Roosevelt Island Operating Corp (RIOC) Names Hudson Related as Main Street Master Leaseholder During April Board of Directors Meeting

Hudson Related just named as Roosevelt island Main Street Retail Master Leaseholder at RIOC Board of Directors Meeting.

More details to come.

UPDATE - 11:10 PM - The Wall Street Journal reports that RIOC:

... intends to award a 30-year lease on the state's approximately 100,000 square feet of retail to the team of Hudson Cos. and Related Cos., which would share income with the state agency....

and:

... Hudson-Related would guarantee the state agency the existing revenue it collects from the property—about $900,000—and the developers would split additional income with the state, people involved in the deal said. The team would also put new money in to modernize the retail.

"We're gonna do shock and awe," said David Kramer, principal at Hudson. "The retail space hasn't gotten the time and the attention and investment it needs."...

UPDATE 4/7 8:55 PM -Here's the Press Release from RIOC"

The Roosevelt Island Operating Corporation (RIOC) announced today that it has reached an agreement with Hudson Companies Inc. and Related Companies (Hudson/Related) on a joint venture for the master lease of the retail corridor on Roosevelt Island.  RIOC currently controls 34 retail stores on the island containing 100,000 square feet.

“This is a very exciting day for Roosevelt Island,” said RIOC President Leslie Torres. “We are looking forward to working with Hudson/Related to improve the vibrancy and appearance of the Main Street retail corridor and help increase the services and products offered to our community. Along with the construction of the Louis Kahn-designed FDR Memorial on the southern tip of the island, the interest shown in a new science center, and our new Tram, the retail transformation is another example of the exciting improvement happening on Roosevelt Island.”

Roosevelt Island is a community of more than 12,000 residents and workers. Planned development will increase the housing stock by 5,500 units.

“For several decades Roosevelt Island residents suffered without retail options. That is why my colleagues and I worked tirelessly to make this master lease possible. A vibrant Main Street will offer residents competitive prices, better stores, services, and job opportunities. I am proud to witness this turning point for our community and economy,” said Jonathan Kalkin, member of the RIOC Board of Directors.

Hudson/Related has been active on Roosevelt Island since 1997 when it was conditionally designated to develop 2,000 units in a new neighborhood, Riverwalk, surrounding the Roosevelt Island subway station. “Since developing 6 buildings in Riverwalk and 7 retail stores, we have become huge fans of the island,” said Hudson principal David Kramer. “We are very proud of the retail we brought to Riverwalk, a mix of national tenants such as Starbucks and Duane Reade and local stores such as Fuji East, Nonno’s Focacceria and the Riverwalk Bar & Grill. More importantly, we are pleased to have brought retail to the island that truly serves the needs of the residents and we will continue that tradition as we revitalize the Main Street retail corridor. ”

The Hudson/Related developers will start by sitting down with community residents, store owners and other Main Street stakeholders to solicit input about the future changes to the corridor.

“We want to have a dramatic impact on how retail is experienced on Main Street,” said Related Vice President Kimberly Sherman Stamler. “We are going to be looking at upgrading the storefronts, signage, street furniture and displays.  And we plan to hold all of our tenants to a very high standard with their products and displays.”

Hudson/Related is expected to start work on the retail corridor by July 1.  The agreement is subject to a formal approval by the RIOC Board of Directors who will vote to approve the deal at their May Board meeting.

“For far too long, Roosevelt Islanders have been deprived of the vibrancy and convenience that Main Street should offer,” said Assembly Member Micah Kellner. “By implementing a master lease for Main Street’s store fronts, Islanders can finally get the kind of retail services they want and deserve.”

RIOC's press spokesperson confirmed the financial details of the transaction reported in the Wall Street Journal above.

RIOC Director Jonathan Kalkin, chair of RIOC's Real Estate Committee, initiated the Main Street Retail Master Leaseholder proposal way back in 2007 when he was a Roosevelt Island Residents Association (RIRA) member.  Mr. Kalkin should be congratulated for his vision, hard work, and perseverance in shepherding the Main Street Master Leaseholder concept through to completion despite many obstacles including the fierce opposition of the previous RIOC administration.

Thank you Mr. Kalkin for your hard work.

Now, hopefully, please, Roosevelt Island's Main Street retail corridor may sometime soon no longer look like East Berlin before the fall of the Wall or a replica of a dreary, depressing street in the former Soviet Union. It's up to you David Kramer and Hudson Related. Don't let us down.

More on the Master Leaseholder process here.