Posted: May 17, 2012, 12:43 PM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
Posts: 24,984
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http://www.nypost.com/p/news/busines...nt=Residential
West assured
Midtown sees a rental boom
By KATHERINE DYKSTRA
May 17, 2012
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Brookfield Office Properties is known for developing office space. This makes the recent announcement that Brookfield is considering devoting a portion of an upcoming, four-tower project to residences something of a surprise. The huge site will span from 31st to 33rd streets and from Ninth to Dyer avenues.
“Everyone was thinking that it was going to be office space, and now they’re thinking about 900 units of residential,” says Jeff Katz, CEO of Sherwood Equities, which develops both commercial and residential properties. Katz points to the Brookfield announcement as a bellwether, while implying that, to anyone who has followed the trajectory of the surrounding neighborhood — specifically, the blocks on the far west side sandwiched between Chelsea and Hell’s Kitchen — it’s really no surprise at all. This area has historically been a no-man’s land quilted with parking lots and laden with exhaust fumes, but within the past five or so years, it’s become known more for rental apartments than rental cars.
“[Our land is] across from what will be Moynihan Station,” says Phil Wharton, senior vice president of development at Brookfield. “So, one of the rationales for residential development is that you’re across from the biggest transport hub in the US, for convenience to the subway, Amtrak, NJ Transit, all of that. There’s also the proximity to Chelsea. It’s a block north of the High Line.”
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It wouldn't surprise me if the residential component became the tallest of the towers here. I know that residential is hot in Manhattan right now, but I still believe that this site, so close to Penn Station, needs to attract more offices.
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http://www.globest.com/news/12_353/n...t/-321597.html
Up Close With Phil Wharton, Brookfield’s New Development Guru
By Jacqueline Hlavenka
May 17, 2012
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Wharton, a 30-year veteran of commercial real estate development, talked with GlobeSt.com about the company's latest progress at the 5.4-million-square-foot Manhattan West site, and other core markets across the globe.
GlobeSt.com: Brookfield is known for class A office buildings. But what’s in the pipeline for the company in terms of new multifamily development?
Wharton: On the Far West Side, we are looking at the alternative that would include an apartment tower to go along with the office buildings. We think there are parts of the site that lend themselves better to multifamily. They are a little more secluded and we also think the proximity to the High Line is a nice alternative. We also like the idea of having the mixed-use element to create a more 24/7 environment. We are also going to have a pretty big retail component. We think a mix of uses would be beneficial to the project as a whole, so we are definitely looking at it.
GlobeSt.com: What is the status on construction activity at Manhattan West? Has the plan changed in any other way?
Wharton: In terms of the reduction of office space, we have flexibility in the zoning. We can substitute some residential for commercial. With 5.4 million square feet, we think there’s room for reducing the office and replacing it with the residential. In terms of the timing, we haven’t changed our plans. We are still intending to go forward with the platform over the track quite soon. We are going to go forward with the first office building as soon as we secure an anchor tenant. One of the nice things about the residential is that we can build it simultaneously with the office, so we could do the two of those at the same time. The residential demand we know is there. It becomes more of a north Chelsea location for the residential, and certainly for rental apartments, demand is very strong. We can seeing doing the two together.
GlobeSt.com: Any word on a potential anchor tenant?
Wharton: There are a couple of large tenant requirements that are in the marketplace, and Manhattan has a deep pool of office users. It’s 400 million square feet. As big as it sounds to have 5.4 million square feet, to have some pre-leased tenants is not that big of a stretch. The other thing that we look at is the stock of the New York City office market pre-dates 1980 in terms of the vintage of the building. There’s certainly demand for modern office space.
GlobeSt.com: Do you think new office construction is viable in NYC despite the sluggish leasing market?
Wharton: New construction offers value, and we are very positive on the outlook for office demand. We think New York City will continue to be a vibrant environment and a place where not only financial services, but media and technology companies are growing. There’s always a vitality to New York City, even when other office markets in other parts of the country may not be as strong. New York City seems to have its own resilience.
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Last edited by NYguy; May 17, 2012 at 1:10 PM.
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