PRESS RELEASES - NYCRC FINANCING Print
NEW YORK CITY REGIONAL CENTER PROVIDING $247 MILLION FOR PROJECTS IN THE BROOKLYN NAVY YARD
NEW YORK, NY – August 11, 2014 – The New York City Regional Center (“NYCRC”) is providing $247 million of capital to help fund the continued redevelopment of the Brooklyn Navy Yard (“Navy Yard”), New York City’s largest industrial park. The federal government closed the Navy Yard in 1966 and subsequently sold it to the City of New York, which reopened it as an industrial complex. Today, the Navy Yard is becoming one of the most successful urban manufacturing districts in the country. The Navy Yard is spread out over 300 acres on the Brooklyn waterfront and encompasses 40 buildings totaling approximately 4 million square feet, 3 functioning dry docks, and 4 active piers.
Over the past few years, the City of New York has embarked on the largest expansion of the Navy Yard in 65 years. The redevelopment of the Navy Yard is a key element of the City of New York’s plan to spur economic growth, refurbish its industrial manufacturing sector, and create additional jobs. The NYCRC was selected to provide capital via the EB-5 program to assist with the redevelopment efforts in the Navy Yard. EB-5 funds from the NYCRC are directly helping to implement a broad range of new construction, infrastructure and building improvements, and the renovation of over 1.2 million square feet of vacant and dilapidated buildings.
Examples of NYCRC funding within the Navy Yard include the following:
- $60 million of capital to facilitate the construction and renovation of the Green Manufacturing Center and surrounding infrastructure work. The Green Manufacturing Center is a 215,000 square foot vacant industrial building that is being transformed into New York City’s leading hub for green manufacturing and sustainable design. This building was previously used as a machine shop for the United States Navy during WWII but has sat vacant for decades. EB-5 funds were also used to assist with surrounding infrastructure improvements in the Navy Yard such as the building of new roads, sewer and water lines and pile foundations and bulkhead walls to allow for the continued use of dry docks and adjacent berths to support maritime activity in the New York harbor.
- $42 million of capital to facilitate the construction and renovation of Building 77, an approximately one-million square foot industrial building and the largest facility in the Navy Yard. Building 77’s core systems suffered heavily from years of neglect and exposure to the elements and need substantial renovation. Given the building’s importance to the overall redevelopment of the Navy Yard, the Brooklyn Navy Yard Development Corporation sought EB-5 funding from the NYCRC to assist with a major restoration and fit-out of the building.
- $65 million of capital to assist with the expansion of Steiner Studios, the largest film and television studio complex in the eastern United States. Capital from the NYCRC facilitated the construction of five new television and commercial soundstages totaling 45,000 square feet as well as the renovation of a historic but vacant seven-story 235,000 square foot building into production and support space within the Navy Yard.
- $80 million of capital to increase the production capacity of Steiner Studios and further reinforce the Navy Yard as a central location for media production in New York City. This capital will help construct six new soundstages and production support space totaling over 177,000 square feet. The new facility will contain specialized stage and production space to support the increased demand from film and television companies.
“The NYCRC is proud to provide financing to help the redevelopment of New York City’s largest industrial park and further the Navy Yard’s mission to spur economic development and create new jobs,” said Paul Levinsohn, Managing Principal of the NYCRC.
“The redevelopment of the Navy Yard is a key element of the City of New York’s plan to refurbish its industrial manufacturing sector and create additional jobs. We are pleased to play a role in this effort,” added George L. Olsen, Managing Principal of the NYCRC.
The NYCRC was approved by the United States Citizenship and Immigration Services in 2008 to secure foreign investment for real estate projects within Brooklyn, Queens, Manhattan, and the Bronx. The NYCRC was the first regional center approved in New York City. The NYCRC works in conjunction with the government and designated developers to fund critical economic development projects in New York City. The NYCRC has become an important contributor to New York City’s economic revitalization by helping to fund a series of public/private real estate projects that are creating much needed jobs.
NYCRC projects include EB-5 funding to assist with the redevelopment of the Brooklyn Navy Yard, New York City’s largest industrial park, as well as funding to assist with the expansion of Steiner Studios, the city’s largest film and television production facility. The NYCRC has also provided capital for the Atlantic Yards project as well as the redevelopment of Downtown Brooklyn’s central business district. The NYCRC is assisting with the redevelopment of the George Washington Bridge Bus Station and the continuing efforts to revitalize Lower Manhattan’s waterfront and the business corridors in Washington Heights and the Bronx.
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