NEW YORK CITY—Real estate development firm Vorea Group has secured a 99-year, triple-net ground lease for 23-20 Jackson Ave. in Long Island City. The 10,000-square-foot property includes 200 feet of frontage along Jackson Avenue and Pearson Street, and 50,000 buildable square feet for mixed-use development.
While details of the lease remain confidential, it is estimated that the overall deal totaled approximately $350 million. The agreement was signed for $450 million, which Vorea is expected to pay over the life of the lease.
Evan Daniel, Edward DiTomasso and Ashley Grebow of Modern Spaces exclusively marketed the property and represented the owner, 23-20 Jackson Realty Associates. The Modern Spaces team collaborated with Marc Lavaia, a partner at Warshaw Burnstein, as counsel to negotiate the net lease. Currently zoned for mixed-use development, the land is part of a New York City study for potential re-zoning.
“Many owners shy away from a ground lease due to a lack of understanding of the many intricacies involved,” asserts Daniel, EVP at Modern Spaces. “Despite its complexities, a 99-year ground lease offers long-term cash flow and financial security for the new owner while supplying a sellable or financeable asset.”
“Triple net ground leases of this nature can be difficult to negotiate. Experienced counsel, motivated parties and capable brokers ultimately made the difference in closing this historic net lease in Long Island City,” adds Lavaia.
Long Island City has experienced an influx of new residential construction during the last five years and has yet to experience the same scale of new Class-A commercial property development, with the exception of Tishman Speyer's Gotham Center, Modern Spaces notes.
“The neighborhood has faced an increase in demand for high quality commercial properties in the past 18 to 24 months, leading to a dramatic rise in office and retail rents,” says Grebow. “We hope to see more office tenants like Bloomingdales and WeWork recognize the benefits of being in Long Island City. In order to achieve this, New York City needs to promote commercial development and educate businesses and tenants about the available incentive programs for employment, relocation and job growth.”
Located in the Court Square area of Long Island City, 23-20 Jackson Avenue is close to Court Square Park. It also is walking distance from the Citicorp Tower, granting direct access to the E, M, 7, and G trains at the Court Square subway stop.
While details of the lease remain confidential, it is estimated that the overall deal totaled approximately $350 million. The agreement was signed for $450 million, which Vorea is expected to pay over the life of the lease.
Evan Daniel, Edward DiTomasso and Ashley Grebow of Modern Spaces exclusively marketed the property and represented the owner, 23-20 Jackson Realty Associates. The Modern Spaces team collaborated with Marc Lavaia, a partner at Warshaw Burnstein, as counsel to negotiate the net lease. Currently zoned for mixed-use development, the land is part of a
“Many owners shy away from a ground lease due to a lack of understanding of the many intricacies involved,” asserts Daniel, EVP at Modern Spaces. “Despite its complexities, a 99-year ground lease offers long-term cash flow and financial security for the new owner while supplying a sellable or financeable asset.”
“Triple net ground leases of this nature can be difficult to negotiate. Experienced counsel, motivated parties and capable brokers ultimately made the difference in closing this historic net lease in Long Island City,” adds Lavaia.
Long Island City has experienced an influx of new residential construction during the last five years and has yet to experience the same scale of new Class-A commercial property development, with the exception of Tishman Speyer's Gotham Center, Modern Spaces notes.
“The neighborhood has faced an increase in demand for high quality commercial properties in the past 18 to 24 months, leading to a dramatic rise in office and retail rents,” says Grebow. “We hope to see more office tenants like Bloomingdales and WeWork recognize the benefits of being in Long Island City. In order to achieve this,
Located in the Court Square area of Long Island City, 23-20 Jackson Avenue is close to Court Square Park. It also is walking distance from the
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