NY Developers Acquire Troubled United Hospital Property
John Jordan | July 10, 2019
PORT CHESTER—Starwood Capital Group, which acquired the shuttered United Hospital property here 13 years ago and proposed a $450-million redevelopment at the site, has sold the complex to partners Rose Associates and BedRock Real Estate Partners of New York City.
No financial details of the transaction were disclosed. The sale of the 15.45-acre site that has been vacant and unused for more than a decade, was announced on June 28th by the new ownership.
Rose Associates is currently developing a more than $200-million project at 440 Hamilton Ave. in Downtown White Plains that will feature 468 rental units in two towers and 2,240 square feet of commercial/retail space. The firm is also developing 57 Alexander St., a $177.3-million residential development featuring 440 apartments in a seven-story building with 443 parking spaces on the Yonkers waterfront.
Starwood Capital had secured zoning approval for its redevelopment project in Port Chester a few years ago, but never proceeded with construction.
The new ownership says it will move forward with a plan, but at present is not providing much detail on its intentions for the property except to say that they intend to raze all existing structures on the property and develop “a mixed-use community that includes quality rental housing targeted to young professionals and empty nesters plus retail, restaurants, and other offerings.”
“We are thrilled to embark on the complete redevelopment of this ideally located property and to deliver a project that truly benefits Port Chester and the surrounding community,” said Amy Rose, president and CEO of Rose Associates. “This is our third development in Westchester and it underscores our commitment to the county.”
Located at the intersection of I-95, I-287 and Route 1, the property is within walking distance to the Metro North commuter rail stations in both Port Chester and Rye.
“This is a truly unique opportunity to create a new, vibrant, walkable community hub at the gateway to Port Chester,” said Chuck Berman, founder and managing principal of BedRock Real Estate Partners. “We look forward to meeting a market need for housing while layering in amenities and services that will be attractive to area residents.”
The Mayor of Port Chester Fritz Falanka said in a statement concerning the change in ownership of the United Hospital site, said, “I am very pleased to see this long-neglected property be embraced by developers who have what it takes to create something special and are excited to bring value to our community.”
In the coming months, Rose and BedRock stated that they will be collaborating with the mayor and village officials to advance plans for the site.
Rose Associates has been a developer and operator of multifamily residential properties in the New York metropolitan area for more than 90 years. The firm has completed more than $2 billion of adaptive reuse and ground-up projects over the past six years. Rose Associates stated that it is pursuing an aggressive growth strategy to expand its 14,000-unit portfolio and raise $1 billion by 2020 to execute new transit-oriented developments in the five boroughs, New Jersey and Westchester.
Founded in 2013 by Berman and Tracey Appelbaum, BedRock Real Estate Partners is a privately held investment manager specializing in the development and acquisition of rental apartments and mixed-use projects in urban locations from Boston to Washington, DC with a particular focus in the New York City metropolitan area. BedRock has invested in 18 projects, comprising more than 1.75 million square feet of apartment and retail space, with assets under management in excess of $1.3 billion.
Editor, Real Estate In-Depth