Date: Jun 25, 2014
Press Release Number: 133-2014
The Port Authority Board of Commissioners today approved the sale of land and associated development rights for two properties owned by the Port Authority on the Lincoln Tunnel Expressway below 34th Street in excess of $100 million to The Dermot Company. The deal provides the Port Authority with significant funds to advance core transportation needs while disposing of non-core real estate assets at a time when real estate demand is strong in the Hudson Yards section of midtown Manhattan.
Lot 22 and a portion of the adjacent Lot 72 on the Lincoln Tunnel Expressway on 33rd Street will be transferred from the Port Authority to The Dermot Company, forming a development lot of approximately 25,000 square feet. The Port Authority will maintain ownership and control of the Lincoln Tunnel Expressway while monetizing associated development rights. As part of the deal, The Dermot Company will develop and maintain a public space between 33rd and 34th street. The Dermot Company was selected following a competitive RFP process.
"Our mission is investing and maintaining critical transportation infrastructure, and today's action by the board allows us to realize significant non-toll revenue to support that mission by disposing of an asset that no longer serves a purpose for the agency," said Port Authority Executive Director Pat Foye. "We will continue to take an aggressive approach to exploring options that offer significant value for non-core assets and recycle that revenue into our bus terminals, airports, bridges and port facilities."
"In order to best serve our customers and the region we must continue to pursue non-toll, non-fare revenue to invest in our critical and aging infrastructure," said Port Authority Deputy Executive Director Deb Gramiccioni. "Today's action allows the Port Authority to leverage real estate assets that have no current or future use to the agency to make improvements to our region's transportation infrastructure and generate jobs and economic activity for New York and New Jersey."
The Dermot Company proposal was ranked the highest rated out of the proposals from eleven developers and offers the best value to the Port Authority. The sale is expected to close in 2014. The transaction includes a 2-year option for Dermot to purchase the development rights to an adjacent lot, which would provide the Port Authority with more than $50 million in payments. The sale is not subject to financing and does not require zoning amendments.
The Dermot Company, Inc., based in New York City, was formed in 1991 as a real estate investment and management company focused on multi-family sector opportunities. The company has evolved into a fully integrated real estate company employing over 100 real estate professionals in investment, finance, management and development. Dermot currently manages nearly $2 billion in assets and owns, holds investments in or manages nearly 5,000 apartments.
Port Authority of New York and New Jersey
Founded in 1921, the Port Authority of New York and New Jersey builds, operates, and maintains many of the most important transportation and trade infrastructure assets in the country. The agency's network of aviation, ground, rail, and seaport facilities is among the busiest in the country, supports more than 550,000 regional jobs, and generates more than $23 billion in annual wages and $80 billion in annual economic activity. The Port Authority also owns and manages the 16-acre World Trade Center site, where construction crews are building the iconic One World Trade Center, which is now the tallest skyscraper in the Western Hemisphere. The Port Authority receives no tax revenue from either the State of New York or New Jersey or from the City of New York. The agency raises the necessary funds for the improvement, construction or acquisition of its facilities primarily on its own credit. For more information, please visit http://www.panynj.gov.