JP Morgan Fleming Invests $105M in City Center

JP Morgan Fleming Asset Management of New York City has signed a contract with LC White Plains Residential LLC to invest $105 million as a partner in City Center's 35-story luxury rental apartment north tower known as One City Place. No terms of the deal were announced, however, Cappelli stresses that the JP Morgan Fleming investment was solely for the One City Place tower building. Cappelli Enterprises remains the sole owner of the retail, entertainment and condominium components of the $325 million City Center development.

"The level of interest in White Plains by major investment funds is extremely strong," Cappelli says. "Investors see White Plains as offering a dynamic and positive environment."

The investment deal does not impact other agreements already in place at One City Place. Trammel Crow Residential Services has been retained as the leasing and management agency at the property. Since its "soft" opening two weeks ago, One City Place has secured 13 leases on units ranging from $1,430 per month to $4,590 per month. Residents are expected to begin moving into apartments on the first 14 floors of the tower in April, with the entire tower slated for completion by the end of May, Cappelli officials state.

Nearby One City Place, the south residential tower, known as City Place South, is currently under construction. The building will include 211 luxury condominium apartments. A separate building containing 29 luxury Soho-style loft condominiums is also under construction. Those buildings are scheduled to open by June 2005.

Cappelli adds he hopes to begin construction soon on his second major downtown White Plains project, Renaissance Square, a $350 million project that includes a tower with a luxury hotel and condominium apartments and an office tower.

"The partnership with a major investor in One City Place encourages us to move forward quickly with the new project," he states. "With site plan approval expected in May, we intend to immediately begin the demolition of the old storefronts on Main Street. That will be followed by the excavation work for the foundation of the new complex."

The developer adds that the deal with JP Morgan may be one of a number involving major institutional investors in projects in the City of White Plains. "The potential for another $300 million in investment partnerships is very real, and more will likely follow," he predicts.