NEW YORK—As the economy recovered, mixed-use development has come back in a big way, according to Arthur Adler, president and CEO, Americas, JLL, moderator of The Premier Development Cycle workshop held here during the NYU Hospitality Industry Investment Conference.
Two panelists— Marty Burger, CEO, Silverstein Properties, Inc.; and Kenneth Himmel, president and CEO, Related Urban; managing partner, Gulf Related—discussed their recent mixed-use projects that combine hotel, residential and commercial development.
Burger highlighted the upcoming Four Seasons Downtown New York. Currently under construction, the $950-million project includess hospitality, retail, residential and parking components. The 189-room hotel, which occupies the first 23 stories and includes a spa and pool, will open June 2016. He attributed much of the success to the project to the sale of the 157 condos. “Money will be made mostly on the condo side,” said Burger.
Himmel discussed the 35 Hudson Yards development, a $10-billion, mixed-used project that includes a 225-room Equinox Hotel with event and commercial space and nine restaurants. “I define hospitality in mixed-use projects as not just hotels but also the food and beverage experience,” said Himmel. He emphasized the importance of bringing together a number of partners to secure financing. “We used EB5 financing with another $500 million coming,” he said. “It’s about breaking down the project into manageable components.”