International property development and investment group, Lendlease (ASX:LLC) is partnering up with one of Australia’s largest superannuation funds, Aware Super (formerly First State Super), to acquire a 90 percent interest in a 2.6-acre site at 1 Java Street in Brooklyn, New York.
The development is valued at A$1 billion and will transform a full city block into around 800 apartments for rent. Approximately 30 per cent of these apartments will be designated as affordable housing under the Affordable New York Housing Program.
Located on the East River, the project will also include a reimagined public waterfront esplanade with improved connection to the India Street pier and NYC Water Ferry.
Lendlease and Aware Super are aiming to implement a range of sustainability initiatives at the site including achieving at least LEED Gold certification for the development
Today’s announcement extends the 2018 partnership Lendlease formed with Aware Super, then known as First State Super, which established the US$2 billion Lendlease Americas Residential Partnership (LARP). The LARP was created to develop and hold residential for rent assets in targeted US gateway cities. With this latest investment, the LARP portfolio now spans projects in Chicago, Boston and New York. Lendlease is the partnership’s development, construction and investment manager.
The 1 Java St acquisition is based on a 25 per cent interest for Lendlease and a 75 per cent interest for Aware Super.
Denis Hickey, CEO Americas, Lendlease commented, “On the back of the A$20 billion partnership we signed with Google last year to jointly deliver three major urban regeneration precincts in the San Francisco Bay area, this takes our US development pipeline to over A$30 billion of current and future projects.
Alek Misev, Portfolio Manager at Aware Super added, “We’re proud to move this project forward with Lendlease while further expanding our successful U.S. multifamily portfolio and building out our strategy in affordable housing, multifamily/build-to-rent and serviced apartments,”
Lendlease has a 40-year history operating in New York and reaffirming this commitment to the Big Apple, despite of the challenges brought by the pandemic, Jason Alderman, managing director of property at Lendlease noted. “Lendlease believes in, and is committed to, long-term opportunities in New York and our other target US gateway cities. We believe everything that has always made New York a special place – its cultural activities, diversity, dining and entertainment, and most importantly the people who come to the city to make connections in their professional and personal lives, will endure beyond the current COVID-19 related challenges.”
Lendlease now has 22 major urbanisation projects located across 10 global gateway cities in Australia, the US, Europe and Asia.