Blackstone Group and Ivanhoe Cambridge's $5.45 billion purchase of the Stuy-Town/Peter Cooper Village complex is a done deal at this point, but there's one aspect of the sale that's only recently come to light: the fact that it comes with about $625 million worth of air rights, both within the complex and potentially beyond. (h/t New York Post)
According to the Post, which spoke to sources within Blackstone, the company retained some 1 million square feet of air rights as part of the deal, which it will likely transfer to other developers throughout the city. Those particular parcels could be sold for as much as $500 per square foot, depending on the purchaser. Blackstone is expected to hold on to about 250,000 square feet of those air rights, which could include as much as 200,000 square feet for a community center, and 25,000 square feet apiece for residential and commercial ventures.
Of course, one of the big selling points of the record-breaking deal is that it preserves Stuy-Town's housing, rather than adding market-rate housing to it—which Blackstone sources claim is still the case. Sources also told the Post that once the investment firm is ready to transfer those rights, they'll go through a formal (and possibly lengthy) public-review process.
· Blackstone captures $625M worth of air rights [NYP]
· Stuy Town Sale Closes, But Not Before a 'Nuisance' of a Lawsuit [Curbed]
· New Stuy Town Deal Will Preserve 5,000 Affordable Units [Curbed]
· All Stuy Town coverage [Curbed]