H&R REIT, a Canadian open-ended REIT, bought Two Gotham Center in Long Island City, N.Y. for $415.5 million from Tishman Speyer, in partnership with Square Mil Capital LLC and the Modell family.
The property is a 22-story, 670,000-sq.-ft. class-A office building that has been leased to the New York City Department of Health and Mental Hygiene for a 20-year term. Tishman Speyer completed the building in 2011. It has been certified for Leadership in Energy and Environmental Design (LEED).
Darcy Stacom and Bill Shanahan, vice chairmen with CB Richard Ellis Group Inc., along with Paul Gillen, senior vice president, represented the seller in the transaction.
“This groundbreaking deal underscores the continued transformation of Long Island City into a premier destination for high-end office users,” said Bill Shanahan in a statement. “Its proximity to Long Island City’s major transportation hub, along with cutting-edge green technology and breathtaking views of Manhattan, makes Two Gotham Center an attractive, high-end alternative to Midtown and a major business center in its own right.”
Two Gotham Center reportedly cost $316 million to develop and is supposed to be a part of a larger planned complex, the 3.5-million-sq.-ft. mixed-use Gotham Center.