parking spaces. According to The Real Deal, the rental units—comprising of studio-, one- and two-bedroom residences with views of the Hudson River, Statue of Liberty, Ellis Island and downtown Manhattan—will be marketed around $36 per square foot.

Future residents of 18 Park will benefit from a variety of upscale amenities such as an outdoor swimming pool, a planted garden on the roof, private storage space, a full-service fitness center, recreation space and non-stop concierge service.

The project also includes a new ground-level headquarters for the non-profit Boys & Girls Clubs of Hudson County, which will relocate to the new 34,000-square-foot home in the fall of 2014, when construction is scheduled to be completed.

Plans for the independently accessed and operated facility include a dance studio, classroom space, rooms for arts and music programs and a new gymnasium with a floor-to-ceiling glass wall. As reported by NJ.com, the joint-venture behind 18 Park has entered an agreement with the Boys & Girls Clubs of Hudson County board to purchase the non-profit’s existing headquarters building at 1 Canal St. and transform it into a 660-unit residential building.

Follow this link for an in-depth report on New York City multifamily.

Project renderings courtesy of HWKN Architects website

Toll Brothers and Starwood Capital Team Up to Build Luxury Hotel and Condo Complex at Brooklyn Bridge Park

By Veronica Grecu, Associate Editor

The Brooklyn Bridge Park (BBP) Board of Directors has designated a joint venture between Toll Brothers Inc. and global private investment firm Starwood Capital Group to develop a 550,000-square-foot luxury hotel and condominium complex next to Pier 1 in Brooklyn Bridge Park.

Official sources say that the joint venture will enter into two 97-year ground leases at the site and, over the course of the lease term, the development is estimated to generate nearly $120 million to support the 85-acre park’s maintenance, landscaping and operation.

Projected to achieve LEED Silver Certification, the ten-story hotel and five-story residential building are designed by New York City-based Rogers Marvel Architects and will combine environmentally sustainable architecture and interior design with impeccable service and luxurious comfort to match the beautiful views of the adjacent harbor and park.

The 200-room hotel will be marketed under Starwood’s luxury, eco-friendly 1 Hotel brand and will include 16,000 square feet of indoor and outdoor restaurant space, 16,000 square feet of banquet and meeting space, a 6,000-square-foot spa and fitness center, 2,000 square feet of retail space and 300 parking spaces.

While the selling price per unit has yet to be disclosed, future residents of the 159-unit condo building will have preferred access to 1 Hotel’s spa and services. With an average area of over 12,000 square feet, all condo units will offer spectacular views of lower Manhattan and the highest quality finishes, as well as a children’s playroom and bike storage.

Toll Brothers and Starwood Capital hope to break ground on the project by summer 2013 and open the hotel and residential building in the fall of 2015.

Click here for more reports on New York City.

Aerial rendering courtesy of Toll Brothers City Living, Starwood Capital Group

Two Media Giants Scouting for Office Space in NYC

By Veronica Grecu, Associate Editor

Remember when Silicon Valley was the designated location for tech companies? Well, things are about to change as media giants’ quest for new office space in Downtown Manhattan reaches new heights.

Some undisclosed sources quoted by Reuters revealed that Menlo Park, California-based Facebook Inc. (FB.O) and Redmond, Wash.-based Microsoft Corp. (MSFT.O) are looking to expand their footprint in New York City, as well as consolidate their presence on the West coast.

Facebook, the world’s largest and fastest-growing social networking company, opened its first engineering center in New York City in early 2012. The new location added to the company’s existing 40,000-square-foot local office at 335 Madison Ave.,  where it signed a 15-year lease agreement in December 2010.

According to Reuters’ sources, Facebook is now looking for a bigger office of 100,000 to 150,000 square feet. One possible location could be the former New York Times Building at 229 West 43^rd St.

The same building was taken into account by Microsoft, which is looking for a new office space of around 200,000 square feet. The company’s current New York office at 1290 Avenue of the Americas is only 174,000 square feet, and the lease agreement will expire in 2014.

Serkan Piantino, the leader of Facebook’s New York engineering office, was quoted by Wired as saying that the reason why Silicon Valley is no longer seen as a Mecca for techies is that the Big Apple still holds the reins of fashion, media and finance—not to mention the large pool of software engineers who would not have to relocate outside their beloved city.

Image courtesy of Facebook Engineering NYC Community Pages

$70 Million Upgrade for Loews Regency Hotel New York; Industry Leader Joins Avison Young

By Veronica Grecu, Associate Editor

Loews Hotels, a luxury hospitality company that owns and operates nearly 20 hotels and resorts in the U.S. and Canada, has embarked on a $70 million renovation project at the Loews Regency Hotel in New York, located at 540 Park Ave. As reported by Bloomberg, the Regency renovation is part of the company’s major plan to expand its hotel division in New York City.

Renovation at the 354-room hotel will be done in phases to avoid any service disruptions; an estimated completion date was set for February 2014, just in time for the National Football League’s Super Bowl, which will be held at MetLife Stadium in East Rutherford. According to the same source, the Tisch family—the founders of Loews Corp.—own 50 percent of the New York Giants, whose shared home happens to be MetLife Stadium.

In other news, Canada-based commercial real estate services company Avison Young announced the hiring of industry leader David Eyzenberg as a principal in the company’s recently opened New York City office. Effective immediately, David Eyzenberg will focus on entity and asset recapitalization, financing debt and property acquisitions. He will also serve as advisor for Canadian and domestic institutions regarding structured ground lease transactions and other appropriate U.S. investment opportunities.

Prior to joining Avison Young, Davin Eyzenberg (pictured) was managing director and head of the commercial real estate division for New York-based financial advisory firm NewOak Capital. His notable transactions at the company include obtaining $14 million of joint-venture equity for the purchase of a New York development site by a private owner, arranging a $28 million pre-development bridge loan for a New York-based developer and structuring a $17 million blanket mortgage on seven multi-state assets for a private family.

Loews Regency Hotel New York main entrance courtesy of Loews Hotels website