NEW WINDSOR, NY— The developer of a 260-acre, master-planned business park is looking for a few good hotels— three to be exact — that it can position within its $450 million project near Stewart Airport, here, about 60 miles north of New York City. Albany-based First Columbia LLC is entering into lodging by sending out RFPs (requests for proposal) to hotel developers who can deliver a limited-service, full-service and extended-stay property— about 500 rooms total— over the venture’s estimated seven- to 15-year build out. The development, New York International Plaza, will encompass more than 2 million square feet of research and development facilities; high-tech office space; training/educational, medical, health and fitness centers; restaurant and retail components; and the hotels. The developer has a $75 million, 99-year ground lease for the acreage. The Plaza is one of several developments occurring at or near Stewart Airport, a former headquarters base for the U.S. Air Force and sub-base for West Point. First Columbia also is developing the Hudson Valley World Trade Center, which will serve as the Plaza’s focal point. In addition, U.K.-based National Express Group (NEG) is revamping and expanding the airport, which New York State privatized. NEG wants to transform Stewart from a regional airport into an international commercial, air cargo and passenger facility. Another 1,200-acre parcel is expected to be developed by the State for cargo and distribution facilities. According to Kevin Bette, project leader and senior executive at First Columbia, 90% of the site’s structures are obsolete and will be torn down. Remaining buildings are being renovated, and a fiber-optics loop is being layered in. “The concept of having a technology park adjacent to an airport provides two major users for hotel facilities,” said Bette, noting Orange County, the project’s location, is considered a hot market for commercial and residential growth. “IBM just announced its $2.5 billion semi-conductor facility across the river in East Fishkill,” added Bette. “That itself will create huge demand for commercial properties in the area, and demand for the airport itself.” As to hotels that might best fit the project, Bette said he’s keeping an open mind. “We’ve heard some tout the advantages of having a single brand. Some say the multiple facilities in competition would be better for us.” In addition to RFPs, First Columbia hired Massachusetts-based Hospitality Resolutions to examine hotel development opportunities being driven by the project. According to HRI President Robert Crawford, the lodging market in nearby Newburgh “is very viable” as it’s near several state and Interstate highways. However, he didn’t expect it could absorb increased demand growth generated by the Plaza/airport projects. “We definitely want to lead with a limited-service product; we want the WTC to be supported by a full-service hotel, around 200 to 300 rooms; then follow with one— or more— extended-stay hotels, because there’ll be educational campuses, training, R&D needs. We think that’s the sequencing we’ll go through,” said Crawford. He added one benefit is sites already are permitted, which can yield cost savings. He estimated per square foot costs would run $85 to $100, “but will be favorable because we’re going out on long-term ground leases; there’ll be no land costs.” Developers’ risk will be somewhat protected as each hotel will be built as the demand arises. “What’s contemplated is an exclusive arrangement with a hotel partner,” Crawford said. “We’d like whoever we’re working with to be flexible enough to deliver something that satisfies the tenant,” said Bette. For example, if IBM takes space, it may need a luxury property to satisfy its clients’ needs. Deborah Mikhitarian, First Columbia’s director of real estate, said the firm can lease a turnkey property at the site, and anticipates interest from high-tech companies. Since the park is support
