NYC: Pace University Dorm Tops Out
In fall 2015, 770 lucky Pace University students will move into a brand-new residence hall at 33 Beekman next door to one of Manhattan’s luxury apartment developments, New York by Gehry (developed by Forest City Ratner), at the foot of the Brooklyn Bridge. (Just don't do a "love lock" with your residence hall keys.) Developer Miki Naftali (whom we snapped at Bisnow’s NYC Multifamily Summit in 4 World Trade Center, a few blocks from his project) tells us Naftali Group’s project topped out two weeks ago and will offer amazing views for students in its 34 floors.
The company secured the site two years ago after Pace approached Naftali and JV partner SL Green. At the time, Miki wasn’t comfortable building condos Downtown (though it’s a hot residential submarket now). Still, the deal has advantages for the developer, he tells us. Pace is leasing the property for 30 years triple-net; a steady, long-term income stream like that isn’t something a resi developer comes by every day.
While many universities handle their own development, a lease arrangement moves the cost off its balance sheet, Miki says. He tells us his daughters are in college, and he also likes the idea of sprucing up drab dorm design. (A beanbag chair and a poster of John Belushi in Animal House can only go so far in making a dorm room look good.) Residential and hotel architect Gene Kaufman designed the building, and Andres Escobar handled the interior. The view is of 1 World Trade Center, a new icon, and the Woolworth Building, a classic icon (think Beyonce and Barbara Streisand). Alchemy Properties is reportedly asking $110M for the penthouse of the Woolworth Building, the top half of which is being converted to condos.