June 18, 2014 By Christian Murray
Tishman Speyer and a Toronto-based real estate investment company announced Tuesday that they are developing as many as 1,600 residential units on a site next to 2 Gotham Center, which is located on Queens Plaza South.
The development will be built in three phases, with the initial phase involving the construction of a 42-story tower, which will include 700 rental apartments. Construction on the first phase is expected to begin in 2015 with occupancy expected to commence in 2017.
By the time the development is complete, Tishman and H&R Real Estate Investment Trust aim to build 3 towers, 1,600 residental units and about 30,000 square feet of ground floor retail.
Tishman Speyer Co-CEOs Jerry Speyer and Rob Speyer said in a statement: “Tishman Speyer has long been committed to Long Island City and its ongoing transformation as a dynamic mixed-use district.”
Tishman was the developer of 2 Gotham Center, a 21-story building that was once the home to a municipal parking lot that is now leased by the NYC Department of Health & Mental Hygiene.
Real estate experts claim that the Queensboro Plaza/Court Square area can absorb the influx of new units. “The absorption rate is fast right now,” said Eric Benaim, the founder of Modern Spaces, who spoke on real estate panel, held by the LIC Partnership yesterday.
“I welcome this development,” said fellow panelist Justin Elghanayan, president of Rockrose Development Corp, which owns the Linc in Court Square and is developing several other sites nearby. “While in the short term competition can depress rents slightly, over time it brings in more retailers and is positive for the neighborhood.”