Sl Green Realty Corp. has signed an agreement with Pace University to develop a nearly 600-bed dormitory at 180 Broadway at the northeast corner of John Street. It is near the school’s downtown campus and will replace leased facilities in Brooklyn Heights.
The base of the new 24-story building will encompass about 30,000 feet of retail and will be owned by SL Green and its retail partner, Jeff Sutton, who also owns the land. Sutton is known for cutting record-setting deals with strong retail tenants.
Designed by Karl Fischer Architect, the 220,000 square-foot building will be completed in 2013, a year before the nearby Fulton Street Transit Center opens.
Pace was represented by David Falk, president of the Tri-State region for Newmark Knight Frank. Falk is also marketing Pace’s 35-acre Briarcliff Manor satellite campus as the school is reconfiguring and consolidating at its Pleasantville campus in Westchester.
Stroock Stroock & Lavan did the legal work. Pace will own a long-term ground lease condominium interest in the new building. Sources said the ground lease must be over 30 years to entitle them to a non-profit real estate tax exemption that will be up to SL Green to secure. There are 4,450 undergraduates attending Pace downtown. “Having them live a few blocks from campus is an important strategy,” said Pace senior vice president William McGrath.
“This is a smart deal for Pace because New York is becoming a college town and the problem you have here is insufficient housing,” said Robert Shapiro of City Center Real Estate who has worked on other college dorm deals.
