NEW YORK, NY – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged joint venture equity and construction financing for the development of the first phase of Lighthouse Point, a mixed-use residential and commercial project on Staten Island’s St. George waterfront.
HFF worked exclusively on behalf of New York-based developer Triangle Equities to arrange a joint venture equity partnership with Lubert-Adler Partners LP (Lubert-Adler), who contributed a majority interest of the required equity for the $95 million first phase of the project. Additionally, HFF secured construction financing for the partnership through Citizens Bank, a subsidiary of Citizens Financial Group, Inc.
The multi-phased development, which will encompass retail, office, hospitality and residential space once completed, is adjacent to the Staten Island Ferry Terminal. The $200 million, transit-oriented project will occupy the grounds of the historic United States Lighthouse Depot Complex and will incorporate its existing architectural elements into the final design. Phase I of the property will feature a 13-story, 116-unit residential tower; three-story, 59,700-square-foot commercial building; 274-space underground parking garage; and one-acre public plaza and greenspace. Phase II, which is not part of this transaction, will consist of the rehabilitation of four historic buildings and the construction of a newly-built, 175-key hotel.
The HFF team representing the developer was led by senior managing director Andrew Scandalios, managing director Rob Hinckley and director Geoff Goldstein.
“The redevelopment of this historic property into a multi-use, live-work-play community is integral to the transformation of the St. George waterfront into a dynamic civic hub,” Scandalios said. “Together with the New York Wheel, a 625-foot observation wheel, and Empire Outlets, a 300,000-square-foot shopping outlet mall with hotel, Lighthouse Point will support the creation of a New York destination benefitting local businesses and residents through an influx of commuter and tourist dollars. These three transformative projects, among several others currently under construction, represent more than $1 billion of direct investment into the Staten Island North Shore.”
“Structuring the capital was extraordinarily complex since the project utilizes many different sources including three New Markets Tax Credit (NMTC) providers, New York City grant money, New York State grant money, commercial bank debt from Citizens Bank and private equity from Lubert-Adler,” Hinckley added. “Lighthouse Point also makes use of the ‘80/20’ 421a tax abatement program and is on a city ground lease.”
Hinckley continued, “The endeavor is a shining example of how the public and private sectors can work together to achieve dramatic change by stimulating regrowth and development. Despite the many moving parts and unique nature of the transaction, HFF is pleased to have successfully assisted the developer in securing funding for this landmark project.”
About Triangle Equities
Triangle Equities (Triangle) was established in 1986 and has earned the reputation of a well-respected, professional, full service, real estate development firm. Lester Petracca, its principal, has combined the construction expertise he gained as partner at a family operated construction firm with nearly 30 years of development experience. Triangle and its related entities develop, own and manage commercial, residential and mixed-use properties in the New York Metropolitan area. Triangle Equities focuses on “value-added” developments and specializes in city projects, earning an excellent reputation for working together with government agencies and skillfully navigating the most demanding public approval processes. By actively embracing the complexities inherent to responsible urban development, Triangle has achieved sustainable results and unlocked substantial value for its investors, tenants and the communities in which it builds. For more information, please visit: www.triangleequities.com.
About Lubert-Adler Partners LP
Lubert-Adler Partners LP was co-founded in 1997 by Ira Lubert and Dean Adler, who collectively have over 50 years of experience in underwriting, acquiring, repositioning, refinancing and disposing real estate assets. Today, the Philadelphia-based firm has grown to include more than 20 investment professionals and has invested $6.5 billion of equity into real estate assets valued at more than $16 billion. For more information, visit www.lubertadler.com.
About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the oldest and largest financial services firms in the United States with assets in excess of $135 billion. Headquartered in Providence, Rhode Island, where its roots date back to 1828, Citizens Commercial Banking offers its commercial real estate and institutional/REIT clients a broad range of wholesale banking products and services including commercial real estate loans, lines of credit, treasury services, specialty finance, foreign exchange, capital markets and debt syndication. Citizens Bank is an active construction and permanent lender with CRE origination offices in New York, Boston, Washington, D.C., Chicago, Philadelphia and Charlotte.
About HFF
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.