Thursday, June 6, 2019

Roosevelt Island Real Estate Development Update From Hudson Related - Riverwalk Building 8 Construction Status & 341 Unit Affordable Housing Marketing Plan - Also, 28 Story Market Rental Riverwalk 9 Has New Recreational/Passive Open Space Commons Area And New RIOC 7 Thousand Square Foot HQ Offices

The web site of Roosevelt Island Southtown real estate developer Hudson Companies reports:

Riverwalk 8 is the eighth building completed by Hudson and the Related Companies in the Riverwalk neighborhood. The building’s 341 units are available exclusively to low-income, middle, and moderate income households ranging from 40 to 165% of AMI. The building contains a fitness center, yoga studio, children’s playroom, bike storage, party lounge, game room, library, and a 24-hour attended lobby.
Riverwalk 8 is currently under construction.

The Roosevelt Island Operating Corp (RIOC) Real Estate Development Advisory Committee met May 29 to receive a status update from Hudson Related Southtown Riverwalk Buildings 8 & 9 Developer David Kramer and colleague Jamar Adams.

According to Mr. Kramer, construction of the 21 story Riverwalk 8 is on schedule with expected completion in 4th quarter of 2020. Currently, 1 floor is being done every 3 days and topping out is planned for July.

As previously disclosed, Riverwalk Building 8 will have a 50% community preference for the affordable housing lottery. The preference is for residents residing in Community Board 8 which includes Roosevelt Island and the Upper East Side. Efforts to have the community preference limited to Roosevelt Island residents only has so far been unsuccessful, although both Mr. Kramer and RIOC have said they would love to do it if allowed by their financing agreements.

Building 8 will also include mobility impairment and municipal employees lottery preferences.

Hudson Related will begin Building 8 marketing efforts starting this summer with a web site that will show unit types, area medium income ranges and projected rents.

In late spring/summer 2020 Hudson Related will begin local media advertising, distribute flyers and conduct informational seminars on how to apply for the affordable housing units using NYC Housing Connects. 4 months prior to the expected start of unit leasing, the Housing Connects lottery will commence. Leasing is expected to begin in December 2020/January 2021.

Building 8 will offer same services amenities as other Riverwalk building except there will be no outdoor rooftop deck.

Following the Riverwalk 8 discussion, Mr Kramer reported that the 28 story Riverwalk Building 9 will be similar to Riverwalk 7, a market rate rental.  Mr Kramer noted that Hudson Related intends to sell the base of the building to an East Side medical institution for staff housing and retain the balance of floors for rental units with 7 thousand sq ft for a new RIOC office space HQ (4000 on ground floor, 3000 in lower level).

Mr Kramer informed the RIOC Real Estate Committee that previous Hudson Related Roosevelt Island Riverwalk buildings sold their base as a condo but cannot do that any longer on a new Roosevelt Island project because NY State Law restricts condo use if there is less than 50 years remaining on the ground lease. Roosevelt Island ground lease expires in 2069. Mr Kramer is seeking some other type of legal structure, co-op or Master Lease for instance, to be able to sell off the base of Riverwalk 9.

Hudson Related hopes to close the deal for Riverwalk 9 by the end of 2019 and begin construction soon therafter which will mean a 1 year overlap of Rivrwalk Building 8 and 9 construction.

Mr Kramer added that the Commons Area between Riverwalk Buildings 8&9 will be:
... Chock full of recreational and passive open space...
with hammocks, bocce ball courts, small dog play area, seating and ping pong which will be maintained and administered by RIOC.

According to this excerpt from December 26, 2018 Open Area Agreement between RIOC and Hudson Related:
.... improvements to an outdoor area located in between the sites for Buildings 8 and 9, as shown as the cross-hatched area on the diagram attached hereto as Exhibit A (such area being referred to as the "Outdoor Area").
The Outdoor Area will be constructed by the Building 9 Tenant at its own cost and expense, in accordance with plans approved by RIOC, with a budget for such work to be reasonably approved by both RIOC and Developer. The Outdoor Area, to be referred to as "Commons East", will be improved with a mixture of active and passive uses, including lawns, landscaped areas, climbing structures, ping-pong tables, hammock areas, porch swings, lounge decks, picnic areas, paved pathways, bench seating, and shrub and tree plantings, with adequate outdoor lighting and trash receptacles. Landscaped areas will be graded, and grassy areas will be seeded. The Outdoor Area will have a drainage system capable of draining all storm water runoff from the site. Construction of the Outdoor Area will be performed in accordance with the terms of the Building 9 Lease.

The Outdoor Area will be open to the public, and will not be restricted to the use of residents of Buildings 8 and 9 only. RIOC will not provide any utility service to the Outdoor Area and makes no representation as to availability of utility service to the Outdoor Area. The Building 9 Tenant will, at its expense, arrange to provide electric service to the Outdoor Area directly with the public utilities providing such service. RIOC will deliver the Outdoor Area to Tenant vacant and in its then "as is" condition, and will not be obligated to make any representations or warranties of any kind with respect to the condition of the Outdoor Area, including, without limitation, any subterranean conditions.
Here's video of the full RIOC Real Estate Committee discussion with Hudson Related about Riverwalk buildings 8&9.