BRP Companies has tapped a team from JLL Capital Markets to find a Joint Venture equity partner for its $286 million Archer Towers project in Queens.
Located at 163-05 Archer Avenue in Jamaica , the site represents the largest shovel-ready residential rental construction site in New York City
The 24-story 540,000 s/f project will offer a total of 605 residential units, including 424 market-rate apartments and 181 mixed-income units. Some 20,000 s/f of of amenities will include a movie screening room, a pet spa, attended parking, rooftop and finished outdoor space, a yoga studio, a basketball court, a pickleball court and landscaped rear yard.
“We are excited to discuss this investment with opportunity zone and traditional investors alike,” said Rob Hinckley , the JLL executive leading the team that includes Jeff Julien. Andrew Scandalios, Roland Merchant, Stephen Palmese, Steven Rutman, Nicco Lupo and Rob Root.
“Over the past several years, BRP has painstakingly designed, value-engineered and removed risk from this development, which will provide much-needed housing for city-dwellers. This is on the heels of BRP’s nearby highly-anticipated 669-unit, The Crossing at Jamaica Station, a public-private partnership development that is delivering soon. The multi-phase Archer Tower residential development, which includes a large portion of needed mixed-income regulated housing, is deemed ‘essential,’ allowing for the partnership to create much needed near-term jobs as construction will begin immediately, even within current market conditions.”
The Archer Towers project is located within an opportunity zone, providing significant post-tax savings over a 10-year hold for a qualified opportunity fund investor. The 10-year investment horizon will allow for the submarket to further develop, resulting in significant rent appreciation and value capture on reversion. It will also be the beneficiary of a 35-year tax abatement under the Affordable New York program.
Archer Towers is positioned adjacent to Jamaica Avenue’s retail corridor with national brands such as Home Depot, Dollar Tree, Blink Fitness and Old Navy within walking distance. It is located within a three-minute walk of the Jamaica Ave/Parsons Ave subway stop (E, J, Z) and a short 10-minute walk to the Sutphin Boulevard-Archer Avenue-JFK Subway Station and Jamaica LIRR. This provides residents express access to employment hubs throughout Queens, as well as an approximate 20-minute LIRR ride to Penn Station and Atlantic Terminal.
BRP has completed demolition of the existing buildings on the site, has 100% of construction drawings and can execute a Guaranteed Maximum Price construction contract imminently. The firm will begin construction of Archer Towers immediately upon closing of the joint venture equity financing and securing debt financing with their capital partner.
It is expected that an investor will also consider participating in the second phase of Archer Towers. This future addition will add 432 units to the overall project, including 130 additional affordable-housing units and further expanding the commanding presence of the development along Archer Avenue. Phase two is expected to begin construction in the summer of 2021.